Thursday's Financial Winners & Losers

Updated from 2:51 p.m. EDT

Financial stocks wavered around the flat line Thursday morning before sinking into the red, even as volume exploded at Countrywide (CFC Quote) on news of an investment by Bank of America (BAC Quote).

Countrywide shares had rocketed in after-hours trading Wednesday and premarket action this morning, before cooling off to a 0.9% gain, after BofA bought $2 billion in nonvoting convertible preferred stock. Countrywide was upgraded at both Wachovia and Friedman Billings, each of which said the infusion will substantially help the mortgage lender.

Shares of Countrywide closed at $22.02. BofA closed up 18 cents to $51.83.

In other positive brokerage calls, transaction processor Moneygram International (MGI Quote) was upped to outperform at Morgan Keegan, and New York insurer Assurant (AIZ Quote) got a new outperform rating at Wachovia.

Minneapolis-based Moneygram closed up 71 cents, or 3.2%, to $22.62. Assurant closed up 1.1% at $52.35.

OneBeacon Insurance (OB Quote), meanwhile, climbed 5.5% to $21.39 on word it plans to repurchase up to $200 million of its shares.

But Anthracite Capital (AHR Quote) lost 3.9% after the New York real estate investment trust proposed to offer $100 million in convertible senior bonds to institutional buyers, as well as an initial purchasers' option for another $25 million worth to cover any overallotments. Shares closed down 37 cents to $9.18.