Thursday's Financial Winners & Losers

Financial stocks were rallying Thursday, as the market liked the Federal Reserve's rate cut and accompanying statement better after sleeping on it a night, as well as positive earnings and M&A news from several companies.

The rate-setting Federal Open Market Committee on Wednesday cut the federal funds rate a quarter point to 2%, as expected. The accompanying statement, however, was vague in its hints about the central bank's next move and stocks finished the day down slightly.

On Thursday, they rallied across the board and the NYSE Financial Sector Index closed up 208.52 to 7,942.77.

The gains were aided by an optimistic outlook for mortgage lender IndyMac(IMB Quote). CEO Mike Perry sent a note to employees saying he believed the company had "turned a corner" and that business was improving. The stock shot up 22.2% to $3.97. IndyMac is still expected to record a loss in the first quarter, but not as bad as the fourth quarter loss.

Radian Group(RDN Quote) shares also rallied 14.4% after announcing it had amended its revolving credit agreement. The amendment removes any minimum credit rating requirements and reduces the net worth the company must keep. Shares of Radian were up 78 cents to $6.18.

SunTrust Banks (STI Quote) climbed 5.3% to $58.70 after announcing it had completed the acquisition of GB&T Bancshares. The integration should be finished by late summer 2008 and adds roughly $1.5 billion in deposits and 17 banking offices in the Georgia market.

Wells Fargo (WFC Quote) also was buoyed by deal news. The San Francisco bank acquired Flatiron Credit for an undisclosed amount. Denver-based Flatiron issues loans to customers that need it to purchase insurance and is the seventh largest insurance premium lender. It had been a subsidiary of TD Banknorth. Well Fargo shares added 4.8% to $31.66.