Financial Winners & Losers: Morgan

Financial stocks managed to end a rocky session for the market Friday with gains, despite selloffs in some of the sector's most beaten-down names.

The KBW Bank index was up 8.5%, and the NYSE Financial Sector index was better by 2.3%. The Amex Securities Broker/Dealer index rose 3%.

Morgan Stanley (MS Quote - Cramer on MS - Stock Picks) was one of the biggest losers, falling 22% to $9.68 as worries grew about the health of the company. Morgan is due to get a $9 billion infusion from Japan's Mitsubishi UFJ (MTU Quote - Cramer on MTU - Stock Picks), but the investment won't close until next Tuesday.

Though Mitsubishi reiterated its commitment to completing the deal, shareholders weren't sold. Weighing on the stock was word from Moody's that it might downgrade Morgan's credit rating.

The ratings agency also put a negative outlook on the credit rating of Goldman Sachs. Goldman's shares fell 12%.

Wachovia (WB Quote - Cramer on WB - Stock Picks), however, was one of the day's top winners, surging 43% to $5.15 after Citigroup (C Quote - Cramer on C - Stock Picks) said it would walk away from its acquisition attempt and let Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks) go through with its merger.

Shares of Citi advanced 9%, while Wells tacked on nearly 4%.

Elsewhere among stocks with gains, Bank of America (BAC Quote - Cramer on BAC - Stock Picks) rose 6.3%, and JPMorgan Chase (JPM Quote - Cramer on JPM - Stock Picks) was up 13.5%.