Financial Winners & Losers: Bank of America

Updated from 1:13 p.m. ET

Financial stocks experienced mixed and wild trading Thursday, as uncertainty about the government's handling of the bailout package rattled the sector.

The KBW Bank Index gained 1.8% to 27.13, and the Financial Select Sector SPDR (XLF Quote) ETF was edging up 1.6% at $9.11.

The relatively modest moves in the sector indices belied broader moves among the space's big names, nearly all of which are participants in the Treasury Department's Troubled Asset Relief Program, which has provided cash injections to firms in exchange for preferred equity stakes. The Obama administration on Wednesday announced it would attach pay caps for executives to the deployment of additional capital, a sign that additional bailouts will not come as easily under the new president.

Shares of Bank of America (BAC Quote) were up 3% to $4.84. Earlier in the session, the stock reached an intraday low of $3.77. BofA made headlines earlier this week on reports that senior executives were departing the firm for Deutsche Bank (DB Quote). Skepticism about the bank's viability persists following its merger with Merrill Lynch and the government's deployment of billions in additional bailout aid.

Wells Fargo (WFC Quote) lost 6.8% to $16.27, after earlier sinking nearly 16%. It has received $25 billion in government funds and last year acquired the troubled Wachovia.

Citigroup (C Quote) was up fractionally to $3.53. The company on Thursday agreed to sell servicing rights on part of its loan portfolio to Wilbur Ross for $1.5 billion.

Several large bank holding companies were holding up despite the financial malaise.