BofA: Financial Winners and Losers

(Updated with stock price moves.)

NEW YORK (TheStreet) -- Bank of America (BAC Quote) was among the losers of the financial sector Monday after a bank analyst argued that it would have to sell more stock to satisfy the U.S. government's demands, which would "meaningfully harm" shareholders.

Bank of America shares were down 92 cents, or 5.7%, to $15.30 after Rochdale Securities analyst Dick Bove late Friday said that BofA wants out of the "uneven partnership" with the government, which apparently is saying no to a deal. If BofA did what the government wants "it would have to sell 3 billion shares or increase its share base by 35%," Bove said.

"Bottom line, the bank and its shareholders must stay chained to a government that only demonstrates ill will toward the organization," Bove wrote in his research note.

Bove also made headlines after cutting his rating on Fifth Third Bancorp (FITB Quote) to sell from neutral and the price target to $9 from $11. Bove argued that continued losses will prevent the leveraging of the balance sheet and may, at some point, force an equity offering. He added that Fifth Third may not show a profit until 2011.

He also reduced his rating for SunTrust (STI Quote) to sell from neutral. Bove said the bank's loan losses from its exposure to Florida and the housing market may keep the company in a loss position until the beginning of 2011.

Fifth Third shares were falling by 73 cents, or 7.1%, to $9.61. SunTrust was down $1.06, or 5.1%, to $19.93.