This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America, Radian: Financial Winners

Winners and losers updated with closing prices.

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) was the winner among bank stocks on Thursday, with shares rising 9.5% to close at $7.65, although earlier gains were higher.

The company's agreement to sell 50,000 preferred shares to Warren Buffett's Berkshire Hathaway (BRK.B) for $5 billion propelled Bank of America's shares, along with a few other banks and the monoline insurers, on an otherwise down day for the market.

As part of its investment deal with Bank of America, Berkshire Hathaway received warrants to purchase up to 700 million of the bank's common shares at price of just above $7.14. So Buffet was in the money by $357 million at Thursday's market close.

The preferred shares have a 6% coupon, and Berkshire Hathaway will also receive a 5% premium when Bank of America redeems the preferred shares.

While the broad indexes all saw 2% declines, bond insurers piggybacked on Bank of America. Shares of Radian (RDN - Get Report) shot up 12% to close at $2.70, while MBIA (MBI) saw a smaller gain of 2% to close at $6.90. Units of both companies are suing Bank of America over mortgage claims.

The KBW Bank Index (I:BKX) declined sightly to close at 37.65, with 20 out of 24 index components down for the session.

Other large banks seeing bucking the banking sector's downward trend on Thursday included Citigroup (C - Get Report) which was up 5% to close at $29.83; Morgan Stanley (MS), rising over 3% to close at $16.77; and Wells Fargo (WFC - Get Report), which rose 1% to close at $24.76.

Thursday's financial loser was Fifth Third Bancorp (FITB - Get Report), which declined over 3% to close at $9.73.


-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to

To submit a news tip, send an email to:
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
C $46.28 0.00%
FITB $18.31 0.00%
RDN $12.79 0.00%
STI $41.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs