Financial Winners & Losers: Wachovia

UBS is slightly lower after saying it will cut jobs.
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Financial stocks rose early along with the overall market Friday as the House of Representatives moved closer to making the government's proposed rescue package a reality, but after the vote, the sector pulled back from its highs.

The House voted to approve Senate amendments that allowed the Bush administration's

bailout

plan to proceed by a 263-171 vote. However, traders sold on the news, and the major market averages came off their best levels.

Recently, the KBW Bank index was down 1.4%, while the NYSE Financial Sector index was up 1.8%. The Amex Securities Broker/Dealer index was tacking on 0.6%.

Among stocks,

Wachovia

(WB) - Get Report

was the story of the day, jumping 70% to $6.64 after

Wells Fargo

(WFC) - Get Report

said it would acquire the North Carolina bank for more than $15 billion. Earlier this week,

Citigroup

(C) - Get Report

said it had a deal, with government backing, to buy Wachovia.

Citi said the Wells Fargo transaction was a "clear breach of an exclusivity agreement" it had with

Wachovia

and demanded the new proposal be shelved. Shares of Citi were down 12%, and Wells was up 7.4%.

AIG

(AIG) - Get Report

was also rising after it said it plans to sell some of its businesses while holding on to its U.S. property and casualty and foreign general insurance operations. Shares of

AIG

were up almost 9% to $4.35.

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UBS

(UBS) - Get Report

was trading to the downside, falling 2.2% to $19.66 following word from the Swiss bank that it will eliminate around 2,000 jobs in its investment-banking unit.

UBS

said the latest job cuts will bring staffing levels to about 17,000 by year-end, down about 6,000 since the third quarter of last year.

Elsewhere in the group,

Goldman Sachs

(GS) - Get Report

was up 3.5%.

Morgan Stanley

(MS) - Get Report

was gaining 8.8%, but

JPMorgan Chase

(JPM) - Get Report

was easing by 0.9%.

This article was written by a staff member of TheStreet.com.