Updated from 3:13 p.m. EDT

Financial stocks were flat as several big banks reversed recent losses on Monday, including Bank of America ( BAC).

BofA shares rose 19.4% to $3.75, after the Financial Times reported the company was preparing to issue debt that would be guaranteed under a Federal Deposit Insurance Corp. program.

Wells Fargo ( WFC) and US Bancorp ( USB) also were on the rise, after billionaire investor Warren Buffett, whose Berkshire Hathaway ( BRK-A) holds both stocks, have good prospects several years out. Wells shares were up 15.8% to $9.97, while US Bancorp shares rose 15.5% to $10.19.

Capital One Financial ( COF) shares also were up 5.1% to $8.73 after it quarterly cut its dividend to 5 cents from 37.5 cents to preserve more than $500 million a year.

Life insurers were a drag on the NYSE Financial Sector Index, which was recently down fractionally to 2,111.

Assured Guaranty ( AGO) was off 19.2%, Axa Financial ( AXA) was off 7.9% and Lincoln Financial ( LNC) lost 7.2%.

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

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