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 - Get Report) 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.

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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.