Financial Winners and Losers: JPMorgan

Updated from 1:59 p.m. EDT

Financial stocks were mixed Tuesday afternoon as three major U.S. banks sought government approval to repay government bailout money.

Goldman Sachs (GS), Morgan Stanley (MS), and JPMorgan Chase (JPM) have applied to refund a combined $45 billion of government preferred equity investments, Bloomberg reported citing people familiar with the matter. The three banks need approval from the Federal Reserve to return the money, according to the report.

Meanwhile, Credit Suisse raised its price target for Morgan Stanley shares to $28 from $26, based on improved market conditions. The firm also increased its earnings estimates for Morgan, raising its full-year earnings target to $1 a share from 95 cents. For the second quarter, Credit Suisse now expects earnings of 40 cents a share compared to its previous view of 15 cents, as the firm believes core business trends have improved, bid-ask spreads remain healthy, and loss ratios are down.

The analyst move came as Morgan Stanley announced that it is commencing a secondary offering of all of its remaining ownership in MSCI Inc. (MXB), which will complete the separation that began in 2007. The offering will consist of 27.7 million shares of MSCI class A common stock, par value of a penny a share. MSCI Inc. will not receive any of the proceeds from the sale of the class A common stock.

Morgan Stanley shares rose 2.2% to close at $28.91. Goldman shares gave back 1.4% to $141.15 and JPMorgan shed 3.9% to $35.81.

Among other bank stocks, Citigroup (C) added 3.6%, while Bank of America (BAC) retreated 4.1% andWells Fargo (WFC) slid 5.7%.