Financial Winners and Losers: JPMorgan

Updated from 2:29 p.m. EDT

Several bank stocks gave back early gains and finished lower Monday after JPMorgan Chase (JPM Quote) outlined plans for a $5 billion stock offering.

JPMorgan said it intends to raise $5 billion in common equity in order to repay $25 billion borrowed through the Troubled Asset Relief Program, or TARP, last year. The bank said it was offering stock in order to satisfy a supervisory condition that the largest bank holding companies redeeming TARP preferred capital demonstrate access to the equity capital markets.

While approval has not been granted, JPMorgan said it believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to do so before the end of June.

JPMorgan shares gave back early gains and finished down 2.1% at $36.11. Among other bank stocks, Citigroup (C Quote) lost 0.8%, Bank of America (BAC Quote) fell 0.5%, and Wells Fargo (WFC Quote) dipped 0.3%.

Citigroup's loss may also be attributed to its announced removal from the Dow Jones Industrial Average. Before the start of trading on June 8, Travelers Companies (TRV Quote) will replace Citigroup as a component of the Dow.

Citigroup was added to the Dow on March 17, 1997, as Citicorp. Ironically, Travelers merged with Citicorp in 1998 and was later spun off in 2002. Travelers shares climbed 3.1% to $41.91.

In addition to JPMorgan, several other companies announced capital raising plans. Prudential Financial (PRU Quote) shares slid after the company said it will not take bailout funds and instead plans to raise $1.25 billion on its own through the sale of common stock.