Financial Winners and Losers: Citigroup

(Updated with final closing prices)

Financial stocks finished mostly higher Wednesday, with Citigroup (C) one of the sector's winners following a report it would increase salaries in order to offset lower bonuses.

Citigroup plans to raise the base salaries of workers by as much as 50% this year to help compensate for cuts in annual bonuses, according to a report in The New York Times.

The plan by the banking giant means most Citigroup employees will make as much money as they did in 2008, although some might earn more and others less, the report said. Citigroup shares finished up 1% to $3.04.

In other bank news, JPMorgan Chase (JPM) topped The Banker magazine's top 1000 world banks, published in the July issue. The list charts the world's banks according to Tier 1 capital. JPMorgan's position as strongest bank was helped by its acquisitions of Bear Stearns and Washington Mutual last year.

Bank of America (BAC) ranked second on the list, with Citigroup taking third spot. Royal Bank of Scotland (RBS) was in fourth place, and The Banker said RBS's $59.3 billion loss in 2008 eclipsed all rivals. HSBC Holdings (HBC) rounded out the top five, and was the only one of the group not to receive any government funds. If that support were stripped out, the magazine said HSBC would rank third.

JPMorgan shares slipped 0.3% to $33.46. Bank of America was higher by 1% at $12.35. RBS shares dipped 0.3% to close at $11.69. HSBC added 0.3% to $42.28.

Elsewhere, American International Group (AIG) said it has an agreement to sell all of its shares in its consumer finance operations in Mexico. The transaction is subject to the satisfaction of certain conditions, including approval by the Mexican Federal Competition Commission. Terms of the transaction were not disclosed.