Financial Winners and Losers: Citigroup

(Updated with final stock price moves throughout, adds note on Citigroup's $2.5 billion sale of notes.)

NEW YORK (TheStreet) -- Financial stocks finished mostly higher Wednesday, with Citigroup (C Quote) among the top performers after reports the bank would unload several consumer finance businesses.

Citigroup CEO Vikram Pandit told Singapore's Business Times that the bank plans to sell 20 businesses in the consumer finance area. Many of the businesses are located in Europe, the report said.

Rochdale Securities analyst Richard Bove said the sale of the bank's consumer units is a positive and shows Citigroup is continuing to pursue its liquidation strategy.

"To the degree that the bank can divest itself of these operations, it will reduce its loan loss provision and its borrowing costs," Bove wrote in a research note. "If the divisions cannot be sold they will simply be shut down and liquidated. In either case it will be a positive event for the company."

In the final hour of trading, Reuters reported that Citigroup sold $2.5 billion in five-year non-guaranteed notes, citing a market source familiar with the sale.

Citigroup shares climbed 33 cents, or 10.2%, to close at $3.58. Among other winning bank stocks Wednesday, Bank of America (BAC Quote) finished up 6.5% to $16.66, and Wells Fargo (WFC Quote) rose 5.7% to $28.02.

In other bank news, JPMorgan Chase (JPM Quote) launched a cash tender offer for up to $3.4 billion in trust preferred securities. Independent research group CreditSights said that due to the lack of liquidity and low coupon payment, many investors should accept the tender offer.

Additionally, CreditSights estimated that JPMorgan could book a gain of up to $1.3 billion from the tender (or 21 cents a share after taxes). JPMorgan shares added $1.57, or 3.9%, to end the day at $41.78.