AIG: Financial Winners and Losers

In other bank news, The Wall Street Journal reports that Goldman Sachs (GS) plans to amend terms of a $3 billion loan it had given to CIT Group (CIT).

Goldman Sachs extended the funding to the troubled lender in June 2008, according to regulatory filings. The 20-year contract, which was put in place as the credit markets froze, calls for CIT to pay Goldman 2.85% of the maximum amount lent, which would come to about $85.5 million annually for the first 10 years of the agreement, the report said.

Goldman Sachs was fractionally lower at $186.35. CIT Group shares rose 4 cents, or 3.6%, to $1.16.

Elsewhere, The Wall Street Journal reports that Kenneth Feinberg, the Obama administration's pay czar, plans to cut the annual cash salaries for many of the top employees at firms receiving large sums of government aid. Feinberg is planning to shift a chunk of an employee's annual salary into stock that can't be accessed for several years, the report said, citing people familiar with the matter.

By mid-October, Feinberg is expected to issue his determination on compensation packages for 175 of the most-highly compensated executives and employees at the seven firms he oversees, including AIG, Bank of America (BAC), Citigroup and General Motors.

Among other bank stocks, Morgan Stanley (MS) gained 2.7% to $30.64, Wells Fargo (WFC) was adding 2% to $28.66 and JPMorgan Chase (JPM) rose 1.6% to $44.51. Bank of America was slipping 0.4% at $16.90.

-- Written by Robert Holmes in New York.

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