AIG: Financial Winners & Losers

(Updated with fresh stock price quotes)

NEW YORK (TheStreet) -- American International Group (AIG Quote) was among the losers of the financial sector Monday after an analyst determined the insurer has a deficiency in its reserves.

AIG shares tumbled after Sanford C. Bernstein analyst Todd Bault slashed his price target for the stock by 40%, arguing that insufficient reserves may hurt the insurer's ability to repay bailout funds to the U.S. government. Bault wrote in a research note that he estimates an $11 billion deficit in the reserve amounts, creating more uncertainty for the company.

The price target reduction for AIG's stock follows a report in The Financial Times that the insurer's aviation business, International Lease Finance, could receive a bid this week for half of its business from a private-equity consortium and the unit's CEO Steven Udvar-Hazy.

AIG lost $4.90, or 14.7%, to $28.40.

Most bank stocks traded higher following a separate report in The Financial Times that regulators under the guidance of the Financial Stability Board have drawn up a list of 30 global financial institutions that are earmarked for cross-border supervision exercises.

The list, which is part of an effort to halt systemic risks from spreading around the world in any future financial crisis, includes Bank of America (BAC Quote), Goldman Sachs (GS Quote), JPMorgan Chase (JPM Quote), Morgan Stanley (MS Quote) and Citigroup (C Quote) in the U.S., as well as UBS (UBS Quote), HSBC (HBC Quote) and Barclays (BCS Quote) overseas.

Separately, Goldman Sachs analysts said they estimate that the U.S. financial sector is entering the third and final leg of the credit loss cycle. Goldman said $1.6 trillion of losses have been realized to date out of a total of $2.1 trillion to $2.6 trillion of total loss from U.S. credit.