Financials Winners and Losers: AIG

(Financial Winners & Losers story updated for closing stock prices)

NEW YORK (TheStreet) -- American International Group(AIG) was one of the winners among financial stocks Tuesday after word emerged that the insurer would cancel the planned IPO of its Chartis unit.

On Tuesday, AIG shares jumped by nearly 11%, or $2.99, to end the session at $31.05.

In news related to AIG's executive-bonus soap opera, the Obama administration's pay czar, Kenneth Feinberg, approved a request by AIG to grant one of its top executives a long-term compensation package that includes stock options with a current value of $3.26 million, and an additional incentive award of up to $1 million. The executive wasn't named in the report.

Elsewhere Tuesday, internationally-focused news drove the best and worst performances in the financial sector.

State Street Corp.(STT) announced a deal to acquire the securities services arm of Italian banking giant Intesa Sanpaolo. State Street shares gained 3.8%, or $1.60, to close at $43.86 Tuesday.

Shares of Charles Schwab(SCHW) also advanced as the rumor mill continued to churn, pointing to the discount brokerage as potential acquirer of E*Trade Financial(EFTC). Schwab shares gained 50 cents, or 2.7%, to close at $19.06.

Also from overseas, the FBI was investigating a gang of Russian computer hackers who reportedly stole millions of dollars from Citigroup(C), according to the The Wall Street Journal.