Financial Winners and Losers: JPMorgan

Updated from 2:29 p.m. EDT

Several bank stocks gave back early gains and finished lower Monday after JPMorgan Chase (JPM Quote) outlined plans for a $5 billion stock offering.

JPMorgan said it intends to raise $5 billion in common equity in order to repay $25 billion borrowed through the Troubled Asset Relief Program, or TARP, last year. The bank said it was offering stock in order to satisfy a supervisory condition that the largest bank holding companies redeeming TARP preferred capital demonstrate access to the equity capital markets.

While approval has not been granted, JPMorgan said it believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to do so before the end of June. ...