Financial Winners and Losers: Morgan

Updated from 2:07 p.m. EDT

Financial stocks finished mixed Tuesday, with Morgan Stanley (MS Quote) among the handful of losers despite word it would begin the repayment of government bailout funds Wednesday.

CNBC, citing a person familiar with the situation, reported that Morgan Stanley will start repaying billions of dollars in funds received from the Troubled Asset Relief Program. Morgan Stanley received $10 billion from the Treasury and was told it needed to raise $1.8 billion in capital by the government's stress tests.

However, the firm has raised more than $10 billion through equity, debt and asset sales. After spending most of the session in positive territory, shares shed 1.1% to finish at $28.10. ...