Updated with closing stock prices.

NEW YORK (

TheStreet

) -- Financial stocks were mostly in the red on Monday, but a few outperformers included

AIG

(AIG) - Get Report

and

American Express

(AXP) - Get Report

.

The Financial Select Sector SPDR Trust fell 0.2% to $14.42.

The stocks of all six of the largest U.S. banks fell on Monday.

JPMorgan Chase

(JPM) - Get Report

shares fell 1.7% to $39.08.

Bank of America

(BAC) - Get Report

shares fell 2.6% to $13.24.

Wells Fargo

(WFC) - Get Report

shares fell 0.2% to $25.53.

U.S. Bancorp

(USB) - Get Report

shares fell 2.5% to $21.86.

PNC Financial Services

(PNC) - Get Report

shares fell 3% to $51.47.

Citigroup

(C) - Get Report

shares fell 0.9% to $3.87, despite a report out saying that the

U.S. Treasury

may not meet its target date of the end of 2010 to fully exit its stake in the bank.

Moody's Investor Services downgraded Anglo Irish Bank's senior unsecured rating by three notches to Baa3 from A3 and plans to keep the rating on review for further possible downgrade, it says. Moody's also downgraded covered mortgage bonds issued by Allied Irish Bank and Anglo Irish Bank's mortgage bonds to A2 from Aa2.

In the news,

M&T Bank

(MTB) - Get Report

shares sunk 7% to $84.24 after speculation ensued that

merger discussions

between the Buffalo-based regional bank and

Banco Santander

( STD) had stalled again.

Elsewhere shares of AIG surged 4.7% to $38.20. The U.S. Treasury is looking to finalize a plan to exit its stake in the insurance giants, media reports said.

Shares of

First Horizon National

(FHN) - Get Report

rose 0/6% to $10.97.

A Memphis local newspaper cited comments from its CEO Bryan Jordan that the recovering regional bank is apparently looking to take part in the upcoming bank consolidation expected over the next few years.

TheStreet

spoke with senior management of

First Horizon

back in early August, who said that the bank was considering acquisitions in markets both within and outside of Tennessee.

Also on Monday, American Express shares rose 0.7% to $43.44.

--Written by Laurie Kulikowski in New York.

To contact the writer of this article, click here:

Laurie Kulikowski

.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.