) -- Financial stocks were mixed on Tuesday as investors waiting to hear more details from the

Federal Reserve

on its plan to buy $600 billion in bonds in order to boost the economy.


Financial Select Sector SPDR

(XLF) - Get Report

was trading sideways on Tuesday. The exchange-traded fund which tracks the financial sector was recently up marginally to $15.75.


(AIG) - Get Report

shares surged as much as 8%, setting a new intraday 52-week-high share price of $52.45. Based on that price, the stock is now more than double its low of $21.54 set in February of this year.

AIG shares

have been benefiting since its announcement last week that it agreed to a revised bailout repayment plan, in which the insurer would use proceeds from asset sales to repay the Fed, while the U.S. Treasury Department will exchange its preferred stock for common equity, much like it did with


(C) - Get Report


At last check, AIG's stock was rising 5.9% to $51.37 with nearly 12 million shares traded.

Shares of large cap regional banks

Fifth Third Bancorp

(FITB) - Get Report



(KEY) - Get Report

rose Tuesday.

In contrast,

Huntington Bancshares

(HBAN) - Get Report

continued its descent on Tuesday, down 3% to $6.46. The Columbus, Ohio-based bank announced on Monday that it would raise roughly $1.2 billion, mainly through a common stock offering in order to repurchase preferred stock through Treasury's Troubled Asset Relief Program (TARP).

Large-cap regional bank stocks including

Marshall & Ilsley



Regions Financial

(RF) - Get Report


SunTrust Banks

(STI) - Get Report

also continued to decline on Tuesday. The three banks are among banks still holding TARP funds that will likely need to raise substantial capital.

Goldman Sachs

(GS) - Get Report

, Citi,

JPMorgan Chase

(JPM) - Get Report


Morgan Stanley

(MS) - Get Report

shares were all falling at last check.

-- 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.