NEW YORK (TheStreet) -- Citigroup (C) - Get Report shares were among the winners in the financial sector Wednesday as two prominent hedge funds disclosed that they had increased their stakes in Citi during the fourth quarter.

In regulatory filings with the

Securities and Exchange Commission

late Tuesday, George Soros' fund said it acquired 95 million Citigroup shares, up from zero in the previous quarter. John Paulson's fund, meanwhile, added 200 million shares to its already significant position in the troubled megabank.

Wednesday morning, Citigroup stock was changing hands at $3.37, up 1.7%.

Bank of America

(BAC) - Get Report

shares -- up 2% to $15.48 -- were also pacing financials a day after adding 4.6%. On Tuesday, the firm reported improving credit-card delinquency rates in January and the fewest number of late payments from users of its plastic in 12 months.

Among the other megabanks that appear to be facing

another looming mortgage-debt reckoning

,

JPMorgan Chase

(JPM) - Get Report

was down 0.2% to $39.98 and

Wells Fargo

(WFC) - Get Report

was falling 0.6% $27.22.

Elsewhere, online brokerage firms

TD Ameritrade

(AMTD) - Get Report

and

TheStreet Recommends

E*Trade

(ETFC) - Get Report

reported late Tuesday that their

monthly trading figures for January strengthened from December

. The former company's shares, trading at $17.40 Wednesday morning, up 0.5%, received an upgrade from an analyst at FBR Capital Markets.

E*Trade's beaten-down shares inched higher by a penny to $1.53.

Morgan Stanley

(MS) - Get Report

, meanwhile, saw its stock price shed 1.2% to $27.49 after a report in

The Wall Street Journal

indicated that the firm may have to forfeit to creditors some $2.4 billion worth of hotels in Japan. Values on those properties, bought by Morgan Stanley in 2007, have plunged amid the global commercial real-estate bust.

Shares of

Goldman Sachs

(GS) - Get Report

were also trading lower, down 0.24% to $157.03.

-- Written by Scott Eden in New York

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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.