Financial Winners and Losers: AmEx

Financial stocks ended mostly higher Tuesday after the Treasury Department allowed 10 U.S. banks to repay $68 billion in government bailout money.
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Updated from 2:38 p.m. EDT

Financial stocks ended mostly higher Tuesday after the Treasury Department

gave its blessing to 10 of the largest U.S. banks to repay $68 billion in government bailout money.

Treasury has notified the institutions that they are now eligible to complete the repayment process. Combined with repayments received to date from other institutions, Treasury will have received approximately $70 billion in refunded investments made through the Troubled Asset Relief Program. Companies that repay their preferred stock have the right to repurchase the warrants Treasury holds at fair market value.

While the Treasury did not name the 10 banks that will return TARP money, each issued a press release noting it had received Treasury's approval to do so.

JPMorgan Chase

(JPM) - Get Report

said it has been approved to repay the full $25 billion preferred investment,

Capital One

(COF) - Get Report

confirmed it will repurchase $3.55 billion in preferred shares,

US Bancorp

(USB) - Get Report

said it has approval to redeem $6.6 billion.

In addition,

BB&T

(BBT) - Get Report

said it will pay approximately $3.13 billion to repurchase preferred stock,

Bank of New York Mellon

(BK) - Get Report

said it was approved repurchase of the $3 billion TARP capital investment,

Northern Trust

(NTRS) - Get Report

said it has approval to redeem $1.57 billion in preferred shares and

State Street

(STT) - Get Report

will redeem $2 billion in preferred stock.

Rounding out the complete list,

Morgan Stanley

(MS) - Get Report

said it will repay $10 billion in TARP funds,

American Express

(AXP) - Get Report

spokeswoman confirmed the company is eligible to repay $3.4 billion, and

Goldman Sachs

(GS) - Get Report

confirmed it would repurchase 10 million preferred shares.

Among the winners, American Express added 5%, Capital One rose 2.6%, BB&T added 2.4%, State Street rose 2.3%, Northern Trust climbed 1.8%, Bank of New York Mellon closed 0.9% higher, and Goldman Sachs tacked on 0.7%. Meanwhile, Morgan Stanley slid 1.3%, US Bancorp shed 0.9%, and JPMorgan dipped 0.4%.

Late Monday, the

Federal Reserve

approved capital-raising plans required by the government's stress tests submitted by 10 of the largest U.S. banks. "As supervisors, we will be working with the institutions to ensure their plans are implemented quickly and effectively," the central bank said in a statement.

Those 10 banks include

Bank of America

(BAC) - Get Report

,

Citigroup

(C) - Get Report

,

Fifth Third Bancorp

(FITB) - Get Report

,

KeyCorp

(KEY) - Get Report

, Morgan Stanley,

PNC Financial

(PNC) - Get Report

,

Regions Financial

(RF) - Get Report

,

SunTrust

(STI) - Get Report

,

Wells Fargo

(WFC) - Get Report

and

General Motors'

GMAC financing arm.

More government stress tests could be on the way, if the Congressional Oversight Panel has its way. The panel released a report Tuesday that argues regulators should continue to perform stress tests on the largest U.S. banks if the monthly unemployment rage were to continue to increase. Stress testing should also be repeated so long as banks continue to hold large amounts of toxic assets on their books, the panel said.

The report also calls for internal stress tests by banks between formal government tests, as well as allowing regulators to have the ability to use stress tests in the future when they believe that doing so would help to promote a healthy banking system.

In other bank news,

BlackRock

(BLK) - Get Report

could announce Wednesday it is

buying the fund business

of

Barclays

(BCS) - Get Report

for $12 billion to $13 billion in cash and stock, according to

Bloomberg

. The acquisition would be BlackRock's largest acquisition and the largest in the asset-management industry.

Barclays shares were higher by 4.6% to close at $19.19, and BlackRock jumped 7.6% to $182.14.

Elsewhere,

The Swiss government

said Tuesday it is holding talks with several potential buyers of its $5.5 billion stake in

UBS

(UBS) - Get Report

. The six-month lockup period for its mandatory convertible notes expired Tuesday, leaving the government free. UBS shares eked out a 0.8% gain, finishing at $13.85.

Among analyst moves, Citigroup downgraded

Hartford Financial

(HIG) - Get Report

to hold from buy, sending shares 3.5% lower to end the day at $14.28.