Updated from 3:23 p.m. EDT
Bank stocks finished mixed Monday, the deadline for firms to submit capital plans after the government's stress tests, after
said it would commence its $58 billion stock swap.
Citigroup, which came under fire last week following a report that the Federal Deposit Insurance Corp. was pushing for a shake-up of
top management, is set to start a $58 billion stock swap later this week.
While reports said the swap was delayed by the FDIC's questioning of CEO Vikram Pandit's leadership, Citigroup said Monday afternoon that press reports suggesting that federal banking agencies delayed these approvals "are entirely incorrect."
Citigroup shares, which were removed from the
Dow Jones Industrial Average
and replaced by the
Monday, relinquished early gains and finished down 1.2% to $3.42. Travelers shares, meanwhile, ended 1.1% higher at $43.92.
Monday also was the
deadline for banks ordered to raise capital after government stress tests to submit detailed plans to regulators.
The Wall Street Journal
noted banks must deliver an equally in-depth review of their management, which has caused a headache for several banks, according to the report.
Several top banks, including Citigroup and
Bank of America
, have had to assess top executives and directors "to assure that the leadership of the firm has sufficient expertise and ability to manage the risks presented by the current economic environment," regulators said when they released the stress-test results. Bank of America recently replaced several directors and at least one senior executive, while Citigroup added a few new directors to its board.
BofA shares rose 1.7% to $12.06. Among other bank stocks,
added 2.4%, and
In addition, a report Monday said banks that have received two rounds of bailout money will be required to submit any major changes to executive pay for approval by a new federal official who will monitor compensation,
The New York Times
reported, citing two government officials.
American International Group
and its finance arm,
, which all received two rounds of government money, will face the strictest scrutiny from Kenneth Feinberg, the new federal official charged with vetting compensation, according to the
shares lost 1.5% after the U.K. bank confirmed Monday it has held talks with
about its Barclays Global Investors business. Barclays also said it has received proposals for BGI and its iShares business from a number of parties.
In a statement Monday, Barclays said the discussions aren't yet concluded and "there are a number of significant open issues which could affect the nature and terms of any transaction." The stock was down 1.5% to $18.35.
Among analyst moves, Keefe, Bruyette and Woods analyst Joel Jeffrey raised fiscal third-quarter and full-year earnings estimates for
on stronger trading volumes than expected and an improved overall market environment in May.
Jeffrey increased his fiscal third-quarter target to 28 cents from 22 cents a share, his full-year 2009 target to $1.08 from 99 cents a share, and the 2010 full-year estimate to $1.25 from $1.19 a share. Jeffrey also increased the stock price target for TD Ameritrade to $18 from $15.50. Shares were finished up 2.1% to $19.21.