NEW YORK (TheStreet) -- Shares of American International Group (ABC) - Get Report led financial stocks into the green during Thursday's foreshortened Christmas Eve session.

AIG stock was rising 3.7% to $30.49 in the early going Thursday. On Tuesday, after announcing that it had shelved plans to sell-off its Chartis unit in an IPO, the stock shot higher before giving back some of those gains Wednesday.

The insurer and its outspoken boss, Robert Benmosche, have also been locked in a battle with the Obama administration over executive pay.

AIG isn't the only bailed-out financial giant facing thorny compensation issues. On Thursday,

Fannie Mae

and

Freddie Mac

indicated in filings with the

Security and Exchange Commission

that their respective CEOs could take home as much as $6 million in salary and bonuses for 2009 -- a revelation that's sure to spark further controversy.

Shares of Fannie were down a penny to $1.04 at 11:00 a.m EDT Thursday, while Freddie had lost 3.8% to $1.26. The firms have taken a combined $111 billion from the federal government since the financial crisis began.

Elsewhere, bank stocks were up moderately in light Christmas Eve trading. Shares of

Citigroup

(C) - Get Report

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, which was finally able to pay back $20 billion in TARP aid Wednesday after a contentious process, rose 1% to $3.33. Citigroup also received government approval Wednesday to pay executives what it wants.

Wells Fargo

(WFC) - Get Report

also removed itself from the government dole Wednesday, buying back $25 billion in securities it had sold to the government. Its shares rose 0.5% to $26.97 during the Christmas Eve session.

JPMorgan Chase

(JPM) - Get Report

shares rose 0.3% to $42.69, and

Bank of America

(BAC) - Get Report

rose 0.2% to $15.23.

-- Written by Scott Eden in New York

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