Updated with closing stock prices




) --

Fannie Mae


Freddie Mac

were among the top performers of the financial sector Monday following the Treasury Department's decision to remove a cap on aid for the government-sponsored enterprises.

Fannie Mae


Freddie Mac

jumped 21% and 27%, respectively, after the Treasury Department Thursday removed the $400 billion financial cap on the money it will provide to both. The Treasury also said it will not require either to reduce the size of their mortgage-related investment portfolios next year, as previously planned.

The news came after a regulatory filing showed that top executives at

Fannie Mae and Freddie Mac

will each earn between $4 million and $6 million in 2009. Fannie Mae CEO Michael Williams and Freddie Mac CEO Charles Haldeman will each receive $900,000 in base salary, $3.1 million in deferred compensation, and up to $2 million each in incentive pay. A number of other top executives at both mortgage lenders will also receive compensation in the millions

Fannie Mae shares closed up 22 cents to $1.27, and Freddie Mac shares added 34 cents to $1.60. Meanwhile,

American International Group

(AIG) - Get Report

jumped 4.6% to $31.50 on the government's revised terms for the GSEs, apparently on hopes it too could modify agreements with U.S. officials.

Elsewhere, bank stocks were trading lower in the absence of any company- or sector-specific news.

Goldman Sachs

(GS) - Get Report

dipped 0.1% to $163.76,

Bank of America

(BAC) - Get Report

was off 0.3% at $15.29, and


(C) - Get Report

closed up 1.2% at $3.39.


JPMorgan Chase

(JPM) - Get Report

dipped 0.4% to $41.72,

Wells Fargo

(WFC) - Get Report

fell 1.3% to $26.75, and

Morgan Stanley

(MS) - Get Report

lost 1.1% to $29.29.

Credit card issuers were trading lower, with

Capital One Financial

(COF) - Get Report

down 0.9%,

American Express

(AXP) - Get Report

fell 1.5% and

Discover Financial

(DFS) - Get Report

down 0.7%.

-- Written by Robert Holmes in Boston


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