Updated with closing stock prices
NEW YORK (
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.
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
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.
dipped 0.1% to $163.76,
Bank of America
was off 0.3% at $15.29, and
closed up 1.2% at $3.39.
dipped 0.4% to $41.72,
fell 1.3% to $26.75, and
lost 1.1% to $29.29.
Credit card issuers were trading lower, with
Capital One Financial
fell 1.5% and
-- Written by Robert Holmes in Boston
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