Financials Winners and Losers: AIG

AIG is the biggest gainer among financial stocks Tuesday, as the market endorses its plan to shelve a Chartis IPO.
Publish date:

(Financial Winners & Losers story updated for closing stock prices)



) --

American International Group

(AIG) - Get Report

was one of the winners among financial stocks Tuesday after word emerged that the insurer would

cancel the planned IPO of its Chartis unit


On Tuesday, AIG shares jumped by nearly 11%, or $2.99, to end the session at $31.05.

In news related to AIG's executive-bonus soap opera, the Obama administration's pay czar, Kenneth Feinberg, approved a request by AIG to grant one of its top executives a long-term compensation package that includes stock options with a current value of $3.26 million, and an additional incentive award of up to $1 million. The executive wasn't named in the report.

Elsewhere Tuesday, internationally-focused news drove the best and worst performances in the financial sector.

State Street Corp.

(STT) - Get Report

announced a deal to

acquire the securities services arm

of Italian banking giant

Intesa Sanpaolo

. State Street shares gained 3.8%, or $1.60, to close at $43.86 Tuesday.

Shares of

Charles Schwab

(SCHW) - Get Report

also advanced as the rumor mill continued to churn, pointing to the discount brokerage as potential acquirer of

E*Trade Financial


. Schwab shares gained 50 cents, or 2.7%, to close at $19.06.

Also from overseas, the FBI was investigating a gang of Russian computer hackers who reportedly stole millions of dollars from


(C) - Get Report

, according to the

The Wall Street Journal



denied the report

, but the megabank's shares still fell more than 2.3%, or 8 cents, to $3.34, even as U.S. stocks gained ground on

encouraging news from the U.S. housing market. Citi had the biggest loss among the major U.S. banks.

The story was mixed among most of the major U.S. banks. Wells Fargo

(WFC) - Get Report

shares were down 0.7%, or 18 cents, to close at $27.16.

Among other megabanks, shares of

JP Morgan

(JPM) - Get Report

gained 0.1%, or 4 cents, to $41.94, and

Bank of America

(BAC) - Get Report

added 0.3%, or 5 cents, to $15.33.

Goldman Sachs

(GS) - Get Report

lost 0.5%, or 85 cents, to $164.60, and

Morgan Stanley

(MS) - Get Report

declined 0.2%, or 6 cents, to $29.60.

-Reported by Eric Rosenbaum in New York.

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