(Financial Winners & Losers story updated for closing stock prices)
NEW YORK (
American International Group
was one of the winners among financial stocks Tuesday after word emerged that the insurer would
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.
announced a deal to
of Italian banking giant
. State Street shares gained 3.8%, or $1.60, to close at $43.86 Tuesday.
also advanced as the rumor mill continued to churn, pointing to the discount brokerage as potential acquirer of
. 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
, 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
shares were down 0.7%, or 18 cents, to close at $27.16.
Among other megabanks, shares of
gained 0.1%, or 4 cents, to $41.94, and
Bank of America
added 0.3%, or 5 cents, to $15.33.
lost 0.5%, or 85 cents, to $164.60, and
declined 0.2%, or 6 cents, to $29.60.
-Reported by Eric Rosenbaum in New York.
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