Updated with stock price moves




) --

Wells Fargo

(WFC) - Get Report

was among the winners of the financial sector Tuesday after the bank became the latest to announce it would repay government bailout funds.

Wells Fargo

late Monday said it would repay the government's $25 billion preferred equity investment after completing a stock offering, becoming the last of the major banks to repay the U.S. bailout from the height of the financial crisis. The announcement came hours after


(C) - Get Report

said it would repay $20 billion to the U.S. government.

Following the bank's announcement, Keefe Bruyette & Woods analysts upgraded Wells Fargo to market perform from underperform and raised their price target to $28 from $24. Deutsche Bank upgraded the stock to buy from hold and raised its price target to $36 from $29.

Meanwhile, FBR Capital Markets reiterated the firm's underperform rating on Wells Faro shares, but raised its price target to $21 from $20, saying the repayment is a near-term positive, but valuation remains too rich given headwinds from elevated credit costs.

Early Tuesday,

Wells Fargo

priced a $10.65 billion offering of 426 million shares of common stock at $25 a share. Wells Fargo shares were lately up 65 cents, or 2.6%, to $26.14.

In other bank news,

The Wall Street Journal

reports that

Bank of America

(BAC) - Get Report

has suffered a setback in its search for a replacement for outgoing CEO Ken Lewis. Late Monday, the paper reported that Robert Kelly, CEO of

Bank of New York Mellon

(BK) - Get Report

would not leave to head up Bank of America.

With Kelly's decision to withdraw from consideration over compensation, the


said Bank of America's CEO search is focused on two internal candidates, Chief Risk Officer Gregory Curl or Brian Moynihan, president of consumer and small business banking, citing people familiar with the situation.

Bank of America shares were lately down 1.9% to $15.33.

Bank of America will also be among a handful of financial institutions reporting charge-off and delinquency data for November. Already,

Discover Financial

(DFS) - Get Report

said net charge-offs rose to 8.98% in November from 8.54% in October, while the total delinquency rate fell to 5.65% from 5.72% the month prior.

Capital One Financial

(COF) - Get Report

said charge-offs rose to 9.6% last month from 9.04% in October, while the delinquency rate increased to 5.87% from 5.72% in October.

Discover shares slipped 0.6% to $16.40, and Capital One fell 1.8% to $40.31. Citigroup,

American Express

(AXP) - Get Report

and Bank of America will report credit card metrics later in the session.

Among analyst moves, UBS initiated coverage of several financial stocks with a neutral rating, including

Huntington Bancshares

(HBAN) - Get Report


TCF Financial



Valley National

(VLY) - Get Report


Bank of Hawaii

(BOH) - Get Report


Commerce Bancshares

(CBSH) - Get Report

. Each stock was trading lower, with Huntington leading the way down with a loss of 2.8%.

UBS also initiated coverage of

First Horizon

(FHN) - Get Report



(SNV) - Get Report


Marshall & Isley



City National



Zions Bancorp

(ZION) - Get Report

with a sell rating. Of those names, Marshall & Isley slumped 4% while Synovus tacked on nearly 1%.

Elsewhere, Deutsche Bank upgraded shares of


(BBT) - Get Report

to buy from hold and raised its stock price target to $32 from $27. Still, BB&T shares dipped 0.5% to $26.09.

Meanwhile, William Blair lowered fourth-quarter and 2010 full-year earnings for

Goldman Sachs

(GS) - Get Report


Morgan Stanley

(MS) - Get Report

, forecasting a more-pronounced slowdown in trading activity, particularly fixed income trading, than originally anticipated.

In other Goldman news,


reports that an institutional investor is suing the bank, claiming the firm is preparing to pay out improper bonuses. The lawsuit, filed with the New York Supreme Court by the Security Police and Fire Professionals of America Retirement Fund, accuses Goldman executives, including CEO Lloyd Blankfein, of "blindly" rewarding executives "for corporate performance that has absolutely nothing to do with the skill of the company's employees."

The lawsuit also states that Goldman is estimated to issue payouts in excess of $22 billion, the


report said. Goldman shares were down 1.6% to $163.45, and Morgan Stanley was falling 0.4% to $30.04.

-- Written by Robert Holmes in Boston


Follow Robert Holmes on


and become a fan of TheStreet.com on