Updated with closing stock prices.

NEW YORK ( TheStreet) -- Financial stocks were mostly in the red on Monday, but a few outperformers included AIG ( AIG - Get Report) and American Express ( AXP - Get Report).

The Financial Select Sector SPDR Trust fell 0.2% to $14.42.

The stocks of all six of the largest U.S. banks fell on Monday. JPMorgan Chase ( JPM ) shares fell 1.7% to $39.08. Bank of America ( BAC) shares fell 2.6% to $13.24. Wells Fargo ( WFC) shares fell 0.2% to $25.53. U.S. Bancorp ( USB) shares fell 2.5% to $21.86. PNC Financial Services ( PNC) shares fell 3% to $51.47.

Citigroup ( C - Get Report) shares fell 0.9% to $3.87, despite a report out saying that the U.S. Treasury may not meet its target date of the end of 2010 to fully exit its stake in the bank.

Moody's Investor Services downgraded Anglo Irish Bank's senior unsecured rating by three notches to Baa3 from A3 and plans to keep the rating on review for further possible downgrade, it says. Moody's also downgraded covered mortgage bonds issued by Allied Irish Bank and Anglo Irish Bank's mortgage bonds to A2 from Aa2.

In the news, M&T Bank ( MTB - Get Report) shares sunk 7% to $84.24 after speculation ensued that merger discussions between the Buffalo-based regional bank and Banco Santander ( STD) had stalled again.

Elsewhere shares of AIG surged 4.7% to $38.20. The U.S. Treasury is looking to finalize a plan to exit its stake in the insurance giants, media reports said.

Shares of First Horizon National ( FHN - Get Report) rose 0/6% to $10.97.

A Memphis local newspaper cited comments from its CEO Bryan Jordan that the recovering regional bank is apparently looking to take part in the upcoming bank consolidation expected over the next few years.

TheStreet spoke with senior management of First Horizon back in early August, who said that the bank was considering acquisitions in markets both within and outside of Tennessee.

Also on Monday, American Express shares rose 0.7% to $43.44.

--Written by Laurie Kulikowski in New York.

To contact the writer of this article, click here: Laurie Kulikowski.

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