Regional bank stocks surged this week on positive outlooks for next year. The Keefe Bruyette & Woods Bank Stock Index ( BKX.X), which tracks the largest 25 U.S. commercial banks, jumped 6% this week to close at $50.92. During the Goldman Sachs Financial Services conference on Tuesday and Wednesday, bank executives focused on capital management, including increasing dividends and stock buybacks, and improved lending conditions, according to a note by Goldman analysts on Wednesday. The government's progress on AIG and Citi likely means that it will focus its attention on regional banks that still hold TARP money early next year. SunTrust shares rose 7.1% this week. Regions Financial ( RF) also rose 6.3% over the past week.