NEW YORK ( TheStreet) -- Financial stocks were trading down on Wednesday despite a broader market rally.

The Financial Select Sector SPDR ( XLF) was down 2 cents to $15.99.

The big winner Wednesday was M&T Bank ( MTB - Get Report), which was trading up $1.07, at $87.85, on news that a Citigroup ( C), analyst raised his estimates on the bank as a result of its impending deal with Wilmington Trust ( WL).

The biggest loser of the day is American International Group ( AIG - Get Report), which is trading down $1.62 to $57.31. It was reported that the insurer paid out $145 million in a multi-state workers compensation probe settlement and also failed to report $18.7 billion of policyholder guarantees at two property-casualty subsidiaries in 2008.

AIG saw gains earlier this week after announcing 36 banks had lined up to offer it a $4.3 credit line.

Losers also include Goldman Sachs ( GS - Get Report) and Morgan Stanley ( MS - Get Report), which had their estimates cut by Calyon Securities analyst Mike Mayo. Mayo lowered the banks' fourth quarter estimates on prospects for weaker fixed-income, currency and commodity revenue. Goldman's stock was trading down $1.57 at $167.73. Morgan Stanley was down 29 cents at $27.37.

--Written by Maria Woehr in New York.

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