Updated from 3:55 p.m. EST

Financial stocks rebounded Wednesday, as big banks benefitted from the federal government's sharing more details about the "stress tests" it will employ to determine if they are sufficiently capitalized.

Citigroup

(C) - Get Report

,

Bank of America

(BAC) - Get Report

and more than a dozen other institutions that have received billions from the Treasury Department's $700 billion Troubled Asset Relief Program were subject to the tests, which were expected to be administered Wednesday.

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The tests, part of the revamped

bailout plan

unveiled by Treasury Secretary Timothy Geithner earlier this month, will help regulators decide whether the banks may need additional assistance so that they can carry out the critical mission of boosting lending to customers, a key ingredient to the economic turnaround.

The

Federal Reserve

, in a statement Wednesday, said major U.S. banking institutions have capital in excess of what regulators consider

well capitalized

. By the end of April, regulators will look at how institutions with assets exceeding $100 billion would perform under two scenarios: the baseline conditions expected by economists and a more adverse condition.

Financial stocks were mixed in trading before regulators, including the Treasury, Fed and Federal Deposit Insurance Corp. issued press releases with details of the program, which Treasury Secretary Timothy Geithner had only broadly outlined earlier this month. In the afternoon, Citi were down 3.1% to $2.52 and BofA shares were up 9.1% to $5.16.

Wells Fargo

(WFC) - Get Report

shares were up 3% to $13.44 and

JPMorgan Chase

(JPM) - Get Report

shares were up 3.4% to $21.73.

Goldman Sachs

(GS) - Get Report

shares cut earlier losses, but still were down fractionally to $89.92.

Morgan Stanley

(MS) - Get Report

shares were up 1.4% to $21.76.

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The NYSE Financial Sector Index recently was up fractionally to 2,596.61.

On the flip side,

Allstate

(ALL) - Get Report

, which cut its

dividend

late Tuesday, lost 5.7% to $17.57.

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