Updated from 12:01 p.m. ET

Financial stocks were mixed in trading Monday, as investors awaited additional news of a government bailout for the sector.

Treasury Secretary Timothy Geithner is expected to reveal on Tuesday a retooling of federal efforts to shore up the banking system. Reports indicate that the government is considering creation of an "aggregator bank" that would buy banks' bad assets and other initiatives to help homeowners. Also at issue Monday is speculation about reform of mark-to-market accounting practices, which value assets according to their purchase price.

The KBW Bank Index was rising 2.2% to 31.04, and the

Financial Select Sector SPDR

(XLF) - Get Report

ETF was gaining 1.3% to $9.92.

Dow Jones Industrial Average

components

Bank of America

(BAC) - Get Report

and

Citigroup

(C) - Get Report

were roaring to the upside. The two companies have each received a $45 billion cash infusion, along with government guarantees of their assets, under the Treasury Department's Troubled Asset Relief Program. The two companies are the largest U.S. recipients of government aid.

BofA was the Dow's biggest gainer, rising 12.4% to $6.89, and Citi jumped 1% to $3.95.

Outside the U.S., British bank

Barclays

(BCS) - Get Report

was gaining 11% to $6.99 after reporting fourth-quarter earnings that beat analysts' expectations. The results were bolstered by a one-time tax-related gain stemming from its purchase of parts of bankrupt brokerage Lehman Brothers, but management said the company is well positioned to handle a difficult year ahead.

Back in the U.S., Dow component

JPMorgan Chase

(JPM) - Get Report

, on the other hand, was edging down 1.3% to $27.28.

American Express

(AXP) - Get Report

, another member of the index, was shedding 1% to $17.75.

Former investment banks

Goldman Sachs

(GS) - Get Report

and

Morgan Stanley

(MS) - Get Report

were likewise down slightly. Goldman Sachs CEO Lloyd Blankfein said Monday in an op-ed article in the

Financial Times

that mark-to-market accounting and other risk-assessment mechanisms should remain in place.

Goldman was up 1.4% at $97.89, and Morgan Stanley gained 3.4% to $23.61.