Updated from 12:51 p.m. ETFinancial stocks were falling sharply Tuesday, after Treasury Secretary Timothy Geithner detailed new government initiatives to help the sector. The KBW Bank Index was declining 13.9% to 26.74, and the Financial Select Sector SPDR ( XLF) exchange-traded fund was dropping 10.2% to $8.89. In a speech in Washington, D.C., Geithner said the Treasury will establish a Financial Stability Trust that would issue a "stress test" for major banks to evaluate potential future losses. Banks with more than $100 billion in assets will be subject to federal supervision and a stress test. Other provisions include a public-private investment fund that would aid financial firms in shoring up their balance sheets; an expansion of the Federal Reserve's previously announced Term Asset-Backed Securities Lending Facility, increased government support for small-business loans and a comprehensive housing program to prevent additional foreclosures.