Financial stocks on Tuesday shrugged off flat trading in the prior session, continuing their rally from last week's lows.

The NYSE Financial Sector Index finished 5.9% higher to 2,760, as Citigroup ( C) and JPMorgan Chase ( JPM) and Wells Fargo ( WFC) made gains.

Oppenheimer initiated coverage of several stocks, as bank analyst Chris Kotowski took over for the bearish Meredith Whitney, who left to start her own firm. Kotowski rated Citi and JPMorgan a perform and Morgan Stanley ( MS) and Goldman Sachs ( GS) an outperform.

Citi climbed 7.7% to $2.51, JPMorgan added 8.9% to $24.14, Morgan Stanley added 3.3% to $23.81 and Goldman climbed 5.4% $98.99..

American International Group ( AIG) shares climbed 15.7% to 96 cents, even as the embattled insurer came under heavy political fire for bonuses paid to executives in its financial services division. Attorney General Andrew Cuomo said AIG paid bonuses of $1 million or more to each of 73 employees, including 11 who no longer work for the company. He had subpoenaed for the information on Monday.

Bank of America ( BAC) shares were in the red much of the day, but rebounded in the closing bell rally to finsh up 1.5% to $6.27.
This article was written by a staff member of