Updated from 10:05 a.m. EDT

Financial stocks opened sharply up Monday, as the Treasury Department unveiled a plan to help the sector sell toxic assets including pools of residential and commercial mortgage-related securities.

The Treasury envisions a public-private partnership it hopes will generate an initial $500 billion in purchasing power, which could eventually be expanded to $1 trillion. The program will use $75 billion to $100 billion in capital from the Troubled Asset Relief Program, combining the resources of the Federal Deposit Insurance Corp. and the Federal Reserve.

The Treasury hopes this capital will spur private investment, in a plan it says will hold risk and reward for both taxpayers and private sector players. There is some uncertainty, however, about whether private investors will participate, as some have expressed concern that legislators angry at Wall Street will place too many restrictions on investors accepting the government money.

The NYSE Financial Sector index climbed 9% to 2,960.52.

Shares of Bank of America ( BAC)were up more than 17% to $7.27. Citigroup ( C) shares rose 16.4% to $3.05. JPMorgan Chase's ( JPM) stock was up 14.4% to $26.48. Wells Fargo ( WFC) shares were rising

Goldman Sachs ( GS) shares were rising 9.8% to $106.96. Morgan Stanley ( MS) shares were up 14.2% to $23.12.

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