Updated from 3:04 p.m. EDTBank stocks reversed ground and finished higher after Treasury Secretary Timothy Geithner told a Congressional Oversight Panel that some firms could be allowed to repay government bailout funds. Citigroup ( C), which was among the worst performing financial stocks earlier Tuesday ahead of its annual meeting, rallied 10.2% to close at $3.24. Ahead of the meeting, The Financial Times reported that senior officials at the Federal Deposit Insurance Corp. privately have discussed who might replace CEO Vikram Pandit if the bank needed more government aid. During his testimony on Capitol Hill, Geithner said that a "vast majority" of banks have more capital than needed, but cautioned that any buyout of the government's preferred equity stakes bought through the Troubled Asset Relief Program would be left to bank regulators. Still, his remarks prompted the turnaround in Citigroup shares. Most other major banks reversed earlier losses as well. Wells Fargo ( WFC) gained 10.7%, JPMorgan Chase ( JPM) rose 9.6%, and Bank of America ( BAC) climbed 9.2%. Elsewhere, several other financial stocks were mixed after reporting quarterly earnings. Bank of New York Mellon ( BK) shed 0.2% after the bank reported a 57% drop in first-quarter profit and said it is slashing its dividend to 9 cents from 24 cents.