Stocks jump on reports of plan for bad bank assets (AP)

NEW YORK – Stocks are sharply higher following media reports that the Obama administration is considering a plan to set up banks that could absorb bad assets from financial companies.

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The rise in financial stocks is giving the overall market a lift. Investors have been worrying that banks won't be able to resume more normal levels of lending without somehow dumping or walling off the bad debt that is corroding their balance sheets . And the economy can't recover from a yearlong recession without improvements in lending and consumer confidence. The Dow Jones industrials are up 142, or 1.75 percent, at 8,317. Broader indexes are also higher.

Full Story: Stocks jump on reports of plan for bad bank assets (AP)