The prospect of some rare good news for the stricken US mortgage market has boosted stocks on Wall Street this afternoon.
The Wall Street Journal newspaper reported today that private equity firm TPG and other investors are close to investing $5bn into Washington Mutual, a big mortgage lender.
US stocks were also lifted by a flurry of other deal moves and the start of earnings season in the US.
Less than an hour after the opening bell the Dow Jones industrial average was up around 50 points to 12,660.
The injection of new capital into Washington Mutual would allow the savings and loan provider to ease its capital requirements, according to the Wall Street Journal, which cited people close to the matter.
Washington Mutual's market capitalisation on Friday was just under $9bn, after its shares dropped 11%.
