Stocks were up this morning as speculation spread that Congress would reach an agreement soon on a $700 billion bailout plan for financial institutions’ bad debt, Bloomberg reported.

As of 10:15 a.m., the Dow Jones industrial average was up 209.56 points to 11,034.73. Banks are leading the way, with Bank of America Corp. shares up 4.1 percent to $34.42 and Wells Fargo & Co. stock up 5.82 percent to $14.27. Other local companies’ shares rose as well, including Principal Financial Group Inc., which was up 6.8 percent to $44.86.

After President George Bush’s speech last night, House Financial Services Committee Chairman Barney Frank told reporters that House and Senate Democrats had reached a deal on the bailout legislation. Democratic Congressman Paul Kanjorski of Pennsylvania also told CNBC that “the package is basically done.”

Meanwhile, Washington Mutual Inc., hurt by mortgage losses, continues to seek a potential takeover, and is now approaching private equity firms after other companies have shown reluctance, Reuters reported.

After Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. showed resistance to a takeover deal, WaMu has approached Carlyle Group and Blackstone Group LP, which could team up with Texas billionaire and bank investor Gerald J. Ford in a deal, according to sources familiar with the situation.