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Crunch time for Fannie and Freddie?

Report: Treasury finalizing bailout plan

Editor's note: This article was published on Friday, Sept. 5. Watch Inman News today for updates to this article.Fannie Mae and Freddie Mac will reportedly get an injection of taxpayer capital and see a shakeout of senior management under a plan being finalized by the Treasury Department, the Wall Street Journal reported, citing unnamed sources.Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson were meeting today with top executives of Fannie Mae and Freddie Mac and the companies' new regulator, the Federal Housing Finance Agency, the Journal said.An official announcement on the plan, which the Journal said is expected to involve a "creative use" of the Treasury Department's newly expanded authority to take a stake in the companies, could come over the weekend. A Treasury spokeswoman said officials were "making progress" but would not comment further.Shares of the companies plummeted in after-hours trading over fears that if the Treasury Depa...

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