Crunch time for Fannie and Freddie?

Report: Treasury finalizing bailout plan

Fannie Mae and Freddie Mac will reportedly get an injection of taxpayer capital and be subjected to a shakeout in senior management under a plan being finalized by the Treasury Department today, 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.