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Pimco's Gross: Government equity stake needed in GSE plan

NEW YORK (Reuters) - Any U.S. Treasury plan to shore up mortgage giants Fannie Mae and Freddie Mac would have to include some equity participation from the U.S. government, the manager of the world’s biggest bond fund said on CNBC on Friday.

Bill Gross, chief investment officer of Pacific Investment Management Co or Pimco, declined to comment on whether he had been approached by the government on Fannie and Freddie.

The Wall Street Journal reported on Friday that the U.S. Treasury Department is close to finalizing a plan to buttress Fannie Mae FNM.N and Freddie Mac FRE.N.

Reporting by Burton Frierson

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