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Fannie, Freddie shares fall after report of bailout

NEW YORK (Reuters) - Shares of mortgage finance companies Fannie Mae FNM.N and Freddie Mac FRE.N dropped in after-hours trade on Friday, on concerns any U.S. Treasury rescue plan could wipe out shareholder value.

The Wall Street Journal reported after the closing bell that the U.S. Treasury is close to finalizing a plan to backstop the two government-sponsored enterprises.

Fannie shares fell 16.9 percent to $5.85, while Freddie’s shares fell 7 percent to $4.74.

Reporting by Kristina Cooke

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