Bloomberg: Paulson Says No Plans to Add Cash to Fannie, Freddie

"Paulson and Congress last month brokered a plan to bolster the two government-sponsored enterprises that includes giving Treasury the right to buy their shares. Fannie and Freddie, which account for almost half of the $12 trillion mortgage market, reported losses three times worse than estimated, prompting some analysts to predict that Paulson will have to act". "Shares in Fannie and Freddie have plummeted more than 80 percent this year on concern they don't have sufficient capital to withstand record foreclosures on the $5.2 trillion of mortgages they own or guarantee. Bill Gross, manager of the world's biggest bond fund at Pacific Investment, last week said the Treasury will probably be forced to buy as much as $30 billion of preferred shares in the two".