Moody’s cuts Fannie-Freddie ratings

"Fannie Mae (FNM) and Freddie Mac (FRE) plunged anew after Moody’s cut its ratings on the companies’ preferred stock, citing rising losses and the possibility of a government bailout of the government-sponsored mortgage finance companies. Fannie Mae, the better capitalized of the two, fell 7%, while smaller Freddie Mac plunged 17% in late morning New York trading."