Fannie, Freddie: Plunge then rebound

By Chris Isidore, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- Shares of mortgage finance giants Fannie Mae and Freddie Mac plunged and then came back on Thursday after new reports that the federal government may have to take over the troubled firms.

Fannie fell as much as 87 cents or 20%, to $3.53, but then rebounded to a 10.2% gain by the end of the session. Freddie shares tumbled as much as 99 cents, or 30%, to a record low before rebounding to a 2.8% loss. The lows of the day represented a 20-year low for Fannie (FNM, Fortune 500) when adjusted for splits, and a record low on that basis for Freddie (FRE, Fortune 500), which started trading in 1989.

Fannie, Freddie: Plunge then rebound....