U.S. stocks open sharply lower as Fannie, Freddie plunge

NEW YORK - Stocks are falling sharply as investors focus on troubles at mortgage companies Fannie Mae and Freddie Mac and watch oil prices climb further into record territory.

Fannie and Freddie each fell more than 40 percent Friday on growing speculation that a government bailout is needed. A collapse of the two financiers would cause further shock to the financial system, and trigger more losses to banks and brokerages with significant holdings of mortgage-backed securities.

The Dow Jones industrial average is down 150 points at the 11,078 level.

(Agencies)