The historic takeover of Fannie Mae and Freddie Mac, which could come as soon as Sunday, moved to the forefront of the presidential campaign Saturday as candidates and congressional leaders seized on the enormous implications for taxpayers and the economy.

The U.S. government plans to take over Fannie Mae <FNM.N> and Freddie Mac <FRE.N> and all shareholders of the two mortgage giants will take a hit, an influential lawmaker said on Saturday.

By John Poirier and Patrick Rucker

Mortgage giants Fannie Mae and Freddie Mac — despite their robust cadre of economists and mortgage experts — failed to heed warnings that the most dramatic housing bubble in U.S. history would burst.

Fannie Mae <FNM.N> and Freddie Mac <FRE.N> shareholders, including preferred stockholders, will not fair well under a proposed U.S. Treasury takeover of the two housing finance companies, House Financial Services Committee Chairman Barney Frank told Reuters on Saturday.

WASHINGTON (Reuters) - Fannie Mae <FNM.N> and Freddie Mac <FRE.N> shareholders, including preferred stockholders, will not fair well under a proposed U.S. Treasury takeover of the two housing finance companies, House Financial Services Committee Chairman Barney Frank told Reuters on Saturday.

The historic takeover of Fannie Mae and Freddie Mac, which could come as soon as this weekend, moved to the forefront of the presidential campaign Saturday as candidates and congressional leaders seized on the enormous implications for taxpayers and the economy.

An outline of a government takeover of Fannie Mae and Freddie Mac is expected Sunday. The move could leave shareholders with nothing.

U.S. House Financial Services Committee Chairman Barney Frank said on Saturday that the U.S. Treasury Department plans to ensure the stability of mortgage finance giants Fannie Mae <FNM.N> and Freddie Mac <FRE.N>.

WASHINGTON (Reuters) - U.S. House Financial Services Committee Chairman Barney Frank said on Saturday that the U.S. Treasury Department plans to ensure the stability of mortgage finance giants Fannie Mae <FNM.N> and Freddie Mac <FRE.N>.

The U.S. government plans to put government sponsored mortgage finance companies Fannie Mae <FNM.N> and Freddie Mac <FRE.N> under federal control, the New York Times and Washington Post newspapers reported late Friday, in what could be the largest financial bailout in the nation's history.

By Glenn Somerville and Al Yoon

The U.S. government plans to put troubled mortgage finance companies Fannie Mae and Freddie Mac under federal control, according to published reports.

The U.S. Treasury Department is close to finalizing a plan to buttress mortgage finance companies Fannie Mae <FNM.N> and Freddie Mac <FRE.N>, The Wall Street Journal reported on Friday.

By Glenn Somerville and Al Yoon