Some mutual funds could be ravaged by the takeover, too, reports Joe Morris for Ignites. Top holders of Fannie and Freddie in the second quarter were Fidelity, Wellington and Dodge & Cox. All three raised their stakes the most between April and June, and could get hit now that their stocks are practically worthless.

Washington Mutual (WM) shares took a big hit in trading this morning after its CEO was ousted. The nation’s largest savings and loan has been ravaged by losses in sour mortgages, says the Associated Press. In July, they reported a $3 billion second-quarter loss, the largest in its history.

This morning’s big jump followed by a step back seems to indicate that investors are wondering whether this fix is just a Band-Aid on what’s really a larger problem that isn’t going to disappear quite so easily.

It’s all just a warning to hold your horses: the plan for a bailout of Fannie and Freddie by no means indicates that financials are back.