Senior Washington officials said that Fannie Mae and Freddie Mac, the nation’s main backers of mortgages, had sufficient capital, as their stocks plunged to 17-year lows.

Less than two months after announcing that it may sell its appliance business, General Electric said its “primary focus” would be pursing a spinoff of its entire Consumer and Industrial unit.

The automaker said that it would build its hybrid sedan in the U.S. for the first time as it tries to meet rising demand.

The mortgage lenders at the heart of the nation’s housing finances fell to their lowest share prices in 17 years on concern that the companies could face the possibility of a government bailout.

The company had previously sought to sell the $7 billion appliance arm, but is now including lighting and other industrial products in the sale.

A firestorm of anxiety over the ability of U.S. mortgage giants Fannie Mae and Freddie Mac to get the capital they need to survive sent their debt and stocks plummeting on Thursday.

General Electric said it is focusing on spinning off its consumer and industrial businesses, which make light bulbs and Energy Star household appliances.

The hotel operator said that second-quarter earnings dropped to $157 million as the weaker U.S. economy dragged down demand, a trend the company expects will extend into next year.

Retailers said that sales at stores open at least a year rose higher than expected in June thanks to aggressive summer promotions, government stimulus checks and warm weather.

The deal to buy the old-line specialty chemical maker, made with the help of Warren E. Buffett, was one of the largest this year.