Haitian police found 495 corpses when muddy floodwaters began to recede on Friday from the port city of Gonaives following days of heavy rain from Tropical Storm Hanna, an official said.

The government has prepared a plan to take control of troubled mortgage giants Fannie Mae and Freddie Mac, officials told the two companies, according to three sources familiar with the conversations.

Beach vacationers in the Carolinas packed up and headed inland Friday and authorities in the Florida Keys ordered the beginning of evacuations there as two storms threatened the U.S. East Coast.

Despite a 48-hour contract extension, negotiations between Boeing Co. and Machinists union officials have failed and the union says a strike is set to begin at 12:01 a.m. PDT Saturday.

The U.S. and Libya sealed a historic turnaround in their troubled relations with a meeting Friday between Secretary of State Condoleezza Rice and Libyan leader Moammar Gadhafi.