Government take-overs?

Question

When a company gets taken over by government, does that mean the shares are now worthless or it just means new management?

Answer 1

Government takeovers spawn interest rate war between healthy, troubled institutions

Healthy Los Angeles financial institutions are being forced to offer above-market interest rates to compete with troubled savings and loans that have been taken over by the government, bank and S&L executives contend.

Answer 2

Assuming you are talking about banks being taken over by the FDIC, the answer is yes, the shares are worthless. The FDIC will sell the banks asset's and use the money to pay depositors and creditors.