What happens to your Freddie/Fannie stock if there is a Government "takeover"?

Question

I have heard that, if there is a government "takeover" of Fannie Mae and Freddie Mac, stock value will be "wiped out"... now does this mean that I would completely "lose" this stock or does this mean that only the "current value" is gone? I want to be able to hold onto the stock anticipating a rebound.

Answer 1

The beginning of a LONG list of Government fiscal s***w ups...and the little guy takes the hit-

Fasten your seat belts- the rides just beginning !!!!!

Answer 2

There is a good chance that the Gov't will nationalize Freddy And f***y.

Shareholders will be out of luck, Shares would be worth Wallpaper only.

Answer 3

Isn't the value wiped out already?

Do you really think you're going to make any money regardless of what happens?

FRE has already lost close to 90% of its value. Do you really think the stock is going to ever go up?

Answer 4

The value of the stock would be completely wiped out and the shares would be worth nothing.  Technically thats the case now.  Just like Enron or any other stock shareholders have no guarantees even though it is partially government subsidized.