Government to seize control of Freddie Mac and Fannie Mae
In a stunning announcement, executives of both Fannie Mae and Freddie Mac were told that their companies are on the verge of government seizure and forced conservatorship.
The executive leadership and their respective boards were also informed they stand to be replaced if this happens. Should this announcement become reality, it bodes poorly for shareholders leaving their holdings virtually worthless. Yet, the companies will continue operations with the government backing their debt.
Tags: fannie mae, freddie mac, lending