CNBC Reporting Fed Takeover Of Fannie And Freddie - All Shareholders Likely Wiped Out

CNBC is reporting that top executives and board members were meeting in Washington today with regulators and that an announcement is expected tommorrow detailing the restructuring of Fannie Mae and Freddie Mac.

ALL shareholders - common and preferred - are expected to be WIPED OUT or diluted beyond recognition.

I'm thinking I remember reading somewhere that stuff like this was what precipitated the Great Depression.

I'm also beginning to wonder if my favorite Conspiracy Nut friend might have been right.

Had the Fed not gone on that rate-cutting spree after 9/11 the conditions that led up to this may have never happened ...

Related:
Fannie Diving After Hours - CNBC Video