Going into this weekend it looks like the Freddie and Fannie will be swept up by the government. In a monumental move designed to protect the mortgage market from the failure of the two companies, which together hold or guarantee half of the nation’s mortgage debt. Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and James Lockhart, the companies’ chief regulator, met Friday afternoon with the top executives from the mortgage companies. This move will most likely wipe out the common shareholders….the stocks traded 20% lower in after hours.
