Fannie, Freddie stock takes nose dive

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NEW YORK (CNNMoney.com) -- Investors in Fannie Mae and Freddie Mac common stock saw their stakes in the mortgage giants plummet in value Monday, a day after the government announced a dramatic rescue of the two companies.

On Sunday, the U.S. government assumed control of the twin mortgage buyers to help shore up the ailing U.S. housing market.

That sent shares of the two companies, which had fallen more than 80% so far this year ahead of Sunday's announcement, into a tailspin just after the opening bell Monday.

Fannie (FNM, Fortune 500) shares closed at 73 cents per share, down $6.31, an 89.63% drop in value. Freddie (FRE, Fortune 500) stock plunged 82.75% in value, closing at 88 cents per share, down $4.22 on the New York Stock Exchange.

The exchange had suspended pre-market trading of both common and preferred stock of the two institutions Monday to allow investors to digest the actions taken by the government over the weekend.

The NYSE would not comment on whether Freddie or Fannie was at risk of being delisted from the NYSE, but said it was monitoring all the rules that apply to companies that have seen the value of their stock evaporate overnight.

Despite the big dip at the open, shareholders may not be wiped out altogether. The way the takeover was structured allows for Fannie and Freddie stock to recover in value once the two companies are no longer under the government's control.