Fannie, Freddie stock takes nose dive
Common shares of twin mortgage buyers down more than 80% apiece at end of first trading session following government rescue plan.
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. 
-
Not even ultra-dapper President Obama could help Hartmarx, the Chicago-
based clothing maker. More -
The company has gone to the chickens despite producing 42 million dozen table eggs per year. More -
This Bay-area town sought assistance after plunging property tax revenue left coffers empty. More -
The bloom is off this celebrity florist as corporate budgets for flower arrangements disappear. More -
Isn't it ironic that a company with a mission to help others avoid bankruptcy was unable to help itself? More
