Fannie Mae & Freddie Mac Shareholders Look Doomed (FNM, FRE) By Dividend.com Staff September 6th, 2008 Related Articles RELATED ARTICLES * Don't Bottom-Fish for Fannie Mae and Freddie Mac (FNM, FRE) * Dividend Payout Changes Today (BMI, ITW, CBC, FNM, RDN, VRS) * Fannie Mae Reports More Losses and a Big Dividend Cut (FNM) * Long Term Investors:Time to Buy These Financials * Double Trouble: Fannie Mae & Freddie Mac (FNM, FRE) News is hitting the wires that Fannie Mae (FNM) and Freddie Mac (FRE) may be headed under federal control. In a plan that is being proposed, the companyâs top brass and their boards would be replaced and shareholders would be virtually wiped out, but that the companies would be able to continue functioning with the government generally standing behind their debt. The Bottom Line It appears that this potential plan will cost taxpayers tens of billions of dollars. The common and preferred shares of Fannie and Freddie would be reduced to little or nothing, and any losses on mortgages they own or guarantee could be paid by taxpayers. We have been warning about bottom-fishing in these particular names. Mondayâs market open does not look good for either stock. Fannie Mae (FNM) is not a recommended dividend stock at this time, holding a Dividend.com rating of 1.9 out of 5 stars. Freddie Mac (FRE) is not a recommended dividend stock at this time, holding a Dividend.com rating of 1.9 out of 5 stars.