[cowtowney]

The Treasury may not let them fail, but in doing so I hope the equity is wiped out or minimized to $1.00.

[JasonC]

Paulson made it quite clear the opposite is intended, because what you suggest would end in re-nationalizing the agencies. There wouldn't be any private shareholders any more. Paulson said, in their present form as private companies, and explicitly sought authority to buy their stock, not just lend to them. You don't buy something you are intentionally driving to zero.

[Petronski]

I’m pretty confident that common equity will be zeroed out in the rescue.