The Takeover

Looks like the government is taking Fannie and Freddie into receivorship: “The executives were told that, under the plan, they and their boards would be replaced, shareholders would be virtually wiped out, but the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.”

Not sure I understand the logical behind “virtually” wiping out the shareholders as opposed to totally wiping them out. As per this Economist article the sensible thing seems to me to be to nationalize the GSEs entirely and then eventually have them broken up into bits that are subsequently privatized.