How can the government force this takeover? Being FNM and FRE are publically traded, it should follow suit of a traditional hostil takeover/tender offer. Those who are shareholders should all feel like kicking the door in of that meeting demanding a say (Imagine Gekko as OJ). Whats next? Microsoft being aquired by the government when it has a few lousy quarters?

FRE/FNM are chartered by the government. And their bonds enjoyed a higher price because the implicit loan guarantee from the government.

Have you seen the news. Apparently Paulson is authorizing the treasury to aquire the companies.