Bhairee, as per Poole today, if conventional accounting held (instead of all the bogus we're being fed by analysts), Freddie and Fannie Mac would be deemed insolvent already.  While the WSJ reports the Fed is still mulling over what to do if they falter (an euphemism for fail). 

My take: Stay away from those stocks for now however cheap they may look.  Take your money and run outta those!!