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WASHINGTON, Aug 20 (Reuters) - Officials from the U.S. Treasury and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) met on Wednesday to reach a decision on the government plan outlined in mid-July. The U.S. Treasury and Freddie Mac has reached the decision to recapitalize the current equity by funding the preferred shares with approximately 15.4 Billion.

The Treasury will effectively purchase 7.6 Billion worth of preferred shares on Sept 1st, 2008. The remaining shares will be purchased on October 1st, 2008.

The transaction will render common shares worthless.