Small Banks Hobbled by Fannie, Freddie.

The article discusses the impact on small banks in the U.S. of financial turmoil at Fannie Mae and Freddie Mac. Many invested in preferred shares of Fannie and Freddie, which have plummeted in value. State of Franklin Bancshares Inc. of Johnson CIty, Tennessee was forced to sell itself to another institution in the aftermath of losses on its Fannie and Freddie holdings.