The federal government has a moral obligation to Fannie Mae and Freddie Mac shareholders and needs to end the current state of limbo, activist and consumer advocate Ralph Nader tells MarketWatch in an interview. "They should put out a statement saying that whatever organization or reorganization there is of Fannie and Freddie, they will respect the shareholders' equity and not vanquish it," Nader said. "The U.S. government has got to treat Fannie and Freddie common shareholders the way they treated Citigroup and AIG. They bailed them out and gave them a chance to recover." Nader: They believe that equity will prevail in any reorganization. These are enormously wealthy companies in terms of assets and profits. The more [investors] believe, the more they become lobbyists for it. They are getting themselves into a self-fulfilling prophecy. Nader: The problem with any attempt to change the status quo is that from a financial viewpoint, Fannie and Freddie are working very well today. The housing market is recovering and the last thing that the housing and financial and real estate community wants is uncertainty and instability regarding Fannie and Freddie. In the meantime, they are reporting huge profits and by the end of next year they will have repaid the government.