Fannie Mae and Freddie Mac to Be Delisted

Posted Jun 16th 2010 9:45AM by Mark Fightmaster
Filed under: Before the Bell, Federal Natl Mtge (FNM)

Fannie Mae (FNM) announced Wednesday it told the Securities and Exchange Commission that it will delist its common and preferred stock. On Tuesday, the company was told that it no longer meets NYSE listing standards of minimum price of its common stock. Shares of FNM have traded below a $1 average price for the past 30 days, triggering NYSE rules for the company to either take action to boost its shares or to delist.

But it wasn't just the exchange's rules and regulations. The Federal Housing Finance Agency announced that it is directing both FNM and Freddie Mac (FRE) to delist their shares from the NYSE and any other national exchange.

Fannie Mae expects its common stock and any series of preferred stock will trade over-the-counter under a ticker symbol that will be determined at a later date. Furthermore, the company will continue to file reports with the SEC under federal securities laws.

My reaction to this is basically -- what took them so long? I know that there are rules and regulations for companies to adhere to in order to maintain a spot on the NYSE, but I thought that nearly causing the collapse of the American economy was enough for both of these companies to be delisted.

In addition, I find it interesting that the FHFA decided to shutter both FNM and FRE rather than take any attempts at boosting the shares. The FHFA threw in the towel rather than making any effort to save these firms in the current housing market. Good riddance to bad rubbish.

Tags: delist, delisting, fannie mae, featured, fnm, fre, freddie mac, inthenews, NYSE

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Reader Comments (Page 1 of 1)

6-16-2010 @ 1:03PM

scole said...

Shut this bunch of crooks DOWN NOW once and for all...Take the Government money that they spend on keeping this alive and make honest loans and get out of our lives....They are the cause, not the cure, for this entire problem

6-17-2010 @ 7:18PM

joe said...

I don't have any experience about the stock market. Just want to find my way to understand how the delisting stock work. In this case what happened to the stock owner who own FNM and FRE? Will they lost all their money? Will they lost all their shares? Please help me understand how this things works.