Freddie Mac and Fannie Mae delisting from NYSE
- June 17, 2010
McLean-based mortgage giant Freddie Mac and Fannie Mae were ordered to delist from the New York Stock Exchange by their federal regulator.
The companies have been in conservatorship since September 2008, when the government became concerned about the companies’ survival. The government-sponsored enterprises own or guarantee about half of U.S. mortgages. The government has given Fannie and Freddie more than $145 billion to stay afloat.
The Federal Housing Finance Agency directed the companies to delist as their stock price has hovered near the required $1 trading value on the New York Stock Exchange. In the last 30 days, Fannie Mae’s has been below the $1 average for the past 30 days.
The agency said the companies should delist, rather than take measures necessary to raise their stock price.
“A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets,” FHFA Acting Director Edward J. DeMarco said in a statement.
After the delisting, the companies’ common and preferred stock will be traded on the Over-the-Counter Bulletin Board.