NYSE to delist mortgage finance giants
The mortgage finance giants Freddie Mac and Fannie Mae were ordered to delist from York Stock Exchange by the federal agency that oversees the two companies.world Updated: Jun 16, 2010 23:57 IST
The mortgage finance giants Freddie Mac and Fannie Mae were ordered to delist from York Stock Exchange by the federal agency that oversees the two companies.
The regulator for the companies, the Federal Housing Finance Agency, said the decision to delist from the stock exchange was no reflection on their performance.
In a statement, the Federal Housing Finance Agency said its decision was based on Fannie Mae’s share price falling below the Big Board’s required minimum of $1 a share.
The share price sank in September 2008, and since then has hovered around $1. Tuesday’s close was 92.4 cents a share.
Once the delisting is completed, the regulator said, each company’s shares will be quoted on the Over-the-Counter Bulletin Board.
“F.H.F.A.’s determination to direct each company to delist does not constitute any reflection on either enterprise’s current performance or future direction, nor does delisting imply any other findings or determination on the part of F.H.F.A. as regulator or conservator,” the agency’s acting director, Edward J. DeMarco, said.
“A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets,” DeMarco said.