{"id":616,"date":"2010-06-17T14:54:18","date_gmt":"2010-06-17T14:54:18","guid":{"rendered":"http:\/\/www.nyonlinerealty.com\/blog\/?p=616"},"modified":"2010-06-17T16:12:41","modified_gmt":"2010-06-17T16:12:41","slug":"fhfa-orders-fannie-freddie-to-delist-stock-from-nyse","status":"publish","type":"post","link":"https:\/\/blog.nyonlinerealty.com\/?p=616","title":{"rendered":"FHFA Orders Fannie, Freddie to Delist Stock from NYSE"},"content":{"rendered":"
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By: Carrie Bay<\/p>\n

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae<\/a> and Freddie Mac<\/a> to delist their common and preferred stock from the New York Stock Exchange (NYSE) and any other national securities exchange.<\/p>\n

\u201cA voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets,\u201d said FHFA Acting Director Edward J. DeMarco.<\/p>\n

Both companies\u2019 common stock price has hovered near the NYSE minimum average closing price requirement of $1 for more than 30 trading days for most months since Fannie and Freddie were placed into conservatorships in September 2008.<\/p>\n<\/div>\n

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For the past 30 trading days, Fannie Mae\u2019s closing stock price has dropped below the required $1 average price. Per NYSE rules, a company in that condition must either drop from the exchange or undertake a \u2018cure\u2019 to restore the stock price above the $1 mark. But FHFA says the alternatives for such a cure do not assure that the minimum price level will be maintained or shareholder value will not be lost.<\/p>\n

Freddie Mac\u2019s share price has been treading very close to the $1 mark, and FHFA says because both GSEs are operating under its conservatorship and relying on taxpayer support, the agency decided that Freddie Mac should also initiate delisting procedures.<\/p>\n

\u201cFHFA\u2019s determination to direct each company to delist does not constitute any reflection on either enterprise\u2019s current performance or future direction, nor does delisting imply any other findings or determination on the part of FHFA as regulator or conservator,\u201d DeMarco said. \u201cThe determination to direct delisting is related to stock exchange requirements for maintaining price levels and curing deficiencies.\u201d<\/p>\n

The GSEs\u2019 stock will continue to trade, but through a different trading mechanism, FHFA said. Once the delisting is completed \u2013 which should be by early July \u2013 each company\u2019s common and preferred stock will be quoted on the Over\u2013the-Counter Bulletin Board (OTCBB).<\/p>\n

Both GSEs\u2019 stock prices dropped nearly 40 percent on Wednesday.<\/p>\n

http:\/\/www.dsnews.com\/articles\/fhfa-orders-fannie-freddie-to-delist-stock-from-nyse-2010-06-16<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By: Carrie Bay The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to delist their common and preferred stock from the New York Stock Exchange (NYSE) and any other national securities exchange. \u201cA voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[79],"tags":[176,174,175],"class_list":["post-616","post","type-post","status-publish","format-standard","hentry","category-articles","tag-fannie","tag-fhfa","tag-freddie"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=\/wp\/v2\/posts\/616"}],"collection":[{"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=616"}],"version-history":[{"count":5,"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=\/wp\/v2\/posts\/616\/revisions"}],"predecessor-version":[{"id":619,"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=\/wp\/v2\/posts\/616\/revisions\/619"}],"wp:attachment":[{"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.nyonlinerealty.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}