At the direction of their regulator, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. will delist their shares from the world’s biggest stock exchange.
The Federal Housing Finance Agency made the disclosure in a statement today.
According to the regulator, Fannie Mae and Freddie Mac have been directed to delist their common and preferred stock from the New York Stock Exchange and any other securities exchange.
FHFA explained that the NYSE requires a minimum closing price of $1 per share — and Fannie’s shares recently fell below a dollar. Freddie’s shares are hovering near the $1 mark.
Given that both companies are operating in conservatorship with capital support from the U.S. Department of the Treasury and need to conserve assets, FHFA decided for the delistings.
FHFA Acting Director Edward J. DeMarco attempted to keep anxieties low about the two important components of the U.S. housing system.
“FHFA’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 FHFA as regulator or conservator,” DeMarco said in today’s statement.
After the delisting, shares of the two government-controlled enterprises will trade on the Over-the-Counter Bulletin Board.
