Fanniemae/freddimac delisted from the nyse

Discussion in 'Financial Cents' started by Tango3, Jun 16, 2010.

  1. Tango3

    Tango3 Aimless wanderer

    When a companies share value falls below a certain limit they are removed from the Newe York stock exchange. These are companies backed by the U.S gubbermint.
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    <!-- end .related-media --> <abbr title="2010-06-16T06:25:29-0700" class="timedate">Wed Jun 16, 9:25 am ET</abbr>
    <!-- end .byline --> NEW YORK – Government-sponsored mortgage purchasers [COLOR=#366388 ! important][COLOR=#366388 ! important]Fannie[/COLOR][/COLOR] Mae and Freddie Mac plan to delist their shares from the New York Stock Exchange.
    The companies' regulator, the Federal [COLOR=#366388 ! important][COLOR=#366388 ! important]Housing [COLOR=#366388 ! important]Finance [/COLOR][COLOR=#366388 ! important]Agency[/COLOR][/COLOR][/COLOR], said Wednesday that it expects Fannie Mae and Freddie Mac shares to trade on the Over-the-Counter Bulletin Board, an electronic quotation service.
    The move to delist the shares isn't a surprise. The crash in the housing market has pounded Fannie Mae and Freddie Mac with heavy loan losses since 2007. Fannie shares have been below the $1 average price level for 30 trading days. NYSE rules require a company to take action to boost its shares or delist.
    The government took over the pair in September 2008 under the authority of a law passed by Congress. So far, taxpayers have poured $145 billion into Fannie and Freddie to keep them afloat and to buoy the overall housing market.
    Fannie Mae, Freddie Mac, the FHA and the Veterans Administration backed nearly 97 percent of [COLOR=#366388 ! important][COLOR=#366388 ! important]home [COLOR=#366388 ! important]mortgages[/COLOR][/COLOR][/COLOR] in the first quarter of this year, according to trade publication Inside Mortgage Finance.
    Fannie and Freddie were created by Congress to buy mortgages from lenders and package them into bonds that are resold to investors. Together they own or guarantee almost 31 million [COLOR=#366388 ! important][COLOR=#366388 ! important]home [COLOR=#366388 ! important]loans[/COLOR][/COLOR][/COLOR] worth about $5.5 trillion. That's about half of all mortgages.

    Fannie Mae, Freddie Mac to delist shares from NYSE - Yahoo! News

    latoc board financial wizards are fairly concerned over this news.
    "me ? "I want a cracker"; Rawwwk...
  2. SLugomist

    SLugomist Monkey++

    Doesn't mean much. It will just be listed on the OTC exchanges, I think Boston and Chicago have them and they have stocks from 0.1/share to $50/share. A lot of people panicked and sold today, it'll probably be back over a $1/share in a few weeks.

    I bought a few shares (~11) FNM about 5-6 years ago at freakin ~$60-70/ share through a drip/dspp program. So I'll sell when I need a capital loss for taxes.
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