Industry NewsMortgage

Fannie, Freddie’s fate still up in the air

Feds: Order to delist shares has no bearing on final decision
Published on Jun 16, 2010

The government is ordering Fannie Mae and Freddie Mac to delist their stock from the New York Stock Exchange, but the move is motivated by the fact that both companies' share prices often trade below the minimum $1 average closing price -- not because any decision has been made about their future.Although many analysts believe shares in Fannie and Freddie are worthless, they will continue to trade in the over-the-counter market, and both companies will continue to file reports on their financial results to the Securities and Exchange Commission.The Federal Housing Finance Agency's order to delist their shares "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," regulators said in announcing the move.Fannie and Freddie were placed in government conservatorship in September 2008. The Obama administration has said the gove...

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