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NYSE should delist Fannie Mae

Perspective: SEC action sends wrong message to shareholders

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Thanks to a recent decision by the U.S. Securities and Exchange Commission, shares of mortgage giant Fannie Mae are still traded on the New York Stock Exchange, even though the corporation has failed to comply with SEC financial reporting requirements. That's a travesty. Fannie Mae first disclosed problems in its accounting practices and financial statements more than two years ago and at that time assured investors that accurate financial statements would be prepared and filed with the SEC. Since then, more errors have been discovered, the anticipated earnings restatement has been pegged at around $11 billion, and financial statements for 2004 and 2005 have yet to be filed. Federal regulators, Congress and the U.S. Department of Justice have opened investigations into the scandal. Yet the NYSE has deemed Fannie Mae to be too important to be removed from the big board due to the nature of company's business and its $55 billion market capitalization. This special privilege came about b...