Fannie and Freddie "Quietly" Slip off the Exchange
pic credit: Coyote Howls Campground, Why, AZ (seriously)
The mortgage financing giants Fannie Mae and Freddie Mac are at last slipping into a form of obscurity. The companies will delist from the New York Stock Exchange under order of their federal watchdog. When they start trading in the penny stock market, investor attitudes may change — but the government fiction that the two are private companies almost certainly won’t.
The ostensible rationale for the Federal Housing Finance Agency’s directive to move them off the big markets is that Fannie’s stock lately has averaged less than the $1 minimum price required by the N.Y.S.E., while Freddie’s has fallen close to that level. With no obvious argument to reset their share prices, a delisting was inevitable.
I can't believe it took this long.