More bad news for Fannie Mae and Freddie Mac. On Wednesday, June 16, Fannie Mae was ordered to notify the New York Stock Exchange (NYSE) and the Chicago Stock Exchange (CSE) of its intent to delist its common and preferred stock. Freddie Mac was ordered to notify the NYSE of its intent to do the same. The move was made by the acting director of the Federal Housing Finance Agency (FHFA), which is the conservator for the government-sponsored entities.
The order came in response to the notification a day earlier by the NYSE that the companies no longer met NYSE continued listing standards relating to the minimum price of their common stock.
In accordance with SEC rules and regulations, Fannie Mae and Freddie Mac said they intend to file a Form 25 (Notification of Removal from Listing under Section 12(b) of the Securities Exchange Act of 1934) on or about June 28, 2010. The GSEs anticipate the delisting of its common and preferred stock from the NYSE and CSE will be effective 10 days after they file the Form 25 with the SEC.
After the delisting of its stock, Fannie and Freddie said they expect their common stock and all series of preferred stock that were previously listed on the NYSE and the CSE will be traded in the over-the-counter market and quoted on the OTC Bulletin Board (OTCBB), a centralized electronic quotation service for over-the-counter securities, under a ticker symbol that has yet to be assigned.
The GSEs said they expect that their common stock and preferred stock will continue to trade on the OTCBB so long as market makers demonstrate an interest in trading in the common and preferred stock.