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Fannie Mae, Freddie Mac, ordered to delist

  |   June 16, 2010 at 3:13 PM
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WASHINGTON, June 16 (UPI) -- The Federal National Mortgage Association Wednesday notified New York and Chicago stock exchanges of its intention to delist its stock due to low prices.

Fannie Mae said it had filed notification with the Securities and Exchange Commission of its intention to delist common and preferred stock, a move prompted by the New York Stock Exchange, which informed Fannie Mae on June 15 that it no longer met minimum standards on prices to maintain a presence on the exchange.

The Federal Home Loan Mortgage Corp., Freddie Mac, was also ordered off of stock listings, CNNMoney.com reported.

Shares of both mortgage giants fell with the news. Fannie Mae was listed at 56 cents per share in midday trading, down 0.37 percent from the opening price of 91 cents at the opening bell. Freddie Mac shares fell 40 percent to 72 cents.

Both companies were put into government conservatorship in September 2008 after massive losses due to the subprime mortgage meltdown.

The Treasury Department has kept Fannie Mae afloat with $83.6 billion in bailout funds, while Freddie Mac has received $61.3 billion.

In its most recent estimate, the Congressional Budget Office said $400 billion will be needed to keep the companies going.

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