Fannie Mae and Freddie Mac Stocks Drop After Being Ordered to Delist From NYSE
Fannie Mae and Freddie Mac have been dealt a whopping blow as a result of being delisted from the New York Stock Exchange, with steep drops in their respective stock prices. Fannie Mae was down 45% on Wednesday, while Freddie Mac was down 47% on the same day, closing out at 38% and 39% respectively. With the stock prices of both companies falling well below the New York Stock Exchange’s one-dollar requirement for more than thirty days, the delisting announcement became official.
The delistings have been effective as of July 8th, leaving yet another nasty mark on Fannie and Freddie, with both mortgage superpowers being under public scrutiny over the past couple of years. The order to delist was made by the Federal Finance Housing Authority, regulator of both companies. Despite the delisting, they still have ability to post filing with the SEC and resume trading practices on of Over-the-Counter Bulletin board. What exactly does this all mean, and what does it say for the future of the companies?
It’s certainly not good news for them. Trading outside of the NYSE essentially guarantees to hurt their stocks even more, losing liquidity in the process. At this point, one questions whether or not it’s possible for Fannie or Freddie to rise to prominence ever again. With their current state of affairs, it’s looking bleak. Douglas Duvall, spokesperson for Freddie Mac, declined to comment on the situation and what the future held for the company. Meanwhile, Fannie Mae claims to remain confident in the face of the delisting, hoping that Fannie will remain relevant in the home loan mortgage marketplace. Only time will tell as to whether or not such optimism holds any water.
Fannie Mae is based out of Fairfax County, Virginia, while Freddie Mac is based out of Washington D.C. Both companies have received a total of over 7 billion from the Treasury Department. Fannie Mae home loan mortgage and Freddie Mac home loan mortgage practices have been under fire in recent years.
As everyone knows, Fanny Brice was the character Barbra Streisand played in ‘Funny Girl’. I always been interested in seeing the original – here Fanny gives a shatteringly powerful performance of ‘My Man’. It was recorded in 1921. I’ve added some images of Fanny Brice to give a sense of her throughout her career and in different guises.
Video Rating: 4 / 5