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Fannie Mae, Freddie Mac To Leave NYSE

From an unfazed Associated Press:

Fannie Mae, Freddie Mac to delist shares from NYSE

By J.W. ELPHINSTONE (AP)

June 16, 2010

NEW YORK — Government-sponsored mortgage purchasers Fannie Mae and Freddie Mac plan to delist their shares from the New York Stock Exchange. Both stocks tumbled in morning trading.

Fannie Mae shares dropped 42 cents, or 46 percent to 50 cents, while Freddie Mac slid 55 cents, or 45 percent, to 67 cents.

The companies’ regulator, the Federal Housing Finance Agency, said Wednesday that it expects Fannie Mae and Freddie Mac shares to trade on the Over-the-Counter Bulletin Board, an electronic quotation service.

"It’s logical," said Keefe, Bruyette & Woods Inc. analyst Bose George. "The pretense that they were public companies didn’t make sense. They were kept around so the government could pursue its housing goals."

The government took over the pair in September 2008 after they suffered heavy loan losses following the housing crash. So far, it’s cost $145 billion so far and is likely to be the most expensive of all the financial bailouts

"This is long overdue. The NYSE has been exceptionally kind to Fannie and Freddie to allow their stock to continue trading for as long as it has," said banking analyst Bert Ely.

In 2007, shares of both companies traded above $60. As the housing crisis deepened the stocks lost almost all of their value, plummeting below $1 by September 2008. Since then the shares have bounced above and below the $1 mark as traders speculated that government may one day be able to sell its stakes in the companies…

We are not quite sure exactly what to make of this.

But it isn’t any too reassuring.

This article was posted by Steve on Wednesday, June 16th, 2010. Comments are currently closed.

12 Responses to “Fannie Mae, Freddie Mac To Leave NYSE”

  1. GetBackJack says:

    Hiding the paper trail

  2. proreason says:

    “We are not quite sure exactly what to make of this. ”

    They are now trading as penney stocks along with the documented ponzi schemes, fly-by-night scams, vanity “businesses”, shyster shell games, and other entities that dice games for suckers rather than real businesses.

    It’s like moving down from sleeping in Red Lions to sleeping in skid row flop-houses. Another step in the degredation of a great country……..as ejaculated by the Liar in Chief.

    Hope, change, redistribution, social justice…..the other side of the tracks has moved into your neighborhood.

  3. P. Aaron says:

    Barney Frank was unavailable for comment.

  4. Papa Louie says:

    Does anyone remember Sarah Palin’s “first gaffe”? She said Fannie Mae and Freddie Mac had “gotten too big and too expensive to the taxpayers.”

    The Huffington Post did a long article ridiculing Palin for that statement. They wrote that the companies “aren’t taxpayer funded but operate as private companies.” Andrew Jakabovics at the Center for American Progress said “…The ‘too expensive to tax payers,’ I don’t know where that comes from.”

    Now, $145 billion later, Fannie and Freddie are “likely to be the most expensive of all the financial bailouts.” Over time Palin is being vindicated and her critics have proven themselves to be the idiots.

    • Mithrandir says:

      How can her comments NOT make sense? The government (mostly Bill Clinton and Democrats) pressured them to lend to minorities and other low income people, they couldn’t pay, the taxpayers bailed them out.

      It’s the liberals’ quick draw reaction to anything Fannie and Freddie, pull your gun out first (if you can) and start firing so that no one can hear the criticism of their favorite socialist company. They don’t want any discussion about it, because all the facts point to DEMOCRATS to blame for the financial meltdown.

      Once voters figure that it wasn’t “Wall Street Fat-Cats” or “Rich Unregulated Bankers” or “George Bush’s Fault” they will smite the Democrats out of office.

      Let’s hope so!

    • confucius says:

      I am a minority. (The U.S. Census Bureau insists on telling me this.) But I’m not low income. (The IRS insists on this too.)

      I currently own two houses–one I bought for my familiy and the other for my parents. Both are paid-in-full without help from anyone. (I insist on this.)

  5. confucius says:

    The NYSE (and Nasdaq) can de-list a company if its shares trade for less than $1.00 for 30 consecutive days. Fannie Mae has been doing this since the middle of last month. Freddie Mac has been hovering around $1.20.

    Fannie and Freddie could have rectified the problem with a reverse-split. Curiously, they chose not to.

  6. platypus says:

    Doesn’t seem to mysterious to me. We don’t know the terms of the bailout, which is where the control is vested. I suspect it has more to do with driving the share price even lower, allowing favored Dem fatcats to load up on cheap shares while staying way below cash totals. After all, who would get riled up about somebody spending 10,000 to buy stock, unless the share price was five cents and then it might be obvious that someone was buying 200,000 shares.

    What would those shares be worth once Fannie and Freddie were fully capitalized with taxpayer funds. I’m guessing at least as much as before.

  7. Chuckk says:

    I say it would be wise to buy Fannie and Freddie stock. They are at their lows and it is clear the government will not let them fail. They will be back on their game in no time, thanks to the government and our taxes.

  8. BigOil says:

    Two companies backed by the full faith and credit of the US treasury are penney stocks. How ironic.


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