Fannie, Freddie to Delist From NYSE

[cavegal]

http://online.wsj.com/article/SB10001424052748704198004575310443796994402.html?KEYWORDS=freddie 

The federal regulator of Fannie Mae and Freddie Mac ordered the two mortgage-finance giants to delist their common and preferred stock from the New York Stock Exchange, the latest example of how the mortgage giants are shedding their ties to private ownership.

The move came one day after the NYSE formally notified the government that Fannie Mae no longer met listing standards because its shares had fallen below the $1 share-price threshold maintained by NYSE Euronext. A spokeswoman for the Federal Housing Finance Agency, the companies' regulator, said the notice from the NYSE prompted Wednesday's decision to voluntarily delist.

The FHFA said it chose that route rather than to present a "cure," or plan to bring the companies' shares back above $1, because it couldn't be sure that such a plan would work or that it would be in the interest of the government and shareholders to try to keep prices above the $1 threshold.
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    * Document: FHFA Release

"A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets," said Edward DeMarco, the agency's acting director.

The U.S. government took over the companies through a legal process known as conservatorship in Sept. 2008 as rising mortgage defaults threatened to bu

So this means?

[BohemianMonk]

It means Fannie and Freddie's shares have fallen to the point where they are no long viable for consumers to purchase. Basically in lamens terms the government is going to have to take them over completely. If any private investor tried to purchase Fannie or Freddie stock they would lose money. Also that as of right now there would be no way to assure the stockholder he or she could ever hope to regain there investment. This is the key quote here..." The FHFA said it chose that route rather than to present a "cure," or plan to bring the companies' shares back above $1, because it couldn't be sure that such a plan would work or that it would be in the interest of the government and shareholders to try to keep prices above the $1 threshold." That quote right there tells you they are sinking fast, and they cannot come up with any plan to save them apart from Government takeover.