Shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) will be delisted from the New York Stock Exchange for failure to meet minimum exchange requirements. Shares of both government controlled companies tumbled more than 40 percent on the news.
The Federal Housing Authority, which is in charge of regulating Fannie Mae and Freddie Mac, told the companies they need to delist since Fannie Mae fell below the NYSE’s $1 trading requirement for more than 30 days, receiving a delisting notice from the exchange.
Despite the delisting, both firms will continue to report their financial results to the Securities and Exchange Commission, while shares will trade on the Over-the-Counter- Bulletin Board, an exchange generally filled with penny stocks.
According to reports, shares are set to be delisted sometime around July 8.
