My Canadian Business

> My Portfolio
> Gainers > Losers > Actives
> Mutual Fund Lookup

Mortgage finance company Freddie Mac receives delisting notice from New York Stock Exchange

November 21, 2008 - 09:52 a.m.

WASHINGTON (AP) - Mortgage finance company Freddie Mac said Friday it received a noticed that it may lose its listing on the New York Stock Exchange because its share price has been under $1 for more than 30 days.

Freddie Mac, in a Securities and Exchange Commission filing, said it received the notice on Monday.

The NYSE requires that the average closing price of a stock remain above $1 per share.

Freddie Mac said it has not yet determined its response or any specific action it will take as a result of the notice.

If the company decides to rectify the deficiency, it would have six months from Nov. 17 to bring its common stock and average share price for 30 consecutive trading days above $1.

Shares of Freddie Mac and sibling company Fannie Mae have traded below the $1 mark for much of the time since they were seized by federal regulators in September. Fannie Mae stock, which a year ago was trading as high as $40.45, closed at 47 cents Tuesday.

Fannie Mae and Freddie Mac, which own or guarantee around half of the $11.5 trillion in U.S. outstanding home loan debt, operate in a conservatorship that enables the government to inject up to $100 billion in each company in exchange for ownership stakes of almost 80 percent.

Freddie Mac has asked for an initial injection of $13.8 billion in government aid, while Fannie Mae has not yet tapped the government lifeline.

Shares of Freddie Mac added 1 cent to 50 cents in morning trading. The stock — which hit a 12-month high of $37.18 last December, slid to a low of 25 cents in September, and is off nearly 99 percent since January.

Rate this article

Discuss

To comment, please sign in or register.

Report As (required):

Comments (optional):

-

Editors' Picks

Most Popular Stories

  • Most Read
  • Most Commented
  • Market News

    Jobs Search


    Getting Sick Can Be Costly
    Did you know? Your provincial health plan doesn't cover all the costs that your family could incur.
    Find out more

    Ads from Yahoo!