The failboat is forced to make room for two more, as $FNM and $FRE both are summarily delisted from the New York Stock Exchange for the failure to keep their stock above the loller-dollar level:
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.
The move to delist the shares isn’t a surprise. The crash in the housing market has pounded Fannie Mae and Freddie Mac with heavy loan losses since 2007. Fannie shares have been below the $1 average price level for 30 trading days. NYSE rules require a company to take action to boost its shares or delist.
The government took over the pair in September 2008 under the authority of a law passed by Congress. So far, taxpayers have poured $145 billion into Fannie and Freddie to keep them afloat and to buoy the overall housing market.
If I had to say something nice, it’d be that I’m glad at least that the feds didn’t pour more government money in there specifically to keep the share price afloat. At least now that it’s delisted (pink sheet trading aside) that’s one step closer to admitting it’s fully become a government extension operating to prop up the housing market, and not a private entity. Of course, it’s not like our long national nightmare is over, or anything. They’ve got an unlimited line of bailout credit, and Bloomberg reported a possible cost of a trillion dollars in a worst-case scenario by the time all is said and done. Considering they or the VA guaranteed 97% of residential real estate loans last quarter, the only alternative is not having a mortgage market at all, and honestly that sounds appealing in some respects, when you consider the mess that mortgages are in, but totally crappy as far as practicality goes.