| Freddie faces NYSE delisting warning |
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| Written by Becky | |
| Wednesday, 03 December 2008 | |
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Freddie Mac recently received a notice from the New York Stock Exchange, advising them that they may lose their listing in NYSE, as they do not meet the requirements needed. To meet NYSE requirements, a stock´s average closing price needs to be above $1 per share for more then a 30-day time frame, which Freddie Mac has not been meeting. Freddie Mac has said that they will be working with the FHFA to try and raise their stock price. However, if necessary, Freddie has announced that if they are not able to raise it, they could do a reserve stock split in order to maintain their listing status on the NYSE. If they are still enable to meet the given requirements, the NYSE will begin Freddie´s suspension and start dislisting procedures. Both Freddie Mac and like company Fannie Mae have had their stock prices well below $1 since they were taken over by federal regulators in September. Freddie has had an almost 97% decrease since the beginning of the year, after having reached a 52 week high in January, of $34.63. On Tuesday, their stock fell 14 cents, leaving their stock price at 77 cents. Freddie and Fannie are own/guarantee almost half of the over $11.5 trillion home debt loans in the U.S. They are also part of a conservatorship, which allows the government to input up to $100 billion in each of the companies, in return for 80% stake ownership.
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