This announcement comes shortly after the Federal Housing Finance Agency directed the companies to voluntarily delist their common and preferred stock from the New York Stock Exchange (NYSE) and any other national securities exchange.
As DSNews.com previously reported, Fannie Mae and Freddie Mac were ordered to delist because their common stock price had hovered near the NYSE minimum average closing price requirement of $1 for more than 30 trading days for most months since the two government-sponsored enterprises (GSEs) were placed into conservatorships in September 2008.
Fannie Mae said its common stock, which previously traded under the symbol “FNM,” will commence trading on the OTC Bulletin Board under the symbol “FNMA.” And shares of Freddie Mac’s common stock, which traded on the NYSE under the symbol “FRE,” will now trade under the symbol “FMCC.”
Shares of each of the GSEs’ preferred stocks will also take on new trading symbols on the OTC market.
In a statement, Freddie Mac noted that the transition to the OTC market will not affect the company’s obligation to file periodic and certain other reports with the Securities and Exchange Commission under applicable federal securities laws.