Freddie Mac gets NYSE notice
Washington Business Journal - by Tierney Plumb Staff Reporter
Freddie Mac could lose its listing on the New York Stock Exchange if it doesn’t boost its per-share price above $1.
The McLean-based mortgage giant (NYSE: FNM) said on Friday its stock price has fallen below the exchange’s price requirements for too long, according to a regulatory filing.
The news comes days after fellow government-seized lender D.C.-based Fannie Mae reported it got the same NYSE notice.
The average closing price of Freddie Mac’s stock for 30 consecutive trading days was less than $1 per share.
As a result, the company’s common stock and each of its listed series of preferred stock are subject to suspension and delisting unless the company notifies the NYSE by Dec. 2 of its plans to cure the deficiency.
If it does, it will have six months from Nov. 17 to bring its stock price up to required levels above $1 for 30 consecutive days.
In its first quarterly report since falling under ownership of the federal government, Freddie Mac reported a record third-quarter loss of $25 billion last week. Fannie Mae posted a $29 billion loss.
Freddie Mac said it is working with its conservator, the Federal Housing Finance Authority, to explore options to up its per-share closing price but has not yet determined its response or any specific action that it will take as a result of the exchange’s notice.
Freddie Mac stock closed at 49 cents a share on Thursday — more than $25 less than the price it was trading at a year ago.
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