It was a colossal downfall for two firms, which for decades symbolized the thriving U.S. realty industry.
But last week, at the indication of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac were removed from the New York Stock Exchange list, becoming the newest mementos of the nation’s recent mortgage slump.
Fannie and Freddie were formed by the U.S. Government to make real estate more reasonable for landowners and together assured about $12 trillion in U.S. mortgage debt.
In the middle of the year 2007, Fannie Mae’s shares still traded for $68. But the mortgage crisis corroded the corporation’s monetary position and by October 2008, the firm’s stock was below $1 per share.
Freddie Mac’s shares have been lower than $1 since the starting of 2008.
The federal agency did not give much importance to the implication of the delistings.
Edward J. DeMarco, Acting Director at FHFA, in a recent statement said, “A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets”.
Delisting usually arrives on the scene, when the stock price dips below a least average of $1 over a 30-day time phase, a hint of a monetarily stressed association.