July 7 (Bloomberg) -- Fannie Mae and Freddie Mac, the mortgage companies 80 percent owned by U.S. taxpayers, will begin trading under new ticker symbols tomorrow as they complete their delisting from major U.S. exchanges.
Fannie Mae’s common and preferred stock will trade on the OTC Bulletin Board under FNMA, the Washington-based company said today in a news release. In a separate statement, McLean, Virginia-based Freddie Mac said it will trade as FMCC on the bulletin board and the Pink Sheet Electronic Quotation Service. Fannie Mae formerly traded as FNM, Freddie Mac as FRE.
The Federal Housing Finance Agency, the regulator that has overseen the companies since 2008, ordered them to delist last month after the New York Stock Exchange told Fannie Mae that its shares no longer met listing standards. The NYSE and the Chicago Stock Exchange will suspend trading of their shares before markets open tomorrow.
The government-sponsored firms, which own or guarantee more than half of the $11 trillion U.S. mortgage market, had been at risk of delisting since September 2008, when their share prices collapsed and they were placed under federal conservatorship.
Companies are subject to delisting by the NYSE when their share prices fall below $1 for 30 consecutive trading days.
To contact the reporter on this story: Lorraine Woellert in Washington at firstname.lastname@example.org.
To contact the editor responsible for this story: Lawrence Roberts at email@example.com.