The New York Stock Exchange notified Freddie Mac that its shares may be delisted if it cannot raise its share price above $1 within 30 days.
NYSE gave Freddie Mac until Dec. 2 to offer a plan to raise the share price above $1 and the price has to stay at that level for 30 days. NYSE is giving Freddie Mac six months from this past Monday (Nov. 17) to be in compliance, if the company submits a plan.
Freddie Mac announced that it’s working with its conservator, the Federal Housing Finance Agency to figure out a solution.
Freddie Mac’s stock symbol is FRE and it will soon be FREBC to designate that the stock is in danger of being delisted and out of compliance with NYSE listing standards.
As of this morning shares were 48 cents a share. That’s a long way down from its 52-week high of $37.18 a share.
Freddie Mac helps fund home purchases by buying mortgages from banks. The banks use that money to issue new mortgage loans to additional home buyers.
November 21, 2008