There are many bad things that can go wrong at public companies.  Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) have both seen their share of EVERYTHING go wrong. 

And the good news for the bad news bears is that there is always more bad news. 

Fannie Mae (NYSE: FNM) has been notified by the New York Stock Exchangethat it has failed to satisfy the standards since its stocktraded under $1.00 for 30 consecutive trading days ending November 12.  We have pondered a possible de-listing and move to "OTC"before.

As a result, the company’s common stock and each of its listed seriesof preferred stock are subject to suspension and de-listing unless thecompany notifies the NYSE by November 26 of its intent to curethis deficiency.

If the company provides this notice, it will have six months fromNovember 12 to bring its common stock share price and averageshare price for 30 consecutive trading days above $1.00. Fannie Mae said that it is currently working with its conservator, theFederal Housing Finance Agency, to explore options relating to thisdeficiency. 

Freddie Mac (NYSE: FRE) has not yet received such a notice.  Its stocktraded under $1.00 back in October for 6 consecutive days beforerallying back to above $1.00.  But now after five days above $1.00 it has slid under the mark for 10 consecutive days.  Its almost 17%rally today only took it to $0.62, so it has a ways to go beforegetting above the $1.00 mark again.

Whether either keep their listings is still an unfinishedchapter in the business history books and the stock trader’s almanac. 

Dare we say or ask, "Fannie, may you…."

Jon C. Ogg
November 18, 2008

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