Business

Fannie Mae and Freddie Mac delisted from stock exchange

Freddie Mac sign
Image caption Freddie Mac and its sister company Fannie Mae have continued to rack up losses

US home loan giants Fannie Mae and Freddie Mac are to cease trading on the New York Stock Exchange (NYSE).

The state-sponsored lenders were ordered to leave the exchange by the Federal Housing Finance Agency (FHFA).

They have both continued to suffer heavy losses in the aftermath of the financial crisis.

Their share prices have slumped to the NYSE's minimum level of $1 a share - requiring them to try to boost their stock, or delist.

The FHFA said the decision to exit the exchange did not "constitute any reflection on [Fannie Mae and Freddie Mac's] current performance or future direction".

FHFA's acting director Edward DeMarco added that delisting the shares "makes sense and fits with the goal... to preserve and conserve assets".

The two lenders, which provide mortgage finance to other lenders, were placed under government control in September 2008 after being severely hurt by the collapse in the mortgage market.

Both have continued to make heavy losses, however, so far costing US taxpayers $145bn in bail-out costs.

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