Fannie Mae Threatened With Delisting from NYSE

NEW YORK – the New York Stock Exchange issued a delisting notice to Fannie Mae on Monday because of the ongoing failure of the secondary mortgage market giant to file its financial statements, amidst the massive restatements for the past three years. In its delisting notice the NYSE cited Fannie’s failure to file its annual report for 2005. The company said it has agreed to file its financials for 2005 by the end of 2007 to forestall formal delisiting proceedings. Until all of its quarterly and annual financial statements for the past three years are filed with the SEC, the NYSE will continue to identify Fannie Mae as a scofflaw on its consolidated tape, the electronic ticker. Separately, Fannie said yesterday it filed suit against its former auditors, KPMG, claiming negligence in audits the firm conducted the company that required a restatement of $6.3 billion in earnings. The accounting giant applied more than 30 flawed principles and cost the company more than $2 billion in damages, Fannie stated in its complaint.