WALL STREET-The stock prices of mortgage giants Fannie Mae and Freddie Mac plummeted last week after announcing they had been ordered to delist from the New York Stock Exchange.
Fannie Mae's stock was down 45% Wednesday morning and Freddie Mac's stock was down 47%. The Federal Housing Finance Agency said the delisting was not due to the companies' performance.
The two companies have been hemorrhaging red ink and have tapped more than $145 billion combined in federal aid. They have an open credit line with the Treasury Department through 2012. OTC trading of shares of the two companies is expected to start July 8.
Fannie Mae said the switch should not affect its ability to provide stability to the mortgage market, while Freddie said it expects its shares will be quoted on the OTC Bulletin Board "so long as market makers demonstrate an interest" in them.
