Fannie Mae and Freddie Mac avoided being delisted by the New York Stock Exchange after their shares more than tripled last month.

Freddie said it was notified last week by the exchange that a review as of Aug. 31 showed its average share price for the preceding 30 trading days was above $1, meeting minimum listing requirements.

Fannie said separately that it had also been notified that it had regained compliance.

Fannie and Freddie shares rose above $2 late last month, to their highest levels since the government forced the companies into conservatorship in September 2008. Fannie was up 232% in August, while Freddie surged 269% for the month.

Paul Miller, an FBR Capital Markets analyst, said the rally was unjustified, and attributed the jump to short sellers and investor speculation about reverse stock splits.

"There is no fundamental value remaining in Fannie and Freddie, particularly since the government owns 80% of each company," he said in a research note last week.

If a stock's 30-day average price falls below $1, the exchange sends a formal warning and gives the company six months to correct the deficiency.

Freddie, which peaked at $73.70 in December 2004, had closed at less than $1 on all but one day from Dec. 1, 2008, through Aug. 7. Fannie closed below $1 through the same period. The stock peaked at $87.81 in 2000.

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