Fannie and Freddie Delisted from NYSE

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machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Fannie and Freddie Delisted from NYSE

The ax falls on two worthless knaves:

Fannie Mae and Freddie Mac were told by their regulator to delist their common and preferred stock from the New York Stock Exchange.

“A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets,” said Edward DeMarco, acting director of the Federal Housing Finance Agency, chief regulator of the two companies.

The companies are expected to trade on the Over-the-Counter Bulletin Board, DeMarco said. 

Fannie and Freddie were taken over by regulators in 2008 as home prices collapsed and are 80 percent owned U.S. taxpayers. The U.S. Treasury had injected $145 billion into the companies to keep them solvent as of the first quarter of this year.

http://preview.bloomberg.com/news/2010-06-16/fannie-freddie-stock-to-be-delisted-from-nyse.html

My complaint is that the delisting should have occurred years ago, when the companies discovered reporting irregularities, moved in an army of accountants to scour the books, and stopped issuing earnings reports. Although their 'radio silence' on earnings manifestly violated NYSE listing requirements, the political clout of these Congressionally-chartered behemoths exempted them from the rules that ordinary private-sector companies must follow.

Fannie and Freddie are monuments to, and microcosms of, the braindead parliament of clowns which misbegot, misregulated, and mismanaged them from the day of their star-crossed birth. Don't you just love it -- a titanic $145 billion pumped into them, yet they trade on the OTC Bulletin Board along with vaporware software houses, late-night TV paste jewelry hawkers, and fly-by-night rhodium miners. Yes, the CONgressional darlings Fannie and Freddie have sunk to precisely the level of dignity they deserve.

As it is for Fannie and Freddie Fubar, so it will be for their deranged sponsor, the US Treasury. Like its reprobate corporate children, Usgov is insolvent but (temporarily) liquid. What Fannie and Freddie's defenestration from the NYSE tells us is that one day, busted US Treasurys will trade on the OTC Bulletin Board too, like call options on the possibility that the prostrate retarded giant can be electrocuted back into the semblance of life with cardio paddles. As ol' Junior Brown used to say, 'You're wanted by the police and my wife thinks you're dead.' Laughing

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
Re: Fannie and Freddie Delisted from NYSE
machinehead wrote:

Fannie and Freddie are monuments to, and microcosms of, the braindead parliament of clowns which misbegot, misregulated, and mismanaged them from the day of their star-crossed birth. Don't you just love it -- a titanic $145 billion pumped into them, yet they trade on the OTC Bulletin Board along with vaporware software houses, late-night TV paste jewelry hawkers, and fly-by-night rhodium miners. Yes, the CONgressional darlings Fannie and Freddie have sunk to precisely the level of dignity they deserve.

As it is for Fannie and Freddie Fubar, so it will be for their deranged sponsor, the US Treasury. Like its reprobate corporate children, Usgov is insolvent but (temporarily) liquid. What Fannie and Freddie's defenestration from the NYSE tells us is that one day, busted US Treasurys will trade on the OTC Bulletin Board too, like call options on the possibility that the prostrate retarded giant can be electrocuted back into the semblance of life with cardio paddles. As ol' Junior Brown used to say, 'You're wanted by the police and my wife thinks you're dead.' Laughing

Machinehead,

I don't know where have you been hiding, but welcome back.  Your perspective has been sorely missed around here.

Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 547
Re: Fannie and Freddie Delisted from NYSE

Machinehead's back, yay!

agitating prop's picture
agitating prop
Status: Platinum Member (Offline)
Joined: May 28 2009
Posts: 854
Re: Fannie and Freddie Delisted from NYSE

"Don't you just love it -- a titanic $145 billion pumped into them, yet they trade on the OTC Bulletin Board along with vaporware software houses, late-night TV paste jewelry hawkers, and fly-by-night rhodium miners."

 . Omg, I'm still laughing. Poor Fannie and Freddie! Though they could arise Nosferatu style, with billions more in bail out plasma, I don't know if they will able to stumble far from their coffin, after being stung by Mhead's humour stun gun. They may be too big to fail, but the delisting and satirization, show they are definitely not too big to flail. Wink

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