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The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to delist their common and preferred stock from the New York Stock Exchange since the stock is trading almost too low to remain within NYSE rules.

The NYSE has a minimum average closing price requirement of $1 over 30 trading days; stock for both of the enterprises has remained near that level for most months since their conservatorships began in September 2008.

In Fannie's case, the closing stock price has been below that $1 floor for the past 30 trading days, and NYSE rules require that it drop from the exchange or undertake a "cure" to restore it to the NYSE minimum. FHFA Acting Director Ed DeMarco said alternatives for such a cure would not assure restoration of the minimum price level or avoid loss of shareholder value.

Treasury's support of the entities through senior preferred stock purchase agreements was also a factor, said DeMarco. "A voluntary delisting at this time simply make sense and fits with the goal of a conservatorship to preserve and conserve assets," he said.

Instead of any national securities exchange, stock for Fannie and Freddie will be quoted on the Over-the-Counter Bulletin Board. The bulletin board is available to subscribing members and is not an issuer listing service.