Saturday, November 22, 2008

Little Pink Sheet Houses for you and me

On November 17, 2008, Freddie Mac (formally, the Federal Home Loan Mortgage Corporation) received a notice from the New York Stock Exchange (the “NYSE”) that we had failed to satisfy one of the NYSE’s standards for continued listing of our common stock. Specifically, the NYSE advised us that we were “below criteria” for the Exchange’s price criteria for common stock because the average closing price of our common stock over a consecutive 30-trading-day period was less than $1.00 per share. As a result, the NYSE informed us that we were not in compliance with the NYSE’s continued listing criteria under Section 802.01C of the NYSE Listed Company Manual.

Under NYSE rules, we must notify the NYSE by December 2, 2008 of our intent to cure this deficiency by bringing the common stock share price and average share price for 30 consecutive trading days above $1.00, or our common stock and each of our listed series of preferred stock will be subject to suspension and delisting procedures. If we notify the NYSE that we intend to cure this deficiency, we will have six months from November 17, 2008, subject to monitoring by the NYSE, to cure the deficiency before the NYSE initiates suspension and delisting procedures. We are currently working with our Conservator, the Federal Housing Finance Agency, to explore options relating to this deficiency and have not yet determined our response or any specific action we will take as a result of the Exchange’s notice with respect to this deficiency

1 comment:

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