NEW YORK (CNNMoney.com) -- Mortgage finance giants Fannie Mae and Freddie Mac were ordered by their federal regulator to no longer trade their shares on the New York Stock Exchange, the agency announced Wednesday.
The Federal Housing Finance Agency (FHFA) and its predecessor agency have overseen the operation of Fannie Mae and Freddie Mac since September 2008, when they were both placed under conservatorship, a form of control similar to what is found in a bankruptcy process
FHFA said in a statement that the planned delisting is due to the weak stock price for both firms, and not due to any determination about a change in condition at the firms or decisions about their futures.
"A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets," said FHFA's acting director Edward DeMarco in the statement announcing the move.
Fannie's shares have hovered near the $1 level that is the minimum required by the NYSE since they were placed into conservatorship, while Freddie's shares have typically traded at less than $2. Fannie (FNM, Fortune 500) closed Tuesday at 92 cents while Freddie (FRE, Fortune 500) closed at $1.22.
