Can this happened? My Question is if the stock price falls below $x , then it has to be delisted from NYSE and trade on the pink sheets?
The exact rules are complicated but a company has to be in really bad shape to be automatically delisted (like file for bankruptcy while having small float and distribution). FNM still has a market cap of $1B (why is another question) and I think NYSE would take lots of heat from Treasury if they delisted it anytime soon. Almost all the criteria for delisting are “NYSE will consider delisting if…” I’ll bet that NYSE tries to keep it listed until Congress decides on a new format for the company that gets rid of the current equity (which seems to me to be a certainty).
NYSE said they will not delist the stocks even though they are below $1.00 per share. S&P 500 will replace them though.
so how about the trillions in notional of swaps on these guys unwinding
Now that’s an interesting question (you are talking about the CDS unwinding, yes?). This will be a fascinating process to watch.
They’re getting the boot from the S&P by the end of the day and are being replaced by CRM and FAST.
Amazing. FNM being replaced by a screw company…
how can they have any MV at all? this should be a total equity wipeout.
Ironic that FNM is being replaced by a screw company.
I agree with Joey, for EE who lost value in retirement/stock option and for large funds who own it, delisting will impose liquidity cost, I don’t think Treasury or Congress will agree to it happening.