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As If A Million HFT Frontrunning Voices Cried Out And Were Suddenly Silenced: Fannie And Freddie To Delist From The NYSE
The two stocks that have been a perennial churn magnet for every liquidity-rebate collecting, and predatory HFT algorithm in existence, and on occasion have amounted to 20% of total market volume, have been halted and are announcing their intention to delist from the NYSE after receiving a directive from the FHFA. Look for some really strange market behavior today as quants have to gut and completely recalibrate their signals. The FHFA noted that the decision to delist FNM and FRE is related to "stock exchange requirements of price levels, curing deficiency." How about the decision is based on the requirement to not trade companies which are so bankrupt not even the US government wants them on its balance sheet. And as we have reported previously, the FRBNY is perfectly ok with even taking bankrupt stocks as collateral in the discount window. Tells you something about the quality of the GSE "assets."
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"which are so bankrupt not even the US government wants them on its balance sheet"
Tyler, you rock
I hear ya..."When there's no room in hell the dead shall walk the earth"
Great quote from Dawn of the Dead!
http://www.youtube.com/watch?v=0Su_9nk5ua8
Your allusion is correct on so many levels. The debts and what they represent are US!
Does this mean I'm going to be getting calls all day from pink sheet penny stock pumpers talking about 'two emerging growth companies in the mortgage space'?
LOL
I was thinking the same thing when I saw the headline. I get enough calls each day from pushers (my term of excrement) without some hot "issue" to reload the auto dialers.
[robotic voice] Does not compute. Does not compute. System failure. Goodbye Dave.
LOL
I thought the decision to back them with billions and billions was so that they can stay afloat. And now theyre slowly, very quietly, removing themselves from the spotlight that is the NYSE so that we forget about them? And what about your monies?
South Park bank scene, yep!
...annnnnnnnd... it's GONE!
That's my line!
That's why they're delisting them--shareholders have a right to view financial statements, and sue if other shareholders are getting favorable treatment. So migrate away from having shareholders=no public insight into how bad it is.
This is "hide the weenie" written on a grand scale.
Hey Tyler, can you call Goldman or Paulson and see if we can get a derivative bet against the American taxpayers? LOL I would take that bet huge. Taxpayers are screwed now, as Benny Boy just opened the floodgates for QE 2.0 for housing.
You can in a roundabout way -- now that you can "bet" on the movie business.
New Hollywood Futures Market Tempts Investors
That's the way to play the consumer.
And of course, now we see why they pumped the market up 200 points yesterday, so they can crash it 400 today.
What, no reverse split?
There's only so many 1-for-20's you can do...
Auctioneer's voice is heard over the PA system:
"Can I get a reverse bid of 1 for 20?"
"1 for 20?"
"Come on people, we're talking Fannie and Freddie..."
"Barney Fwank is going to be very disappointed in you."
deafening silence...
"OK, how about 1 for 50?... No?"
"1 for 100?"
crickets chirping in the back ground...
A lone bidder says "I'll take 'em at market."
Gavel bangs.
"Sold to Mr. OTCBB"
"Next lot, €500,000,000,000 Greek and Spanish bonds."
Per Businessweek..."Two companies removed from the Russell 1000 last year because their share prices were less than $1 -- Freddie Mac and Sirius XM Radio Inc. -- are likely to rejoin the benchmark, according to ITG."
Whoops...lol
http://www.businessweek.com/news/2010-06-11/index-managers-face-biggest-...
You can't go to the Russell 1000 when you go to the OTC market LOL What moron released that stupid article?
You'd be surprised how many "business" "reporters" have no background in business. I personally think it's deliberate, to keep the reporter back on his or her heels, forcing them to become repeaters of news "releases" in order to get the story filed. You don't what someone who has a good idea how the system works asking difficult questions.
Nice doggy. Sit boy. Good boy. Now roll over and play dead. That's a good doggy.
Some more info - apparently this is just exchange rules, under $1 for 30 days and you're out: (from dec08, still true I guess)
http://www.mortgagenewsdaily.com/12012008_Fannie_Mae_Delisting.asp
and by my charts FNM has been sub-$1 since mid May.
Now this is predictable, the algos should have a delisting priced in.
So the question is who is holding the stock now, and what would you do if you were?
At least one of them, if not both, was under $1 for over 30 days before 2010.
I could swear someone told me one of the Fast Money guys was long FNM, we were talking about how ridiculous the show is, and that came up. Don't know who it was, maybe someone can find the clip or remembers it.
Oh dear me, the fav 25 is two down, as faves become road kill we get closer and closer to the witching hour, WHEN....
There can be only one! (sorry, shameless I know).... :)
Release the Hounds (ahem!) The QE N! OR
Scotty, I need more paper currency or we're all debt.
+1M FRE/FNM
There goes 30% of the NYSE's volume....
LOL, I was thinking the same thing. If they got rid of Citi, they might as well shut the place down.
Just... wow.
The 'you couldn't make it up' department just added a few extra storage containers.
They should have both been de-listed the moment they became fully nationalized. What total pieces of shit! Left on the exchange for two years so that speculators could play fucking games.
Are you kidding? This was the greatest money laundering scheme since internet poker.
Haha.
Frustrated at the lack of action in New Orleans? Want to be pro-active in helping in what is coming to the GOM?
Come, we can do something together…
http://aadivaahan.wordpress.com/prare/
Wow, look at them plunge.
http://www.google.com/finance?q=fnm
http://www.google.com/finance?q=fre
I feel very sorry for anyone foolish enough to have been holding these today.
Looks like something that was worth nothing is now worth less than nothing.
Only in America!
So who's going to be in the Big 10 Big 12 conference for HFT and how much are the hot dogs and jerseys going to cost.
How about opening up a new stock exchange only for bankrupt companies?
@Tyler: may the force be with you!
Yes the ZeroSheets. fnmq.zs freq.zs bpq.zs
The NYSE already has that business and it will fight tooth and nail to keep it.
Proposal: more radiohead lyrical references in titles.
Looks like "we" the citizens are going to get screwed again as the TBTF have been hiding their bad loans at these two dysfunctional GSE's for years.
Thanks Barney Franks you piece of SH*T!
People of Mass. wake-up.
On a related note, how is BBI still on the NYSE?
Maybe that dude who recommended it as an investment can tell us.
My first lesson in "diversification" came with these two turds. As I watched the value of my holdings go to essentially zero, my "advisor" explained that, "because fannie and freddie represented less than 2% of my overall holdings, it didn't really matter." Wow! "diversification" really works! He also failed to mention that as one of the largest shareholders of these stocks, there was no way they could unwind. Litigation is a bitch, fucker.
The questions on my mind have been already asked by two other commenters. Since there's no answer yet I'll place them again:
Who's buying today? Why? Who was buying yesterday? Why? What's the impact of today's closing price for the FRBNY?
I look forward for some answers.
Who is buying these. Me, thats who.
Actually, my limit order at $1.25 kicked in today while I was at work. Why did I buy again, after having sold at $$2.00 per share? Because these stocks fluctuate worse than Obama's campaign promises.
I am gambling, not investing, and I have said so a couple of times here.
But yes, I bought 1000 shares of FNMpH today.
BTW, they have a par value of $50.00 per share.
And Fannie controls about 3.5 TRILLION in mortgages that they are making a ~1.5% spread on.
As long as they havent gone through bankruptcy then I still have a long shot chance =)
But, I do understand that this is a pure gamble. (That has made me about 250% ROI in the last year...)
Village Idiot I hear you. When my Dad passed away I went t o retrieve his at the time, Smith Barney account. The <sarcasm on> financial advisers </sarcasm off> managed to turn his 100K into a 20K in about three years. Had put him in those blue chip stocks such as Worldcom and Enron while I am sure they were selling.