Replies to post #568757 on Fannie Mae (FNMA)

[obiterdictum]

What is the definition of forcefully?

The way I used it was to mean that the NYSE would delist FnF's stocks without the companies' (FHFA's) consent.

The NYSE does not take a unilateral approach to delisting and so delisting without consent is not standard NYSE protocol. A unilateral decision by the NYSE only occurs when no effort is made by a company to correspond, comply or show regard for NYSE rules and communications.

Maybe "forcibly" would have been a better term.

Not much better unless qualified with NYSE criteria.

For someone who has, in the past, chosen to define words in a non-traditional way, I would have expected you to glean that from the context rather than insisting on a definition from a dictionary.

There is no supportive context for that in the NYSE Listed Company Manual unless there are certain given conditions as mentioned above.

So there is a 13 months, 2 day period before the NYSE sent a non-compliance notice again on 11/15/2010.

How is it that another notice was not sent earlier than 11/15/2010?

Did you mean 6/15/2010?

Yes.

From the time the 30 or more consecutive trading days below $1.00 were first noticed by NYSE personnel, the NYSE personnel had 30 business days or less to prepare and process a delisting, an official Fannie Mae record, notice, file review, approvals, letter production and other red tape.

So it can be asked: How is it that the NYSE did not send a non-compliance notice 30 consecutive trading days after May 11, 2009, that is, on or after June 23, 2009, and before Fannie began trading above $1.00 starting August 10, 2009 till May 17, 2010?

Yes, this is a more clear way of asking the question. The 13 months comment I made was not, as you correctly point out, entirely appropriate due to the rise in the common share price above $1 in the meantime. There is still an oddity here, though ultimately irrelevant due to DeMarco's later voluntary delisting.

Not having FHFA/Fannie Mae's delisting correspondence hampers knowing precisely what happened after May 11, 2009. To further close out any notion of a favor given outside of NYSE rules, the NYSE, at its sole discretion, can allow an additional 6 month cure period if the initial cure period is unsuccessful, a grace period as previously noted in the possible explanations of why there was no price non-compliance notice sent in the 30 days after June 23, 2009.

If the company fails to cure the Filing Delinquency within the Initial Cure Period, the Exchange may, in the Exchange’s sole discretion, allow the company’s securities to be traded for up to an additional six-month period (the “Additional Cure Period”) depending on the company’s specific circumstances. If the Exchange determines that an Additional Cure Period is not appropriate, suspension and delisting procedures will commence in accordance with the procedures set out in Section 804.00 of the Listed Company Manual. Section 8 - 801.00 - Policy - https://bit.ly/2Vvjdfz

Does a company have to delist all of its shares (common and preferred) if any one of them does not meet the various share price requirements?

Not necessarily. Such a delisting of both common and preferred can occur under specified conditions. According to Section 8 - 801.00 in the NYSE Listed Company Manual:

When a company which has fallen below any of the continued listing criteria has more than one class of securities listed, the Exchange will give consideration to delisting all such classes. However, the Exchange may continue the listing of one class of securities regardless of its decision to delist another class. This circumstance would usually occur when a class of listed securities falls below certain of the Exchange's distribution criteria. Any issue convertible into common stock customarily is delisted when the related common stock is delisted, except that a debt security convertible into a listed equity security will be reviewed when the underlying equity security is delisted and will be delisted when the underlying equity security is no longer subject to real-time trade reporting in the United States. In addition, if common stock is delisted for violation of any of the "Corporate Responsibility" criteria in Section 3 of this Listed Company Manual, the Exchange will also delist (i) any listed debt securities convertible into that common stock and (ii) any specialized securities listed pursuant to Section 703 of the Manual the price of which is related to that common stock.