SEC: Limit Fannie's Delisting Exemption

Securities and Exchange Commission Chairman Christopher Cox says the New York Stock Exchange should put a time limit on Fannie Mae's exemption from having its stock delisted because he doesn't want the GSE's exemption to become permanent."I am not trying to force a delisting," but there should be a penalty for not completing a restatement in a timely manner, Chairman Cox told the Senate Banking Committee. The chairman said the NYSE should reconsider Fannie's special exemption in light of the report by the Office of Federal Housing Enterprise Oversight documenting massive financial fraud at the government-sponsored enterprise. "I want to inform the committee that we have encouraged the New York Stock Exchange to amend its rule to put an expiration date on this exception, so that Fannie Mae -- and its investors -- understand that we expect Fannie Mae, like any other listed company, to remain in full compliance with the NYSE's listing standards," he said. Mr. Cox also called on Congress to mandate that Fannie Mae and Freddie Mac become SEC registrants and be forced to comply with all commission reporting requirements. According to testimony by Fannie Mae president and chief executive Daniel Mudd, Fannie Mae will complete its restatement by the end of this year.