Fremont to See Common Stock Delisted from NYSE
The New York Stock Exchange said earlier this week that it would delist Fremont General Corp. (FMT) from trading on the exchange prior to the opening of trading on Thursday. The company's common stock and its Trust Originated Preferred Securities are both set for removal, according to a press statement by NYSE Regulation Inc. The delisting comes as Fremont's common stock has been trading below the $1.00 floor set by the NYSE for more than 30 consecutive days. Beyond the pricing issues, the NYSE said that other factors led to the decision to delist, including the FDIC's categorization of the bank as "undercapitalized," as well as Fremont's recent announcement that it would be selling substantially all of its banking assets to CapitalSource TRS Inc. The move is the latest hurdle for the troubled lender, which has not yet filed its 2007 annual report with the Securities and Exchange Commission, and has had to defer interest on two obligations in connection with attempts to restructure outstanding debt. In a press statement released Wednesday, Fremont said it will begin trading its stock on Pink Sheets, effective Thursday. Its symbol has not yet been announced, as of when this story was published. Disclosure: The author held no positions in FMT when this story was originally published. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.