US Financial Sector Lose Steam Today, As FHFA Delists FNM and FRE From NYSE

Financial stocks gave up prior session’s gains, as the broader market receded today on mixed news regarding the recovery of the US economy. Concerns over the health of certain European economies also added to the downturn. The tracker of the S&P’s financial firms, the Financial Select Sector SPDR XLF, was up 0.19%, by 1:25 pm. Enterprises Fannie Mae FNM and Freddie Mac FRE, which operate under government conservatorship, have been directed by the Federal Housing Finance Agency (FHFA) to get their common and preferred stock delisted from the NYSE and all other national securities exchanges. It is expected that common and preferred stock of the giant mortgage finance companies will be quoted on the OTC Bulletin Board after delisting from the NYSE. By 1:28 pm, shares of FNM were down 40.42% and FRE shares had shed 38.63%. Edward J DeMarco, Acting Director of FHFA, said, "FHFA’s determination to direct each company to delist does not constitute any reflection on either Enterprise’s current performance or future direction, nor does delisting imply any other findings or determination on the part of FHFA as regulator or conservator," On the economic front, May housing starts dipped to the lowest level since December, with the seasonally adjusted annual rate of housing starts down 10% at 593,000. Single-family homes starts plummeted 17% to 468,000 of seasonally adjusted rate, the lowest in a year. Read more from Benzinga's Markets.