Fannie Employees Can't Trade Firms Stock
Fannie Mae issued a "blackout" barring employees from buying or selling stock. "Fannie Mae has barred its 5,000 employees from buying or selling company stock for the foreseeable future, as the mortgage finance giant moves ahead with a multibillion-dollar restatement and deals with federal investigations into its accounting practices."
It's odd that the report comes from internal emails and not a press release. "Fannie Mae told workers that the move is designed to protect them from inadvertently violating securities laws triggered when insiders trade while they are aware of material information that is not widely available in the market."
"The District-based company cited its 'inability to make public filings with the Securities and Exchange Commission, the increasing number of employees supporting our restatement effort, and the continuing progress of internal and external reviews and investigations' as a rationale for the ban. "
"It is possible that employees will gain access to data 'that has to do with the substance of the restatement, such as how good or bad it is going to be, things employees can pick up by what's going on in the halls.'"