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FirstFed Stock Now Trading on Over-the-Counter Markets

On February 26, 2009 the New York Stock Exchange (NYSE) issued a press release announcing that the common stock of FirstFed Financial Corp. was going to be suspended from trading prior to market opening on Wednesday, March 4th.  One of the NYSE’s requirements at the time for stocks traded on the exchange was that they maintain a “global market capitalization” over of 30-trading day period of at least $15 million. At the close of market on February 25th, our market capitalization was estimated at $5.5 million, which was the total value of our 13.75 million outstanding shares multiplied by the closing stock price of 40¢. 

Since March 4th, FirstFed has traded actively on the over-the-counter (OTC) markets.  Unlike larger exchanges like the New York and American stock exchanges where stock prices are determined on a centralized trading “floor”, OTC transactions occur electronically by phone or computer, putting traders in direct contact with each other to do business.  While these markets are comprised primarily of the stock of companies that don’t meet the requirements of major exchanges,  some companies choose this trading path over traditional exchange trading because of less regulation and lower cost benefits associated with OTC trading.

FirstFed OTC stocks are traded on the “Pink Sheets” --- named because they were originally printed on pink paper.  The pink sheets started out as a daily quote service provided by the National Quotation Bureau in 1913.  Typically companies found on the Pink Sheets don’t have the capitalization required to be listed on major exchanges, and / or don’t file statements with the Securities and Exchange Commission (SEC). 

Because FirstFed continues to file its financials and other reports with the SEC, we also trade on the Over-the-Counter Bulletin Board (OTCBB).  Firms whose stocks trade on the OTCBB must meet more stringent requirements for listing, one of which is maintaining a filing status with the SEC. Additionally, market makers and brokers that provide OTC quotes are regulated by the National Association of Securities Dealers (NASD).

The over-the-counter markets are extremely active and offer an alternative entry point for buying stock.  At the end of 2007, trading in over-the-counter securities exceeded $162 billion in dollar volume and $769 billion in share volume.  First Fed joins the mix of thousands of small, medium, large, and international companies that have attracted a different class of investor. 

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First Fed
Vision Statement

 First Federal Bank of California is committed to providing quality community banking by exceeding our clients' expectations in a personalized, relationship-driven environment. Our committment to excellence is based on the Bank's investment in the development of each employee.