Investors hoping for the release of Fannie Mae and Freddie Mac from government control under the Trump administration may be disappointed. Despite Trump's stated support for privatization, there are no active plans and limited political capital to pursue it. Critics argue that it would disrupt the mortgage market and potentially benefit already wealthy shareholders.
Investors who have convinced themselves—or been convinced by wealthy hedge fund managers talking their books—that the Trump administration is determined to release Fannie Mae and Freddie Mac from the government control are likely in for a painful surprise., we discussed the history of efforts by investors to score a windfall through their shares of the common and junior preferred shares of Fannie and Freddie.
. There are no active plans within the Trump administration to release them; and while Trump supports release in theory, people familiar with the president’s thinking say they do no expect him to spend any political capital to bring it about. The priority of issues like trade, immigration, energy, taxes, ending DEI and ESG mandates, and taming inflation are likely to leave little time for breaking new ground on GSE policy.
A big challenge to any attempt to turn Fannie and Freddie into normal companies not backed by the government is how towithout killing off their ability to provide stability and liquidity to the mortgage market. This is no easy task and many market participants are skeptical it can be accomplished at all.
Treasury Secretary nominee Scott Bessent testifies during his Senate Finance Committee confirmation hearing on January 16, 2025.
Fannie Mae Freddie Mac Trump Administration Privatization Mortgage Market
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street Bets on Trump to Unleash Fannie and Freddie from Government ControlInvestors are betting that Donald Trump will privatize Fannie Mae and Freddie Mac, government-sponsored entities central to the U.S. mortgage market. Shares of the companies have soared since the election, driven by hopes of a windfall for investors if the companies are released from government control. However, with no concrete action from the administration, this optimism may prove to be 'irrational exuberance'.
Read more »
Trump Administration Unlikely to Release Fannie Mae and Freddie MacInvestors betting on the release of Fannie Mae and Freddie Mac from government control are likely to be disappointed. The Trump administration has no active plans to privatize the companies, and while President Trump supports the idea in theory, he is unlikely to expend political capital on it. The priority of other issues, like trade, immigration, and taxes, is likely to leave little time for GSE policy. The Treasury Secretary nominee, Janet Yellen, has also expressed little interest in the issue.
Read more »
Ackman Predicts Fannie and Freddie Privatization by 2026Investor Bill Ackman expects President Trump to privatize Fannie Mae and Freddie Mac, leading to a public stock listing around 2026.
Read more »
Breitbart Business Digest: Investors Will Likely Be Disappointed with Bets on Fannie and Freddie’s ReleaseSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
News Roundup: Mega Millions Jackpot Surges, Trump Cabinet Fate Unclear, Ohtani Wins Athlete of the YearThis news roundup features a variety of stories, including the surging Mega Millions jackpot, uncertainty surrounding Trump's cabinet picks, Shohei Ohtani's third AP Male Athlete of the Year award, and more.
Read more »
News Roundup: Mega Millions Soars, Trump Cabinet Fate Uncertain, Ohtani Wins Athlete of the YearThis news roundup covers various topics including the Mega Millions jackpot reaching over $1 billion, the uncertain future of Trump's Cabinet picks, Shohei Ohtani's third AP Male Athlete of the Year award, and other notable events.
Read more »