Donald Trump’s plans for Fannie and Freddie would mean payday for hedge funds
- On May 21, 2025, President Donald Trump announced he is seriously considering privatizing government-backed mortgage giants Fannie Mae and Freddie Mac in the United States.
- This consideration follows years of emergency legislation, including the 2008 Housing and Economic Recovery Act, which placed the undercapitalized firms into conservatorship to stabilize the mortgage market after the financial crisis.
- Fannie Mae and Freddie Mac together manage nearly $7 trillion in mortgage loans, supported by a government-backed safety net, while investors like hedge fund manager Bill Ackman stand to gain if the agencies return to private ownership.
- Experts warn that privatizing these entities risks reigniting speculative cycles in mortgage-backed securities that could raise mortgage costs for American families and expose taxpayers to future bailouts.
- The Trump administration plans a gradual public offering with continued federal oversight during transition, aiming to repay government investment while navigating the legal and financial complexities of ending conservatorship.
15 Articles
15 Articles
Breitbart Business Digest: A Better Way to End the Bailout of Fannie and Freddie
As the Trump administration looks to resolve the long-running conservatorship of Fannie Mae and Freddie Mac, three priorities have emerged. The post Breitbart Business Digest: A Better Way to End the Bailout of Fannie and Freddie appeared first on Breitbart.
Fannie Mae and Freddie Mac had to be nationalized in the financial crisis. Now President Trump wants to bring the mortgage financiers back to the stock market: bad news for house buyers, good news for two billionaires.
Biden invited another housing crash. Trump can stop it
Although Fannie Mae and Freddie Mac, two government-backed mortgage giants with a taxpayer-funded safety net, helped crash the economy in 2008, the Biden administration in its final days quietly laid the groundwork to set them loose again. The goal? End their conservatorship, the federal leash that keeps their taxpayer-funded gambling in check. Last month, President Donald Trump said he would soon make a decision on the proposal. Hopefully, he a…
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