US EditionHedge funds could make billions from a Fannie Mae and Freddie Mac spin-off
- President Donald J. Trump announced plans on January 3, 2025, to privatize Fannie Mae and Freddie Mac, two government-sponsored enterprises supporting U.S. housing.
- This move follows the 2008 conservatorship during the sub-prime mortgage crisis and stems from ongoing debates about the roles of these entities in the housing market.
- The privatization proposal includes maintaining federal guarantees, repaying $190 billion owed to the government, and could shift Fannie and Freddie back to public markets amid investor interest.
- A coalition of 14 Democratic Senators led by Elizabeth Warren and Chuck Schumer sent a June 2025 letter raising concerns that reprivatization risks raising housing costs and prioritizing investor profits over homeowners.
- The decision to reprivatize signals significant change with possible market impacts, including greater influence by hedge funds and calls for careful evaluation of housing market stability.
13 Articles
13 Articles
America’s “Other” GSE Problem: The Federal Home Loan Banks, Part I - R Street Institute
President Donald J. Trump recently announced that, while his administration intends to “privatize” Fannie Mae and Freddie Mac, both enterprises will retain their guarantee from the federal government. Yet, the nexus between politics and finance in the United States is labyrinthine. Since at least 1916, one of the primary drivers of the federal government’s interference in financial... The post America’s “Other” GSE Problem: The Federal Home Loan…
Trump Administration Works to Find a Way to Spin Off Mortgage Giants
Attempting to complete a plan that started under President Donald Trump’s first term, the current administration is working to finally close the books on the mortgage crisis of 2008–09 by unwinding the federal takeover of mortgage giants Fannie Mae and Freddie Mac. “I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on oversee…
Hedge funds could make billions from a Fannie Mae and Freddie Mac spin-off
A longstanding bet made by a handful of hedge funds could finally pay off under Donald Trump’s presidency, but it risks sending shockwaves through America’s $12 trillion mortgage market.
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Hedge funds could make billions from a Fannie Mae and Freddie Mac spin-off From CNN: A long-held stake by a handful of hedge funds may finally yield returns under the Trump administration, but it risks sending shockwaves through America 's $12 trillion mortgage market. Last month, President Donald ... Article link
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