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Donald Trump’s plans for Fannie and Freddie would mean payday for hedge funds
- In late May 2025, President Donald Trump announced he was seriously considering privatizing Fannie Mae and Freddie Mac, government-backed mortgage enterprises.
- This follows a background where Fannie and Freddie’s undercapitalization and risky mortgage activities contributed to the 2008 financial crisis, leading to their federal conservatorship under HERA legislation.
- These government-backed entities currently have mortgage portfolios totaling approximately $7 trillion, with investors like Bill Ackman’s Pershing Square Capital Management making substantial investments based on expectations of a future privatization.
- An expert warned that since Trump has publicly acknowledged the government’s guarantee of these companies, accounting rules would require them to be recorded as government entities, significantly increasing the national debt by trillions and pushing the U.S. beyond its debt limit.
- Privatizing without resolving taxpayer risk and regulatory oversight could revive risky speculation, placing both Fannie, Freddie, and taxpayers at financial risk once again.
18 Articles
18 Articles
OP-ED: America Urgently Needs a New Affordable Housing Agenda
BLACKPRESSUSA.COM NEWSWIRE — In late May, Trump announced he is “giving very serious consideration” to taking Fannie Mae and Freddie Mac public again. These government-backed mortgage giants were central players in the last financial collapse. Under pressure to expand homeownership without oversight, they helped inflate the subprime mortgage bubble. Ten million Americans lost their homes. The institutions got bailed out. Families didn’t.
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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