Trump Plans $30B Fannie, Freddie IPO Faces Hurdles

The Trump administration is moving forward with a plan to sell a 5% to 15% stake in mortgage giants Fannie Mae and Freddie Mac through an IPO that could raise about $30 billion and potentially value the firms at over $500 billion. Both companies have remained under federal conservatorship since the 2008 financial crisis, and previous privatization efforts during Trump’s first term were unsuccessful. High-level discussions have occurred with Wall Street bank CEOs, and the White House is considering whether to maintain federal guarantees and oversight after the IPO. The proposal has led to a sharp increase in the companies’ share prices. While supporters argue the move could reduce the federal deficit and return funds to taxpayers, critics warn of risks to mortgage affordability and market stability. Congressional approval and ongoing market uncertainties could still impede the plan.