Trump Plans Major IPOs for Fannie, Freddie

The Trump administration is advancing plans to launch initial public offerings (IPOs) for Fannie Mae and Freddie Mac later this year, potentially making it one of the largest IPOs ever. The plan, as reported by The Wall Street Journal, proposes selling 5% to 15% of the mortgage giants' stock to raise about $30 billion, valuing the two companies at approximately $500 billion combined. Both entities have remained under federal conservatorship since the 2008 financial crisis, with uncertainty over whether they will exit government control after the IPO. The administration has consulted with major bank CEOs about the privatization process. Shares of both companies surged following the announcement, though analysts warn that significant hurdles and market stability concerns persist. Previous efforts to privatize Fannie Mae and Freddie Mac have stalled, casting doubt on whether the IPOs can proceed within the current year.