Trump Administration Plans IPOs for Fannie Mae, Freddie Mac

The Trump administration is planning to initiate initial public offerings (IPOs) for mortgage finance giants Fannie Mae and Freddie Mac later this year, potentially marking one of the largest stock offerings in U.S. history with a combined valuation possibly exceeding $500 billion. The government aims to sell between 5% and 15% of their stock, which could raise around $30 billion, while retaining oversight and implicit guarantees, as President Trump emphasized he would maintain a strong supervisory role. Both companies have been under federal conservatorship since 2008 following severe losses in the financial crisis, with the U.S. Treasury having bailed them out in exchange for preferred shares. The IPOs would represent a significant step toward returning these entities to private control, a goal pursued since the financial crisis and actively supported by Trump during his current presidency. Discussions about the IPOs have included consultations with major bank CEOs, and officials are debating whether to list Fannie and Freddie jointly or separately, with some policymakers preferring the government to maintain some level of backing. This move aims to reduce the federal deficit, increase market stability, and ensure continued mortgage financing availability, though the exact structure and timing remain under consideration.