President Donald Trump is holding discussions with leaders of major U.S. banks to explore ways to monetize mortgage giants Fannie Mae and Freddie Mac, including plans for a significant public stock offering, Bloomberg News reported Thursday, citing sources familiar with the matter.
DISCUSSIONS ON MAJOR PUBLIC STOCK OFFERINGS
Trump’s meetings have included JPMorgan CEO Jamie Dimon, Goldman Sachs CEO David Solomon, and forthcoming talks are expected with Bank of America CEO Brian Moynihan. In these sessions, Trump is asking the bank chiefs for ideas and strategies on launching large-scale public stock offerings for Fannie Mae and Freddie Mac, and how their banks might participate in the process
BACKGROUND
Fannie Mae and Freddie Mac are mortgage corporations which have been under federal conservatorship since the 2008 financial crisis, when both firms became insolvent during the subprime mortgage collapse. Since then, they have rebuilt capital reserves, repaid their Treasury loans, and consistently posted profits. Their shares, traded over-the-counter, have surged recently amid speculation about future privatisation.
Trump first publicly considered taking the companies public in a May post on Truth Social. The plan appears to be gaining traction: share prices for both entities have risen in response.
NEXT STEPS AND BANK INVOLVEMENT
The president, through these ongoing meetings with top banking executives, aims to gather input on how best to privatise the government-sponsored enterprises (GSEs) and determine potential roles the banks could play in the public capital-raising process. Representatives for Bank of America and Goldman Sachs declined to comment, and the White House has not responded to Reuters’ request for comment.
Returning both, Fannie Mae and Freddie Mac to private ownership has long been debated in Washington. Efforts have repeatedly stalled due to the complexity and potential market impacts of such a move. Recent capital gains at both entities have renewed discussions, though significant regulatory, financial, and political challenges remain.
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With inputs from Reuters