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Privatization of Fannie and Freddie Appears to be Gaining Momentum
More evidence is coming to light that the White House seeks to privatize Fannie Mae and Freddie Mac, according to published reports. Although an initiative to do so during the first Trump administration didn’t reach fruition, the Wall Street Journal reported that the President is considering issuing an executive order for housing-related departments to study privatizing the GSEs.
Such privatization could take the form of rolling Fannie and Freddie into a proposed U.S. sovereign wealth fund, Treasury Secretary Scott Bessent said on a podcast this past weekend. “Government has a big stake in Fannie Mae and Freddie Mac … where does that go?” Bessent said when asked about the sovereign wealth fund.
Stocks of both Fannie and Freddie have risen more than 350% since the election on optimism that the current administration could take them private, Yahoo Finance reported. The new speculation occurs as William Pulte, the new director of the Federal Housing Finance Agency, shook up the boards of both GSEs, installing himself as chairman and removing Freddie CEO Diana Reid.
- ◦Financing
- ◦Policy/Gov't
