(Reuters) – Bill Ackman predicts that President-elect Donald Trump may take Fannie Mae (FNMA) and Freddie Mac (FREGP) out of conservatorship and make them privately held again. , billionaire investor Bill Ackman revealed on Monday.
Following Mr. Ackman’s post on social media platform
Fannie Mae and Freddie Mac could emerge from conservatorship within the next two years and go public around 2026, according to Ackman’s post.
Fannie & Freddie operates as a for-profit corporation with private shareholders and its mission is to expand the national mortgage lending market by purchasing mortgages from private lenders and repackaging them as mortgage-backed securities. Established by Congress.
When the housing market collapsed in 2008, businesses suffered overwhelming losses. To avoid devastating effects on the U.S. economy, they were placed in conservatorship under the newly created Federal Housing Finance Agency.
(Reporting by Arunima Kumar and Shivansh Tiwary in Bengaluru; Editing by Shinjini Ganguly)
