(Reuters) – Bill Ackman believes that U.S. President-elect Donald Trump will take steps to release Fannie Mae and Freddie Mac from conservatorship, potentially transitioning them back into private companies, the billionaire investor announced on Monday.
Following Ackman’s statement on the social media platform X, shares of Fannie Mae saw an increase of 18.4%, while Freddie Mac experienced a rise of 18%.
In his post, Ackman suggested that Fannie Mae and Freddie Mac could exit conservatorship within the next two years, with the possibility of a public listing around 2026.
Fannie Mae and Freddie Mac, established by Congress as for-profit corporations with private shareholders, were tasked with expanding the national home lending market by purchasing home loans from private lenders and bundling them as mortgage-backed securities.
Following the housing market crash in 2008, the companies faced significant losses. To prevent severe repercussions for the U.S. economy, they were placed under conservatorship by the newly formed Federal Housing Finance Agency.