Bill Ackman is 'confident' Trump will privatize Fannie Mae and Freddie Mac

Published On Dec 31, 2024, 12:28 PM

Billionaire investor Bill Ackman believes there is a credible path for Fannie Mae (FNMA) and Freddie Mac (FMCC) to be privatized during a potential second Trump administration. He speculates that these mortgage giants could be removed from government conservatorship and transitioned into private companies within the next two years, potentially leading to an IPO in 2026. Following Ackman's confident remarks, the stocks of both companies surged, reflecting renewed investor interest. However, Ackman cautioned that there is still significant uncertainty surrounding this outcome, advising investors to limit their risk exposure.