Why 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 that a second Trump administration could lead to the privatization of Fannie Mae and Freddie Mac, two major players in the U.S. housing market that have been under government control since the 2008 financial crisis. He stated there is a 'credible path' for their privatization within two years, potentially culminating in an IPO in 2026. Ackman expressed confidence in this outcome citing Trump's penchant for big deals and emphasized that it could generate significant profits for the government. The two companies previously profited after Trump’s election, with stocks surging by 168% and 138% for Freddie Mac and Fannie Mae respectively since then. Ackman has been invested in these companies for over a decade and views their separation from government conservatorship as not just beneficial for shareholders but also as a fiscal benefit for the U.S. government.