Trump could finally end one of the oldest financial fights on Wall Street

Published On Nov 21, 2024, 4:00 AM

Investors are increasingly optimistic that former President Donald Trump could end the government control over mortgage giants Freddie Mac (FMCC) and Fannie Mae (FNMA). Since Trump's election win, stocks of these companies have surged significantly. Major investors believe that a second Trump administration might result in privatization, a move seen as potentially beneficial for taxpayers and the housing market. The talk around privatization has sparked renewed interest in the stock of these firms, although there are concerns about the impact on credit access in the housing market and the details surrounding the transition to private ownership.