NEW YORK–Billionaire investor Bill Ackman has suggested the U.S. government merge government-sponsored enterprises Fannie Mae and Freddie Mac, the foundation for mortgage lending in the U.S., saying the move would help reduce mortgage rates and achieve huge synergies both in their operations and in the trading price.
As the CU Daily reported here, the Trump administration is pushing forward with a plan to privatize the two companies through an initial public offering later this year.
A sale of Fannie and Freddie, which have been operating under government ownership since the mortgage crisis of 15 years ago, could raise $500 billion combined, some analysts have predicted.
In a post on X, Ackman, who has held stakes in Fannie and Freddie for more than a decade, said the merger would also reduce the cost and risks of government oversight as there would be only one institution that would require oversight by the Federal Housing Finance Agency.
