Business and Finance
Business and Finance
Fannie Mae, Freddie Mac shares surge after federal agencies reveal privatization path
- Shares of Fannie Mae and Freddie Mac , the mortgage giants under U.S. government control since 2008, surged to multi-year highs on Friday after federal agencies revealed a framework for their "orderly" release from conservatorship.
Shares of Fannie Mae and Freddie Mac surged on January 3, 2025, following a report by Reuters that the U.S. Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury revealed plans to privatize the two government-sponsored enterprises (GSEs). The announcement detailed a multi-step process aimed at reducing government control and returning the companies to private ownership, which could potentially lead to increased competition and innovation in the mortgage market. The news sparked significant investor interest, with shares of both companies experiencing double-digit percentage increases in early trading. The privatization plan includes steps like recapitalization, regulatory reform, and the eventual sale of government-held shares, with the goal of enhancing the stability and efficiency of the U.S. housing finance system.
Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/fannie-mae-freddie-mac-shares-surge-after-federal-agencies-reveal-privatization-2025-01-03/ ]
Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/fannie-mae-freddie-mac-shares-surge-after-federal-agencies-reveal-privatization-2025-01-03/ ]
Contributing Sources