Freddie Mac (FMCC) and Fannie Mae (FNMA) shares surged to their highest levels since 2008 following President Donald Trump’s comments that he is giving “very serious consideration” to privatizing the government-sponsored enterprises (GSEs). FMCC stock jumped 42% on May 22, while FNMA stock rose 51%.
The U.S. Treasury currently owns preferred shares and warrants for approximately 80% of both GSEs’ common stock, stemming from the bailout of these companies during the 2008 financial crisis. Trump indicated that he would consult with Treasury Secretary Scott Bessent and other officials before making a final decision.
