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Trump threatens to take Fannie Mae and Freddie Mac public and oversee them himself [1]
['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']
Date: 2025-05-28
I already wrote a diary about how Fannie Mae and Freddie Mac were already public corporations and traded on over-the-counter (OTC) markets for stocks that are less fluid than stocks in the Dow Jones Average, Nasdaq or S&P 500. The first announcement Trump made thinking about taking them public shot their values up 40%. Not today.
Currently, Fannie Mae and Freddie Mac are under conservatorship by the Federal Housing Financing Agency. Going public would mean private investors would own the companies. Loan policy interest rates would go up from them, so the interest rates for all mortgages would go up.
It's best for the consumer to leave things alone. It's big business that will profit at our expense if they go public. Shareholders always have a say in corporation policy and their reasoning it is always want the company to make more money so they get higher dividends or stock price.
Trump tries to sell the idea to the public that it's a good idea, but it won't be.
"Our Great Mortgage Agencies, Fannie Mae and Freddie Mac, provide a vital service to our Nation by helping Americans reach the American Dream --- Home Ownership."
First off, they are not "agencies." They are government sponsored enterprises. They already help Americans with home ownership. Taking them public will mean fewer mortgages available and at higher interest rates.
"I am working on TAKING THESE AMAZING COMPANIES PUBLIC..."
It won't be long before they are no longer "amazing."
"... I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stand strong in my position on overseeing them as President."
If they go public, the US government has nothing to do with them anymore. If you were to oversee them, they would head straight back into bankruptcy like they faced in 2008.
"These Agencies are now doing very well..."
They aren't agencies, you blithering idiot. They are doing well because they have been under the conservatorship of the Federal Housing Finance Agency.
This is another bad idea for us, and a great one for billionaires to rake in more money with a very secure investment. With Trump behind it, it's going to go the way of his tariffs. Downhill.
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