Fannie, Freddie Stocks Surge on Trump's Plan for IPOs

President Trump is exploring ideas to turn Fannie Mae and Freddie Mac back into public companies, meeting with big-bank CEOs, including Jamie Dimon and David Solomon. The market reacted positively to the news, with Fannie Mae and Freddie Mac stocks increasing 15% and 6% respectively after-hours. However, officials have signaled that conservatorship is not ending immediately and any shift would take time and political alignment. The talks have put a long-dormant privatization story back into play and give investors reason to price a potential regime change.

President Donald Trump is exploring ideas to turn Fannie Mae and Freddie Mac back into public companies, meeting with big-bank CEOs, including Jamie Dimon of JPMorgan and David Solomon of Goldman Sachs. The market reacted positively to the news, with Fannie Mae and Freddie Mac stocks increasing 15% and 6% respectively after-hours trading [1].

Fannie Mae and Freddie Mac have been under federal conservatorship since 2008 following the financial crisis, during which both entities became insolvent amid the subprime mortgage meltdown. Since then, the companies have rebuilt capital reserves, repaid their treasury loans, and returned to consistent profitability. Their shares, currently traded over-the-counter, have surged amid speculation over privatization plans [2].

Trump first signaled intentions to take the companies public in May, posting on Truth Social that he was giving "very serious consideration" to the move. The president is asking the CEOs to provide ideas on strategies for taking the organizations public and exploring how their banks might participate in the process [3].

The talks have put a long-dormant privatization story back into play and give investors reason to price a potential regime change. However, officials have signaled that conservatorship is not ending immediately and any shift would take time and political alignment [4].

References:
[1] https://www.reuters.com/business/finance/trump-seeks-pitches-bank-chiefs-fannie-freddie-stock-offerings-bloomberg-news-2025-07-31/
[2] https://www.indiatoday.in/world/us-impact-feature/story/trump-engages-bank-ceos-on-fannie-mae-and-freddie-mac-stock-offering-plans-glbs-2764495-2025-08-01
[3] https://themortgagepoint.com/2025/08/01/trump-inching-closer-toward-fannie-freddie-privatization/
[4] https://seekingalpha.com/news/4476132-trump-taps-bank-ceos-for-pitches-on-fannie-mae-freddie-mac-stock-sale---report