Citigroup Surges 1.64% on $1B Volume Ranks 87th as Privatization Talks Spark Mortgage Market Shifts

On August 8, 2025, Citigroup (C) closed with a 1.64% gain, trading on $1.00 billion in volume that ranked it 87th among U.S. stocks. The rally followed a high-profile meeting between CEO Jane Fraser and former President Donald Trump to discuss privatizing Fannie Mae and Freddie Mac, two government-backed mortgage entities under federal conservatorship since 2008.

The proposed privatization aims to transition these entities to public ownership while maintaining regulatory oversight. Analysts note this could reshape mortgage finance, altering the role of major banks like Citigroup in the sector. The administration’s strategy emphasizes involving private-sector expertise in the transition, with Fraser’s participation signaling Citigroup’s potential involvement in privatization bids.

Market observers highlight the political and economic stakes of the plan. Unlike tariffs, mortgage reforms carry complex legal and governance implications that could ripple through the banking industry. The discussions align with broader efforts to stabilize housing markets while balancing public and private interests, a move that has sparked speculation about regulatory shifts and long-term profitability for financial institutions.

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