Market Chatter: Trump Administration Considers $30 Billion Stock Sale of Fannie Mae, Freddie Mac

BY MT Newswires | AGENCY | 08/08/25 12:32 PM EDT

12:32 PM EDT, 08/08/2025 (MT Newswires) -- The Trump administration is preparing to sell stock in Fannie Mae and Freddie Mac in a deal that could raise around $30 billion and begin later this year, The Wall Street Journal reported Friday, citing people familiar with the matter.

The companies, which bundle and sell mortgages, have been under government control since the 2008 financial crisis and rely on a government-backed guarantee to protect investors, the report added.

The stock sale could value Fannie and Freddie at $500 billion or more combined, with the government potentially selling 5% to 15% of their shares. Officials are still debating whether the mortgage giants would IPO as one company or two separate entities, the report said, adding that there is no guarantee the deal will move forward.

Efforts to prepare for an initial public offering began months before Trump's re-election, the media outlet had reported last year.

Fannie Mae and Freddie Mac didn't immediately reply to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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