Schemes for Privatizing Freddie and Fannie
#John #Paulson, the hedge fund billionaire, 🔸could score big if the federal government’s housing finance companies, Freddie Mac and Fannie Mae, are privatized.
He and #Bill #Ackman of Pershing Square Holdings,
another supporter of Mr. Trump’s,
each purchased stakes in Fannie and Freddie, 🔸which the federal government spent $187 billion to bail out in 2008.
There is no formal public accounting of just how many preferred shares Mr. Paulson still controls, and a spokesman for Mr. Paulson declined to discuss the matter.
Mr. Ackman’s investment in Fannie Mae common stock alone included 115.5 million shares, or 10 percent of the total.
Under the new Trump administration, John Paulson, the hedge fund billionaire, could cash out of his investment in the federal government’s housing finance outfits, Freddie Mac and Fannie Mae.
⭐️What is clear is that Freddie and Fannie stocks surged at least 140 percent since Mr. Trump was elected,
a hint of profits that could soon be secured if the privatization goes ahead.
⚠️Advisers and former aides to Mr. Trump have already predicted that the companies are likely to go private during his new term,
💥although it might require bypassing approval by Congress.
Mr. Paulson declined requests to comment. In an interview with Bloomberg Television in September, he agreed the time had come for the federal government to unload Fannie and Freddie.
“They are now in a position where they’re fairly well capitalized,” Mr. Paulson said, “which would make privatization logical
https://www.nytimes.com/2024/11/17/us/politics/trump-presidency-billionaires.html?smid=nytcore-ios-share&referringSource=articleShare