Fannie, Freddie … and Donald
Trump’s plan to privatise GSEs may pose systemic risks if not done properly – and the Fed may have to intervene, say experts
In a post on social media on May 21, US president Donald Trump said he was giving “very serious consideration” to the idea of privatising Fannie Mae and Freddie Mac, and would be making a decision “in the near future”.
He added that the two government-sponsored enterprises (GSEs), which provide liquidity to the US mortgage market and are responsible for much of the country’s home loans, were “doing very well, throwing off a lot of CASH, and the time would seem to be right. Stay tuned!”
Fannie Mae
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