President Donald Trump stated that the US government will retain guarantees and an oversight role over Fannie Mae and Freddie Mac even if they are taken public.
The companies have been under government conservatorship since the 2008 financial crisis and have returned to profitability, with shares surging last week when Trump considered a public offering.
Trump’s statement reduces the risk that the government would leave Fannie and Freddie without a financial backstop, which could have led to higher mortgage rates. Bloomberg Intelligence’s Ben Elliot reports. (Source: Bloomberg)
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Fannie, Freddie to Keep US Guarantee If Taken Public, Trump Says
