Fannie, Freddie $30 Billion IPO Being Weighed for This Year

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The Trump administration is considering selling shares of Fannie Mae and Freddie Mac in an offering that could start as early as this year, according to senior administration officials.
The plan could value the government-controlled mortgage giants at some $500 billion or more and would involve selling between 5% and 15% of their stock with an offering expected to raise about $30 billion.
No final decision has been made and President Donald Trump is still weighing his options, one official said. The Wall Street Journal earlier reported the news.

Shares of both Fannie Mae and Freddie Mac surged as much as 22% in Friday trading, the most in more than two months.

The federal government bailed out the companies in September 2008 to stave off catastrophic losses during the financial crisis. Policymakers in Washington have struggled for years with what to do with the so-called government-sponsored enterprises. Congressional efforts to free the companies have repeatedly failed on concerns about the impact on mortgage costs and the firms’ commitment to affordable housing. One official said that Fannie and Freddie may stay in the conservatorship while being taken public.

Today's show features:

• Bloomberg TV & Radio International Economics & Policy Correspondent Mike McKee on reports of the Trump Administration planning IPOs for Fannie Mae and Freddie Mac
• Wendy Culter, Vice President at the Asia Society Policy Institute, on US trade policy news concerning India and China
• Bloomberg News Jerusalem journalist Dan Williams on Israel's security cabinet approving an operation to take control of Gaza City
• Mark Mahaney Senior Managing Director and Head of Internet Research at Evercore I-S-I ... On the Trump White House's impact on American tech companies

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