Overview
- Pershing Square's Bill Ackman, the largest common shareholder of Fannie Mae and Freddie Mac, called on the Trump administration to pause efforts to sell shares or end government control.
- Ackman proposed three steps: recognize that the bailout has been repaid, exercise Treasury warrants to confer a 79.9% stake to taxpayers, and relist the companies on the New York Stock Exchange.
- He estimates the taxpayer-owned stake could exceed $300 billion in value and says Treasury and the FHFA could execute the plan as soon as this year.
- Arguing an offering is not feasible now, Ackman cites needed governance changes, a capital rule he views as too tight at roughly 4.5% versus his 2.5% target, and unclear FHFA authorities after any listing.
- The push contrasts with FHFA Director Bill Pulte’s privatization vision, which includes a potential merger valued near $500 billion and an IPO of 5% to 15% that analysts say may be difficult to complete this year.