Overview

• Citigroup’s Jane Fraser and Bank of America’s Brian Moynihan met President Trump on August 6 to pitch underwriting public share offerings for the government-backed mortgage giants.
• JPMorgan’s Jamie Dimon and Goldman Sachs’s David Solomon previously presented proposals on structuring and valuing the IPOs during late-July White House discussions.
• The Treasury and Federal Housing Finance Agency are soliciting formal proposals from major banks to design and underwrite what could become one of history’s largest public offerings.
• Over-the-counter shares of Fannie Mae and Freddie Mac fell more than 3% as investors weighed the impact of shifting from government conservatorship to private markets.
• Housing experts warn that transferring the federal backstop to private investors may drive up mortgage rates and reduce credit access for American homebuyers.