Overview

• The administration plans to sell approximately 5–15 percent of GSE shares to raise about $30 billion at a combined valuation near $500 billion.
• Key figures including President Trump, Bill Ackman and FHFA Director Bill Pulte have publicly backed merging Fannie Mae and Freddie Mac into one entity.
• Treasury and FHFA officials have consulted major banks such as JPMorgan, Goldman Sachs and Bank of America on structuring the share sale and potential merger.
• Market reaction was swift, with GSE share prices surging about 20 percent and hedge funds and underwriters positioned for substantial fees.
• Experts say new capital requirements, the need to uphold an implicit government guarantee and separate charters likely rule out a year-end IPO and formal merger.