Overview

• Neither the White House nor the Federal Housing Finance Agency has officially confirmed the proposed offering, leaving its timing and scope unresolved
• The Treasury’s senior preferred shares and warrants account for nearly 80 percent of Fannie and Freddie equity and must be negotiated before any stock sale
• Fannie Mae and Freddie Mac shares surged about 20 percent in intraday trading Friday after the Wall Street Journal report
• President Trump has sought counsel from JPMorgan, Goldman Sachs and Bank of America executives on structuring, pricing and underwriting the potential deal
• Analysts warn that meeting year-end deadlines will require resolution of capital requirements, valuation disputes and preservation of the government guarantee