Overview

• President Trump met with JPMorgan’s Jamie Dimon and Goldman Sachs’s David Solomon at the White House on July 31 and plans to meet Bank of America’s Brian Moynihan next to review their pitches.
• He is asking CEOs to outline strategies for taking the government-sponsored enterprises public through a large stock offering and for potential bank involvement in underwriting.
• Fannie Mae and Freddie Mac shares have jumped on over-the-counter markets as investors price in a possible privatization move.
• Since entering conservatorship in 2008, the two firms have repaid Treasury loans, rebuilt capital reserves and returned to profitability.
• Economists caution that privatization without removing government backstops could drive up mortgage rates and leave taxpayers liable for future bailouts.