Trump Wants Fannie Mae, Freddie Mac Shares To Rise Before 'Largest IPO of All Time,' Says Bill Ackman: The President 'Likes To See Stocks Soar' - Federal Home Loan (OTC:FMCC), Federal National Mortgag

Core Viewpoint - Billionaire investor Bill Ackman believes that the Trump administration is actively working to increase the share prices of Fannie Mae (FNMA) and Freddie Mac (FMCC) in anticipation of a potentially historic IPO [1] Group 1: Government and Market Dynamics - Ackman asserts that the administration's goal is to elevate Fannie and Freddie shares prior to a share sale, indicating a strategic push from the government [1] - He references Commerce Secretary Howard Lutnick's media appearances as part of the effort to boost stock prices [1] Group 2: Investment Perspectives - Ackman dismisses fears regarding potential dilution of investors through the conversion of senior preferred stock into common equity, stating that such concerns are misguided [2] - He emphasizes that a successful IPO hinges on adhering to the original terms of the senior preferred stock, which includes a 10% return for the SPS and a 79.9% government stake through warrants [3] Group 3: Financial Implications - Ackman describes the government's stake in Fannie Mae and Freddie Mac as a "$300 billion goldmine," highlighting their $7 trillion in mortgage guarantees and the 0.65% annual fees collected [4] - He supports the idea of a unified listing for both companies under the ticker symbol "MAGA," arguing that it would lower costs and risks associated with government oversight, leading to reduced mortgage rates and significant synergies [5] Group 4: Opposition Views - Some economists, like Peter Schiff, express concerns that a merger of Fannie Mae and Freddie Mac could create a monopoly in the U.S. housing finance market, potentially leading to greater moral hazards than those seen before the 2008 financial crisis [6]