WASHINGTON--President Donald Trump is weighing what could be the largest initial public offering in history: the sale of a stake in mortgage giants Fannie Mae and Freddie Mac.
The Wall Street Journal first reported the plan, which has not been finalized. According to a senior administration official, the White House is considering selling up to 15% of the companies’ shares in an IPO that could raise as much as $30 billion.
Trump has eyed a public offering of the two government-controlled entities for years. His first administration tried—but failed—to end their conservatorship, which was imposed during the 2008 financial crisis to keep them afloat. In May, Trump wrote on Truth Social that he was “giving very serious consideration to bringing Fannie Mae and Freddie Mac public” and would consult with his Cabinet before making a decision, CNN said.
In recent weeks, Trump has discussed the potential IPO with top Wall Street executives, including JPMorgan Chase CEO Jamie Dimon, Goldman Sachs CEO David Solomon, and Bank of America CEO Brian Moynihan, according to a source familiar with the talks, CNN noted.
Republican supporters of privatization argue that Fannie and Freddie are financially sound and no longer need government oversight. They also contend that selling shares could help generate much-needed revenue for a debt-laden federal government, CNN added.