Wall Street banks tussle for roles in the high-stakes offering
Federal Housing Finance Agency (FHFA) director Bill Pulte has said the Trump administration is considering taking mortgage giants Fannie Mae and Freddie Mac public as early as the end of 2025.
In a series of social media posts, Pulte said President Trump is “opportunistically evaluating an offering this time around,” adding that it could happen before year’s end. “Combined, Freddie and Fannie have over $7 trillion of assets on their balance sheets,” Pulte wrote on X. “We are focused on running them like a business and taking out costs, so I don’t think there’s any limit to what they could be worth one day.”
The announcement comes as Trump renews efforts to release Fannie Mae and Freddie Mac from federal conservatorship, where they have remained since the 2008 mortgage crisis.
The two firms play a crucial role in the US housing system by purchasing home loans, packaging them into securities, and using the proceeds to fund new mortgages.
Long road to privatization
Fannie and Freddie were placed under government control during the subprime mortgage collapse after suffering heavy losses. Trump previously attempted to privatize the agencies during his first term, but the onset of the COVID-19 pandemic delayed those plans.
Now, with markets showing renewed confidence, the administration appears to be reviving the initiative. Since Trump’s reelection in November 2024, shares of both companies—traded over the counter—have surged more than 700%, giving them a combined market value of roughly $20 billion.
Analysts expect the FHFA to play a central role in coordinating any offering, including regulatory and capital structure considerations. The Treasury Department, which holds warrants to purchase about 80% of the companies’ stock, is also expected to participate in shaping the offering’s design.
Big banks vie for lead roles
Wall Street’s largest banks—including Goldman Sachs, Citigroup, JPMorgan Chase, Morgan Stanley, Bank of America, and Wells Fargo—have been courting the administration to secure roles in what could be one of the largest stock offerings in history.
Sources familiar with the discussions told The Wall Street Journal that Trump officials are envisioning IPOs that could value the combined firms at around $500 billion and raise roughly $30 billion. If achieved, that would eclipse Saudi Aramco’s 2019 debut as the biggest IPO ever.
Treasury secretary Scott Bessent and Pulte are reportedly leading the evaluation process, though differences in approach could delay final decisions.
