Ackman predicts that Trump will drive the privatization of "Fannie Mae" and "Freddie Mac"! Shares of Fannie Mae and Freddie Mac surged over 30% upon hearing the news.

Hedge fund Pershing Square founder and American billionaire investor Bill Ackman said on Monday that the next US president, Donald Trump, who is set to return to the White House in January, may undo the government's control and regulation of Fannie Mae and Freddie Mac, which survived the 2008 financial crisis. If Trump pushes for the privatization of these "two entities" in his second presidential term, it could lead to them becoming private companies again and potentially listing independently on the US stock market as private entities rather than continuing to be under government control. After Ackman posted the above message on the social media platform X (formerly known as Twitter), the stock prices of Fannie Mae and Freddie Mac surged by over 36% and over 33% on the US OTC market by closing time. According to Ackman, known for his accurate predictions, he believes that Fannie Mae and Freddie Mac could break free from government control and regulation in the next two years, which could potentially lead to their independent listing on the US stock market around 2026. Fannie Mae and Freddie Mac are profit-making companies owned and regulated by the US government, but they operate as commercial entities with private shareholders. Their core mission is to promote liquidity in the US housing market by purchasing housing loans from private lenders and packaging them into mortgage-backed securities to expand the overall housing lending market in the US. They also provide institutional consulting and analysis services, issuing exclusive professional consulting and research reports for the US real estate industry. During the 2008 global financial crisis, when the US real estate market collapsed, these government-sponsored entities incurred significant losses. To avoid a catastrophic and irreversible impact on the US economy, Fannie Mae and Freddie Mac were formally taken over by government departments led by the US Department of the Treasury and the Federal Housing Finance Agency during the 2008 financial crisis, and were placed directly under the full regulatory oversight of the newly established Federal Housing Finance Agency after the crisis. During the 2008 financial crisis, the so-called "two entities" - Fannie Mae and Freddie Mac faced severe financial crises due to holding a large number of subprime mortgage loans. With the collapse of the real estate market, these two companies suffered massive losses. On September 7, 2008, the US government announced the takeover of Fannie Mae and Freddie Mac to prevent their bankruptcies from causing greater shocks to the entire financial system, providing up to $200 billion in funding to ensure the continued operation of these two companies. During the 2008 financial crisis, Fannie Mae and Freddie Mac were at the center of the storm, as their operations were closely tied to the risks in the US housing market. The "two entities" were considered "too big to fail" in the US housing market, and their position in the US housing market was equivalent to the core position of financial giant JPMorgan Chase on Wall Street. Both companies held a large number of securities assets related to subprime mortgages, the value of which rapidly declined as home prices plummeted and loan default rates surged. Trump is set to begin his second term in January, promising to reduce federal regulation on large companies, particularly on financial giants, and further cut taxes, increase oil production, and enforce strict immigration policies, indicating a strengthening US economy. This is seen as a positive factor for the stock market, with industries such as finance, technology, defense, and fossil fuels potentially benefiting significantly. "It is clear that this administration will be more friendly towards Wall Street and financial transactions. This enthusiasm is not new. Financial stocks have long been considered the preferred industry during Republican administrations, mainly due to expectations of relaxed regulations and creating a more favorable environment for major financial giants and large-scale mergers and acquisitions," said Jake Manoukian, head of investment strategy at JPMorgan Private Bank, in a report, indicating that his investment team is looking for more financial and asset management industry stock targets for their 2025 portfolio.