Fannie, Freddie Shares Jump on Trump's $1 Trillion Remark, Then Surrender Gains
Updated
Updated · Bloomberg · Jun 5
Fannie, Freddie Shares Jump on Trump's $1 Trillion Remark, Then Surrender Gains
2 articles · Updated · Bloomberg · Jun 5
Summary
Fannie Mae and Freddie Mac common shares spiked at Friday's open after Donald Trump said the mortgage-finance giants were probably worth $1 trillion, but the rally faded as investor skepticism set in.
Trump made the valuation comment at the White House on Thursday during remarks focused on the coal industry, giving the stocks a fresh jolt after a volatile week.
Bill Pulte's appointment earlier this week from FHFA chief to acting director of national intelligence had already pushed the shares lower by clouding long-running plans to begin selling the government's stakes in both companies.
The reversal underscored how heavily Fannie and Freddie trading still depends on political signals about their future, especially any path toward ending government control.