Trump Meets Bank CEOs to Discuss Fannie Mae and Freddie Mac Privatization Plans

WASHINGTON, Aug 6 (Reuters) – U.S. President Donald Trump met with Citigroup CEO Jane Fraser and Bank of America CEO Brian Moynihan on Wednesday to discuss the administration’s plans for privatizing mortgage financing companies Fannie Mae and Freddie Mac.

Sources familiar with the situation revealed that the meetings took place at the White House, although the White House declined to comment on the private meetings. The administration aims to take both firms public while maintaining regulatory oversight in the mortgage market.

Fannie Mae and Freddie Mac have been under federal conservatorship since the 2008 financial crisis and have since rebuilt their capital reserves and returned to profitability. Their shares have soared in recent months amid speculation about their potential privatization. The companies guarantee more than half of the nation’s mortgages.

Trump’s administration plans could impact mortgage prices and accessibility if the companies become fully privatized, analysts have noted. “The political cost will be more immediate,” said TD Cowen analyst Jaret Seiberg. “The price of mortgages will respond to each development related to privatization.”

The discussions follow previous meetings with other financial leaders, including Goldman Sachs CEO David Solomon. Trump’s ongoing efforts to privatize Fannie Mae and Freddie Mac reflect a significant pivot in U.S. housing finance policy.