The Steady Drip: Bill Ackman Calls for Merging Fannie Mae, Freddie Mac Amid Trump’s IPO Push (Connecting the Dots: Fannie Mae, Freddie Mac, Letitia James, Bill Ackman, His Wife Karen Ackman, The Human Rights Watch & Soros Funding, All Networking)

Bill Ackman Calls for Merging Fannie Mae, Freddie Mac Amid Trump’s IPO Push (Connecting the Dots: Fannie Mae, Freddie Mac, Letitia James, Bill Ackman, His Wife Karen Ackman, The Human Rights Watch & Soros Funding, All Networking)

The president had suggested taking the two companies public back in May.

The Epoch Times

Naveen Athrappully

8/12/2025|Updated: 8/12/2025

Bill Ackman, founder and CEO of Pershing Square Capital Management, attends the Milken Conference 2025 in Beverly Hills, Calif., on May 6, 2025. REUTERS/Mike Blake

https://www.theepochtimes.com/business/bill-ackman-calls-for-merging-fannie-mae-freddie-mac-amid-trumps-ipo-push-5900311?ea_src=frontpage&ea_med=section-1

Merging mortgage giants Fannie Mae and Freddie Mac could turn out to be highly beneficial in terms of lower mortgage rates for Americans while lowering costs for the federal government, hedge fund manager Bill Ackman said in an Aug. 10 X post.

“A merger would enable them to achieve huge synergies both in their operations and in the trading price and spreads of their MBS, savings which could be passed along to consumers in the form of reduced mortgage rates,” Ackman said. MBS refers to mortgage-backed securities, which are investments in home loans and other real estate debt.

“A merger would also reduce the cost and risks of government oversight as there would be only one institution that would require FHFA oversight,” he added, referring to the Federal Housing Finance Agency, which currently regulates Freddie Mac and Fannie Mae.

Ackman’s comments follow confirmation from a senior Trump administration official on Aug. 8 that the government is seeking to take the two companies public later this year, launching an initial public offering of shares in both Freddie Mac and Fannie Mae.

In May, President Donald Trump announced he would discuss the matter of taking the entities public with FHFA director William J. Pulte, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick before deciding on the issue.

In an Aug. 10 post on Truth Social, Trump posted a picture of himself at the New York Stock Exchange, with the words “The Great American Mortgage Corporation” listed on the side. On the same day, Pulte made an X post using the same words.

Freddie Mae and Fannie Mae are entities that buy mortgages from lenders, either holding them in their portfolio or selling them as mortgage-backed securities.

By engaging in such activity, the entities provide liquidity and stability to the U.S. housing market. While Fannie Mae purchases mortgages from major commercial banking institutions, Freddie Mac buys from Savings and Loan Associations.

As to market risks posed by creating a monopoly formed by the merger, Ackman said in another Aug. 10 X post that more competition actually increases risk when it comes to institutions like Freddie Mac and Fannie Mae, which are “systemically important.”

“These are monoline insurers of first mortgages made to creditworthy middle class borrowers. Innovation in this space is what caused the financial crisis,” he wrote, referring to the 2008 financial crisis.

Government Oversight

Before the 2008 financial crisis, Freddie Mac and Fannie Mae were private companies backed by the Department of the Treasury. Declining home prices and increasing mortgage delinquencies put the companies at risk of collapse.

The entities were put under government conservatorship in 2008 to prevent them from going bankrupt.

Democrats have pushed back against proposals to take Freddie Mac or Fannie Mae public, writing a letter to Pulte on June 5, raising their concerns.

Currently, homeownership is difficult for many Americans due to high mortgage rates and home prices, they wrote.

But even in this tough environment, government-backed mortgage financing through Freddie Mac and Fannie Mae “remains one of the lowest cost sources of lending for homeowners and multifamily housing developers alike by providing liquidity to the mortgage market,” the lawmakers said.

Taking the companies public could result in these entities prioritizing investor profits over homes for Americans, they said.

“Should President Trump make good on his plans, he may take us back to the status quo before the 2008 foreclosure crisis, when the Enterprises’ investors enjoyed the full profits that come with privatization while knowing taxpayers would be on the hook for any future failures,” they wrote.

In a May 28 Truth Social post, Trump said that even if the federal government relinquishes control of the entities by taking them public, it will still maintain oversight of the companies.

“I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President,” he wrote.

Connecting the Dots:

Letitia James is the Attorney General of New York, the chair for the Committee on Economic Development and obtaining her Juris Doctor degree at Howard University.

Earl G. Graves is a trustee at Howard University and a trustee at the Committee for Economic Development.

Foundation to Promote Open Society was a funder for the Committee for Economic Development.

George Soros was the chairman for the Foundation to Promote Open Society.

Thomas P. Gerrity is a trustee at the Committee for Economic Development and was a director at Fannie Mae.

Kenneth M. Duberstein was a VP for the Committee for Economic Development and a director at Fannie Mae.

James A. Johnson is a trustee at the Committee for Economic Development, received five real-estate loans from the Countrywide Financial Corporation and was the chairman for Fannie Mae.

Franklin D. Raines was a mortgage recipient from the Countrywide Financial Corporation and the CEO for Fannie Mae.

Homeownership Alliance is a trade groups organization, an advocacy group for Fannie Mae and an advocacy group for Freddie Mac.

Richard H. Davis was the president of the Homeownership Alliance and is a trustee at the Committee for Economic Development.

Donna S. Morea was a trustee at the Committee for Economic Development and the EVP for the CGI Group Inc.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Obamacare is Barack Obama’s signature policy initiative.

Foundation to Promote Open Society was a funder for the Committee for Economic Development and Urban Institute (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Bill & Melinda Gates Foundation was a funder for the Committee for Economic Development and the Urban Institute (think tank).

Urban Institute (think tank) is a contractor for Obamacare.

Warren E. Buffett is a trustee & major donor for the Bill & Melinda Gates Foundation and a life trustee at the Urban Institute (think tank).

Anthony A. Williams is a trustee at the Urban Institute (think tank) and a director at Freddie Mac.

Jamie S. Gorelick is the chairman for the Urban Institute (think tank), a partner at Wilmer Cutler Pickering Hale and Dorr, Ivanka Trump & Jared Kushner’s attorney, was a deputy attorney general for the U.S. Department of Justice, the vice chair for Fannie Mae and a trustee at the Carnegie Endowment for International Peace (think tank).

James F. Collins is a senior associate at the Carnegie Endowment for International Peace (think tank) and was a U.S. ambassador for Russia.

Open Society Foundations was a funder for the Carnegie Endowment for International Peace (think tank).

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank) and the Brookings Institution (think tank).

Cameron F. Kerry is a fellow at the Brookings Institution (think tank) John F. Kerry’s brother, a senior counsel at Sidley Austin LLP and was an associate at Wilmer Cutler Pickering Hale and Dorr.

Barack Obama was an intern at Sidley Austin LLP and Obamacare is his signature policy initiative.

Judge Randolph D. Moss was in private practice at the Washington office of Wilmer, Cutler, Pickering, Hale & Dorr, LLP, is a district judge of the U.S. District Court for the District of Columbia and ruled that President Donald Trump's plan to crack down on asylum claims overstepped his authority.

Judge Theodore D. Chuang served as counsel at the law firm of Wilmer, Cutler, Pickering, Hale and Dorr LLP and In March 2025, Chuang ruled that President Donald Trump and Elon Musk's dismantling of the United States Agency for International Development (USAID).

Robert S. Mueller III was a partner at Wilmer Cutler Pickering Hale and Dorr, a director at the Federal Bureau of Investigation (FBI), investigating interference with Russia in the 2016 U.S. election, special counsel investigating Russian ties in the 2016 Donald Trump presidential campaign, a special counsel at the U.S. Department of Justice, James Quarles III assisted him in the Russia probe, Jeannie Rhee assisted him in the Russia collusion probe and Aaron Zebley assisted him in the Russia probe.

James Quarles III was a partner at Wilmer Cutler Pickering Hale and Dorr and assisted Robert S. Mueller III in the Russia probe.

Jeannie Rhee is a partner at Wilmer Cutler Pickering Hale and Dorr, assisted Robert S. Mueller III in the Russia collusion probe and was a deputy assistant attorney general at the U.S. Department of Justice.

Aaron Zebley was a partner at Wilmer Cutler Pickering Hale and Dorr and assisted Robert S. Mueller III in the Russia probe.

Jared Kushner’s law firm is Wilmer Cutler Pickering Hale and Dorr, Jamie S. Gorelick is his attorney, is the senior adviser to the president for the Donald Trump administration and Donald Trump’s son-in-law.

Jamie S. Gorelick is a partner at Wilmer Cutler Pickering Hale and Dorr, Ivanka Trump & Jared Kushner’s attorney, the chairman for the Urban Institute (think tank), was a deputy attorney general for the U.S. Department of Justice, the vice chair for Fannie Mae and a trustee at the Carnegie Endowment for International Peace (think tank).

Urban Institute (think tank) is a contractor for Obamacare.

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank) and the Urban Institute (think tank).

George Soros was the chairman for the Foundation to Promote Open Society and is the founder & chairman for the Open Society Foundations.

Open Society Foundations was a funder for the Carnegie Endowment for International Peace (think tank) and the Bill, Hillary & Chelsea Clinton Foundation.

Booz Allen Hamilton was a funder for the Bill, Hillary & Chelsea Clinton Foundation and is a contractor for Obamacare.

Chelsea V. Clinton is the vice chair for the Bill, Hillary & Chelsea Clinton Foundation and was an employee at McKinsey & Company.

McKinsey & Company is an Obamacare contractor.

McKinsey Global Institute is an economics research group for McKinsey & Company.

Leonard T. Mendonca is a director at McKinsey & Company, the chairman for the McKinsey Global Institute and a co-chairman for the Committee for Economic Development.

Donna S. Morea was a trustee at the Committee for Economic Development and the EVP for the CGI Group Inc.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Obamacare is Barack Obama’s signature policy.

Foundation to Promote Open Society was a funder for the Committee for Economic Development.

George Soros was the chairman for the Foundation to Promote Open Society.

Letitia James is the chair for the Committee on Economic Development, the Attorney General of New York and obtaining her Juris Doctor degree at Howard University.

Earl G. Graves is a trustee at Howard University and a trustee at the Committee for Economic Development.

Thomas P. Gerrity is a trustee at the Committee for Economic Development and was a director at Fannie Mae.

Kenneth M. Duberstein was a VP for the Committee for Economic Development and a director at Fannie Mae.

James A. Johnson is a trustee at the Committee for Economic Development, received five real-estate loans from the Countrywide Financial Corporation and was the chairman for Fannie Mae.

Franklin D. Raines was a mortgage recipient from the Countrywide Financial Corporation and the CEO for Fannie Mae.

Homeownership Alliance is a trade groups organization, an advocacy group for Fannie Mae and an advocacy group for Freddie Mac.

Richard H. Davis was the president of the Homeownership Alliance and is a trustee at the Committee for Economic Development.

Donna S. Morea was a trustee at the Committee for Economic Development and the EVP for the CGI Group Inc.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Obamacare is Barack Obama’s signature policy initiative.

Booz Allen Hamilton is a contractor for Obamacare, and was a funder for the Bill, Hillary & Chelsea Clinton Foundation.

Open Society Foundations was a funder for the Bill, Hillary & Chelsea Clinton Foundation.

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

Cyrus F. Freidheim Jr. is an honorary trustee at the Brookings Institution (think tank), a member of the Commercial Club of Chicago and was a managing director at Booz Allen Hamilton.