Fannie Mae, Freddie Mac plunge as Democrats capture Congress
FMCC•Over-the-counter shares of Fannie Mae and Freddie Mac fell more than 20% after Democrats captured both chambers of Congress. Analysts said the victory could weigh on the prospect of the mortgage companies being released from conservatorship under the Trump administration.
1. Shares fall after election
Over-the-counter shares of Fannie Mae and Freddie Mac plunged more than 20% after Democrats captured the Senate and House of Representatives. Analysts said the result was likely to bring legislative gridlock and heightened scrutiny of the executive branch, potentially weighing on the companies’ prospects of being released from conservatorship under the Trump administration.
2. Ackman’s timeline
Billionaire Bill Ackman said this week that Fannie Mae and Freddie Mac needed to be resolved in 2027 or 2028 before Trump leaves office. His Pershing Square owns a little over 10% of both companies. Their shares were each down more than 60% year to date.
