Bill Ackman Calls for Merging Fannie Mae, Freddie Mac Amid Trump’s IPO Push

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....