Fannie-Freddie Fall as Trump Plan Shows Quick Windfall Unlikely

Treasury officials acknowledged their recommendations could take years to implement.

(Bloomberg)—The Trump Administration’s plan to release Fannie Mae and Freddie Mac from their government shackles laid out a vision that could eventually lead to hedge fund managers minting riches on their investments in the mortgage giants.

But the Treasury Department’s proposal left much to be ironed out, signaling there might not be a windfall unless President Donald Trump wins re-election in 2020. That sentiment was palpable on Wall Street Friday with Fannie and Freddie suffering their biggest one-day drops since January.

Treasury officials themselves acknowledged that their recommendations could take years to implement — a timetable that would extend beyond Trump’s first term. And the report, released late Thursday, left it to a politically divided Congress to handle some of the most sweeping changes.

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