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Another Iceberg on the Path to Privatization
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Moody’s Analytics corrected this brief on January 29, 2025, to add a footnote on page 2. The footnote specifies that the shareholders referred to in the brief are holders of mortgage-backed securities, not holders of equity shares.
In this brief, the authors discuss the challenge the Trump administration will face in defining the government’s support of Fannie Mae and Freddie Mac if they are released from conservatorship administratively. The administration will face pressure to deny that the enterprises enjoy the implicit government guarantee they enjoyed before conservatorship, but it is unclear whether the government-sponsored enterprises can adequately support the market without it.
