Hedge fund chief Bill Ackman held meetings with senior Trump administration officials this month to press for the retirement of the federal government’s senior preferred shares in Fannie Mae and Freddie Mac, according to the reporting cited by financial press.
Pershing Square Capital Management’s CEO presented his recommendation in discussions with a set of key policymakers, including National Economic Council Director Kevin Hassett, White House Deputy Chief of Staff James Blair, Federal Housing Finance Agency Director Bill Pulte, and Treasury Under Secretary for Domestic Finance Jonathan McKernan.
The proposal that Ackman pushed centers on retiring the government-held senior preferred shares. Those shares provide the federal government with a combined $370 billion claim on Fannie Mae and Freddie Mac. Ackman has been advocating this course of action publicly over recent months.
The meetings are one element of a larger campaign by investors who have a direct stake in any decision regarding the two government-controlled mortgage-finance companies. Investors involved in the effort are seeking to persuade President Donald Trump to take action that would enable returns on their holdings.
Both Fannie Mae and Freddie Mac remain in government control under conservatorship. The reporting indicates that any move to free the firms from that status - and to retire the government’s preferred shares - is not imminent and appears to be some time away.
Contextual notes
The meetings involved senior White House and Treasury officials and the head of the regulator overseeing housing finance. Ackman has been publicly campaigning for the retirement of the senior preferred shares, which the government holds and which together amount to a $370 billion claim on the two companies.
At present, the companies remain under government control and the timeline for any change to that status was described in the reporting as not near-term.