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Here’s how Trump could turn Fannie Mae and Freddie Mac into cash cows delivering billions to taxpayers - MarketWatch

1. Trump considers reforms for Fannie Mae and Freddie Mac. 2. Potential public offerings could monetize these profitable companies for taxpayers. 3. Fannie Mae earned $17 billion in 2024, indicating strong financial health. 4. Government may retain control, contrasting traditional Republican views on privatization. 5. Existing liquidation preference of $341 billion complicates potential privatization efforts.

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FAQ

Why Bullish?

Recent comments from Trump suggest a positive shift toward privatization; strong earnings bolster confidence in FNMA.

How important is it?

The article discusses pivotal reforms that could influence FNMA's future valuation significantly.

Why Long Term?

The potential ongoing business structure and earnings could stabilize FNMA's market position over years.

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