Bill Ackman pressed on CNBC Thursday for Fannie Mae and Freddie Mac to be released from conservatorship, arguing that a Democrat-controlled government could use the companies as a political tool against Republicans. He underscored the timeline, calling it "absolutely politically critical for Fannie and Freddie to be released from conservatorship before the end of the Trump Administration."
Traders did not wait around. Shares of both mortgage giants spiked after the interview, rising up to 22% and 25% during New York trading. Ackman noted Pershing Square has owned the stocks for years and that those positions have hurt the firm's performance materially, even as he remains "very bullish" on the names.
The setup is tense: the stocks are down around 60% this year as investors grow impatient for an exit from government control. Adding to the calendar risk, Treasury Secretary Scott Bessent said this week the administration's top focus is protecting mortgage rates, and he indicated the government might not take up the companies' ownership structure until 2027 or 2028.
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In plain English, the trade rides on policy timing. Ackman wants a near term release from conservatorship while the Treasury secretary suggested it may not be addressed until 2027 or 2028, a gap that helps explain both the long slide and the headline-driven pops. The bottom line: for these stocks, Washington's schedule may matter more than quarterly results.
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