Citigroup Inc. Chief Executive Officer Jane Fraser met with President Donald Trump on Wednesday to pitch public stock offerings for mortgage giants Fannie Mae and Freddie Mac.
Fraser met with Trump to discuss the bank’s possible involvement in monetizing the Federal National Mortgage Association and Federal Home Loan Mortgage Corp., the firms that have been under government conservatorship since the 2008 financial crisis, according to a person familiar with the matter.
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She and other Wall Street executives have been making proposals to the president on the potential deals, which would likely be among the largest public offerings in history and deliver bumper fees to banks that underwrite them. Leaders of Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. have pitched the president, or plan to do so, Bloomberg
Fannie and Freddie are some of the largest government-run remnants of the financial crisis and remain under US control despite persistent debates about whether to monetize them. Critics of the plans say that making them public would likely raise mortgage costs for Americans.
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In May, Trump said he was giving “very serious consideration” to bringing more of the firms’ shares onto the market. Small portions already trade publicly, but a vast majority of the stock is held by the government.
Bank of America CEO Brian Moynihan was also seen at the White House on Wednesday, CNBC reported.