Citigroup Inc. Chief Executive Officer Jane Fraser met with President Donald Trump on Wednesday to pitch public inventory offerings for mortgage giants Fannie Mae and Freddie Mac.
Fraser met with Trump to debate the financial institution’s attainable involvement in monetizing the Federal National Mortgage Association and Federal Home Loan Mortgage Corp., the companies which were below authorities conservatorship for the reason that 2008 monetary disaster, in line with an individual conversant in the matter.
READ MORE: GSEs might exit conservatorship quick, consultants say
She and different Wall Street executives have been making proposals to the president on the potential offers, which might probably be among the many largest public offerings in historical past and ship bumper charges 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 take action, Bloomberg reported final week.
Fannie and Freddie are a few of the largest government-run remnants of the monetary disaster and stay below US management regardless of persistent debates about whether or not to monetize them. Critics of the plans say that making them public would probably elevate mortgage prices for Americans.
READ MORE: Trump modifications tone on debanking, lays extra blame on banks
In May, Trump stated he was giving “very severe consideration” to bringing extra of the companies’ shares onto the market. Small parts already commerce publicly, however a overwhelming majority of the inventory is held by the federal government.
Bank of America CEO Brian Moynihan was additionally seen on the White House on Wednesday, CNBC reported.
