July 31 (Reuters) - President Donald Trump is meeting
with chiefs of major U.S. banks to discuss monetizing mortgage
giants Fannie Mae and Freddie Mac, Bloomberg News reported on
Thursday, citing people familiar with the matter.
The pitches include a major public offering of stock, the
report added.
Fannie Mae and Freddie Mac have been under federal
conservatorship since 2008 following the financial crisis,
during which both entities became insolvent amid the subprime
mortgage meltdown.
Since then, the companies have rebuilt capital reserves,
repaid their treasury loans and returned to consistent
profitability.
Shares of both firms, currently traded on over-the-counter
markets, have surged amid speculation over privatization plans.
Trump first signaled intentions to take the companies public
in May, posting on Truth Social that he was giving "very serious
consideration" to the move.
Trump met with JPMorgan ( JPM ) CEO Jamie Dimon last week at
the White House and is meeting Goldman Sachs ( GS ) CEO David
Solomon on Thursday, the report said.
Bank of America ( BAC ) CEO Brian Moynihan is also expected
to meet with Trump in the coming days, the report added, with
talks likely to include other banking executives as well.
Trump is asking the CEOs to provide ideas on strategies for
taking the organizations public and exploring how their banks
might participate in the process, the report said.
Representatives for BofA and Goldman declined to comment,
while the White House did not immediately respond to a Reuters
request for comment.