Investor Proposal Sparks Surge in Fannie Mae Shares

Fannie Mae shares experienced a significant rally yesterday, climbing more than 7% to reach $10.01. This substantial gain followed the release of a comprehensive privatization strategy from billionaire investor Bill Ackman, whose hedge fund Pershing Square holds the largest stake in the mortgage giant.

The government-sponsored enterprise has operated under federal conservatorship since the 2008 financial crisis, a temporary measure that has persisted for 17 years. During this period, the company received billions in bailout funds, with the government receiving preferred shares and warrants in return.

Ackman, who has positioned himself with over 210 million combined shares in both Fannie Mae and Freddie Mac, has made a substantial bet on the conclusion Read more...