In a significant financial revelation, billionaire hedge fund manager Bill Ackman has proposed a massive $300 billion plan concerning the future of US mortgage giants Fannie Mae and Freddie Mac. The founder and CEO of Pershing Square Capital Management detailed this strategy on Wednesday, 19 November 2025, outlining a pathway for American taxpayers to benefit from the potential public listing of these government-sponsored enterprises (GSEs).
The Core of Ackman's Three-Step Strategy
Ackman's presentation strongly recommended that the current moment is not opportune for the US Treasury to sell a portion of its shares in Fannie Mae and Freddie Mac via an initial public offering (IPO). The Trump administration, led by President Donald Trump, has expressed its intention to list these entities on benchmark stock indices. However, the Pershing Square plan advocates for a more measured approach.
The report suggests that the US Federal Housing Finance Agency (FHFA) and the Treasury Department can collaborate on a three-step process to achieve the administration's objectives. A key advantage highlighted is that maintaining the GSEs in their current conservatorship removes timing pressure, maximizes flexibility, and allows regulators to plan a careful exit that avoids disrupting the crucial mortgage markets.
Why a "Slow and Steady" Approach is Needed
In an interview with Fox Business, Bill Ackman expressed his alignment with the President's ambitions but emphasized a gradual execution. "I totally agree with the President's ambitions here, as this achieves his objectives in a slow and steady approach, which I think is very consistent with what the Treasury Secretary would like to see as well," Ackman stated.
The first step of his plan involves the federal government acknowledging the significant financial losses suffered by shareholders of these companies. "These companies have lost a lot of money for shareholders, so before you (government) do the biggest IPO of all time, you want the shareholders to be excited about what's going on; otherwise, an IPO will be unsuccessful," he explained during the interview. Generating investor excitement is deemed critical for a successful public offering.
The Detailed Three-Step Process for Relisting
Pershing Square Capital's report lays out a clear, sequential process for the government to follow:
- Acknowledge past shareholder losses and make the proposition attractive for them to ensure a successful IPO.
- Formally account for the repayment of the Senior Preferred Stock of both Fannie Mae and Freddie Mac.
- Exercise the Treasury’s 79.9% share warrants in both entities, solidifying the government's ownership stake before the final step.
- Ultimately, relist the stocks of Fannie Mae and Freddie Mac on the New York Stock Exchange (NYSE), bringing them back to public markets.
This structured exit strategy is designed to unlock immense value, estimated in the plan to be around $300 billion, for American taxpayers who have supported these institutions. The focus remains on a methodical transition that stabilizes the housing finance sector while creating a profitable outcome.
