Fannie Mae and Freddie Mac FNMA / FMCC
The three reasons
- 1
Treasury's warrants and residual stake could generate ~$300bn for taxpayers over time
- 2
Senior Preferred already repaid: Treasury has earned 11.6% IRR, $25bn above contractual 10%
- 3
Ending conservatorship needs no Congress — only Treasury and FHFA approval
Primary demands
- Release Fannie Mae and Freddie Mac from conservatorship within two years (Fannie IPO YE2026, Freddie IPO YE2027)
- Set post-conservatorship minimum capital requirement at 2.5% rather than the current 4% FHFA rule
- Deem Treasury's Senior Preferred Stock already repaid (11.6% IRR earned) rather than convert to common
- Exercise Treasury's 79.9% warrants and monetize over time (~$300bn estimated value)
- Limit government-granted benefits (SEC exemption, UST line of credit, Volcker exemption) and clarify ongoing backstop
- Execute re-IPO at NYSE listings; leave junior preferred outstanding or convert to common on negotiated basis
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (11)
Notes
Not a typical activist campaign — this is a public-policy advocacy deck aimed at the incoming Trump/Bessent Treasury rather than a corporate board. Framing is built around Trump ('The Art of the Deal' title; closing Trump quote on p.103; Trump's 2021 letter on p.46 endorsing privatization). Pershing has argued this thesis since ~2014; this is a major follow-up catalyzed by Trump's election. Strong SCQA structure: Situation = GSEs in indefinite conservatorship; Complication = Treasury already repaid but stuck; Question = how to exit; Answer = 4-step framework + IPO plan. Uses Greenspan (p.33) and Buffett (p.34) as authority quotes against the old FIA business model rather than against current management. GGP case study (p.91) is Ackman's own successful precedent. Pershing owns common stock — disclosed in the disclaimer. Junior preferred handling described as negotiable (convert to common at IPO price assumed for modeling).