Hedge funds get $12bn early Christmas present

Hedge Fund

Hedgies invested in Fannie Mae and Freddie Mac unwrapped an early $12bn Christmas present from President-elect Donald Trump on Wednesday.

The New York Post reports that’s how much value was added to the mortgage giants’ shares after Trump’s Treasury secretary designee, Steven Mnuchin, said one of his priorities was to “get Fannie and Freddie out of government ownership.”

“It makes no sense that these are owned by the government and have been controlled by the government for as long as they have,” the 53-year-old former Goldman Sachs partner told Fox Business Network.

Investors took Mnuchin’s comments to mean the Treasury Department would stop collecting the profits of the two companies — as it has since taxpayers came through with a $187.5bn bailout in 2008.

To access the complete New York Post article hit the link below:

Trump’s treasury pick gives hedgies $12B reasons to smile

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