Should Fannie Mae and Freddie Mac be removed from government control, Steve Mnuchin — President-elect Donald Trump’s pick for Treasury Secretary — could benefit as an investor.
The Goldman Sachs veteran outlined a proposal to privatize the two mortgage behemoths following his nomination, a move that could greatly benefit a hedge fund he invests in that holds interests in Fannie and Freddie. Stocks for the fund — managed by Trump supporter John Paulson — jumped following Mnuchin’s announcement that restoring private ownership to the mortgage firms was a priority for the new administration, the Wall Street Journal reports.
Yesterday, Mnuchin released his financial statements, revealing $1M to $2M worth of investments made to the Paulson fund. He said in a separate financial disclosure that he plans to divest himself from nearly all of his holdings (including those in the hedge fund) should his nomination be confirmed. [WSJ]
