For more than a decade, housing-finance giants Fannie Mae and Freddie Mac have remained in conservatorship after being bailed out amid the Great Recession. With former Vice President Joe Biden’s projected win in the U.S. presidential election, that may continue for the foreseeable future.
Fannie and Freddie’s shareholders have been kept in all these years — they’ve watched as the enterprises’ profits were swept to the Treasury Department to repay the federal government, and they’ve gone without a dividend in that time.
Glimmers of hope have emerged for Fannie and Freddie’s investors during the Trump administration. Last April, Vice President Mike Pence’s former chief economist, Mark Calabria, was confirmed as the director of the Federal Housing Finance Agency, the main regulator overseeing Fannie Mae and Freddie Mac. Since assuming that post, Calabria has worked to begin recapitalizing the two enterprises after ending the years of profit sweeps.