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Trump Fannie-Freddie Plan Urges Ending Decade of U.S. Rule

  • Major hurdles remain as Treasury leaves key issues unresolved
  • Plan’s implementation in doubt if Trump isn’t re-elected
Fannie Mae Headquarters After Shares Rose 5.5 Percent In October
Photographer: Andrew Harrer/Bloomberg
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The Trump administration laid out its vision for releasing Fannie Mae and Freddie Mac from more than a decade of federal control, issuing a long-awaited plan that marks the government’s boldest step yet toward closing one of the final chapters of the 2008 financial crisis.

The proposal released Thursday by the Treasury Department suggests dozens of reforms to protect Fannie and Freddie from another housing crash, shrinking their dominant market shares and creating new competitors to the companies that backstop about $5 trillion of home loans. Yet, it is only an initial step in what still would be a long and arduous road to freeing the companies from the government’s grip.