For hedge funds that have been hoping the Trump administration would deliver a windfall on their investments in Fannie Mae and Freddie Mac, 2019 could be a make-or-break year.
There are reasons for cautious optimism after years of heartbreak.
President Donald Trump will finally get to replace Mel Watt, the Democratic holdover from the Obama administration who has been running Fannie and Freddie’s regulator since 2014. Trump plans to nominate Mark Calabria to lead the Federal Housing Finance Agency. The libertarian economist has criticized the government policy that denies shareholders access to the mortgage giants’ billions in profits.