Trump pledges government will continue Fannie Mae, Freddie Mac guarantees

Between the lines: Before being taken into conservatorship in 2008, Fannie and Freddie had what was known as an "implicit guarantee" — the market's assumption that if something went wrong, the government would step in to save them.

• That's what ultimately happened in 2008.

Catch up quick: Last week, Trump floated the idea of returning the companies to public control, almost 17 years after they were rescued during the financial crisis. On Tuesday, he went a step further.

What they're saying: "I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President," Trump wrote on Truth Social Tuesday evening.

• He again referred to taking the companies public, though they're already publicly traded, albeit with the government holding most of the shares.

What to watch: Trump's post may answer the existential question of a guarantee, but not the mechanics of how it would operate.

• The Senior Preferred Stock Purchase Agreements that serve as the vehicle for Treasury's support to the mortgage agencies are complicated and contentious arrangements.
• Unwinding them will require, as NYU's Furman Center wrote last month, "significant and controversial decisions."