Fairholme proposes $52B recap for GSEs: WSJ

|By:, SA News Editor

Fairholme Capital Management offers to spearhead a move by a consortium of investors aimed at "purchasing, recapitalizing, and operating the mortgage-guarantee businesses" of Fannie Mae (FNMA) and Freddie Mac (FMCC) as state-regulated bond insurers, WSJ says.

The offer was reportedly outlined by Bruce Berkowitz in a letter sent Wednesday evening to federal regulators.

Earlier: Hedge funds pitch takeover of Frannie