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Fairholme proposes $52B recap for GSEs: WSJ

  • 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
Comments (7)
  • Joe Eifrid
    , contributor
    Comments (342) | Send Message
     
    Pssst....The outline...
    http://on.ft.com/1aFsjoQ
    13 Nov 2013, 09:10 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2674) | Send Message
     
    Congress won't do it, no need to sell the golden goose they've gotten. Theyre dumb, but not that dumb.
    13 Nov 2013, 09:17 PM Reply Like
  • Walter P. Chrysler
    , contributor
    Comments (300) | Send Message
     
    you never know. those banks are worth in the trillions however. oh, and "thanks for that btw." http://bit.ly/18tNQBk
    13 Nov 2013, 09:26 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9171) | Send Message
     
    The plan actually looks brilliant but:

     

    1. In a mid-term election year there is no way on God's Green Earth that a vulnerable congressperson would allow themselves to give their opponent the opportunity to make an ad saying that the incumbent "is in bed with Wall Street".

     

    2. As was mentioned above, elections aside, you are going to have to pry the golden geese that are Freddie and Fannie from congress' cold, dead hands.

     

    This is a complete "no go" plan.
    13 Nov 2013, 10:49 PM Reply Like
  • Maciej Kedzierski
    , contributor
    Comments (26) | Send Message
     
    Wouldn't this be like putting the wolf in charge of hen house security?
    13 Nov 2013, 11:36 PM Reply Like
  • buffett222
    , contributor
    Comments (1022) | Send Message
     
    Back to the lawsuit then.
    13 Nov 2013, 11:36 PM Reply Like
  • Joe Eifrid
    , contributor
    Comments (342) | Send Message
     
    Interesting read from Fairholme Capital
    http://bit.ly/19mQ3hd
    14 Nov 2013, 08:11 AM Reply Like
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