Ackamn: Who would invest in a new version of GSEs?

|By:, SA News Editor

Finally addressing Congressional plans to wind Fannie (FNMA +2.8%) and Freddie (FMCC +1.8%) down, Ackman isn't buying it. A private-label replacement would need to raise $500B to capitalize itself, he says - not likely given the government's "stealing" of the GSEs dividends. "We don't think there's an investor in the world of any consequence that will invest in a new version of Fannie and Freddie."

Previously: Ackman pitches Fannie and Freddie at Ira Sohn