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


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

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Comments (5)
  • Palenque
    , contributor
    Comments (395) | Send Message
     
    If you need 500B to capitalize the new experiment , please do not count on me. ha ha ha ... I only have a few grands...and besides I don't like the idea ha ha

     

    Don't kill homeownership! Save Fannie Mae.
    5 May 2014, 04:43 PM Reply Like
  • irish boy
    , contributor
    Comments (6) | Send Message
     
    This whole saga is a joke. Allow freddie and fannie to recapitalise themselves and hold cash reserves. Proper regulation under a financial regulator. Problem solved. The same thing happened in Ireland with the banks and now the problem is starting to correct itself. The housing market can progress with confidence
    5 May 2014, 05:10 PM Reply Like
  • nautor42
    , contributor
    Comments (194) | Send Message
     
    Sometime's I think the Government wants the economy to go down the toilet. For what purpose, who knows.
    5 May 2014, 05:41 PM Reply Like
  • tina1234
    , contributor
    Comment (1) | Send Message
     
    Does anyone have an idea when the FNMA question would get resolved?
    5 May 2014, 08:46 PM Reply Like
  • mag1205
    , contributor
    Comments (2521) | Send Message
     
    Discovery is ongoing in the background. It will take atleast early next year before you see FNMA ramping up. Patience & more patience my friend.
    6 May 2014, 10:59 AM Reply Like
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