Bruce Berkowitz of Fairholme Takes a $500 Million Stake in Fannie Mae and Freddie Mac
Berkowitz has already looked very prescient with his huge investment in AIG (AIG) which is also a company that was destroyed in the 2008 financial crisis.
Berkowitz wrote the following to CNBC with respect to his newly revealed positions:
"Taxpayer dollars expended by the government during a time of national crisis will be fully repaid, and equitable treatment of taxpaying shareholders, including community banks and insurance companies, must be restored.
"The government's ability to fully recoup its investment and restoring value to shareholders are not mutually exclusive. This is the American way.
"The time to restructure Fannie and Freddie is upon us, sustaining our nation's economic recovery requires it. On behalf of the hundreds of thousands of Fairholme shareholders who helped to rebuild American International Group,Bank of America, CIT Group, General Growth Properties, MBIA Inc., and others after the Great Recession – we stand ready to do our part."