Hedge Fund Fights To Keep Fannie, Freddie In Business

Apr 29 2014 | 4:07pm ET

Hedge fund Fairholme Capital Management is ramping up its effort to save Fannie Mae and Freddie Mac from dissolution, even as the White House pushes its case for that conclusion.

A group called United for American Homeownership today began a media blitz advocating for “preserving and strengthening” the two government-backed mortgage giants. Fairholme, which owns stakes in both Fannie and Freddie, is financing the group.

UAH kicked off the campaign with television advertisements on Sunday, and today formally launched its website and ran full-page ads in The New York Times and The Wall Street Journal.

“Fannie and Freddie need to be fixed, not thrown away,” Fairholme said. “We support reform and are ready to invest in it.”

The blitz comes as the White House intensifies its push to win passage of a bipartisan bill that would phase out Fannie and Freddie, which required billions in government bailout funds during the financial crisis. Treasury Secretary Jacob Lew called Fannie and Freddie “one of the last pieces of unfinished business” from the crisis that ought to be dealt with “now.”

The Senate Banking Committee today began hearings on a bill that would replace Fannie and Freddie with a system of privately-backed mortgage insurers.

Fairholme last year proposed buying the two companies’ mortgage security insurance businesses, but the approach was rejected by the White House.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.