Fairholme Capital Management LLC said yesterday that it would like to buy parts of bailed-out mortgage-finance giants Fannie Mae and Freddie Mac from the government in a recapitalization valued at $52 billion, the Wall Street Journal reported today. The proposal faces very long odds, given recent statements from top Obama administration and regulatory officials. But it could raise the profile of the needed mortgage-market overhaul that has only recently begun to attract attention from Congress. Bruce Berkowitz, Fairholme's chief investment officer, made the offer in a letter sent late Wednesday to the firms' federal regulator. Fairholme, a Miami-based mutual-fund company, sued the U.S. earlier this year over its bailout of Fannie and Freddie. The firm said it would lead a group of investors that has already acquired "preferred" shares of Fannie and Freddie in purchasing, recapitalizing and operating the mortgage-guarantee businesses of the companies as state-regulated bond insurers.
