Pershing Square Buys Stake in Fannie, Freddie

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Nov. 15 (Bloomberg) -- Bill Ackman’s hedge fund-firm took stakes in Fannie Mae and Freddie Mac, the government-backed mortgage insurers that investor Bruce Berkowitz is seeking to restructure, and said it may seek talks with management, shareholders and the government. Julie Hyman reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

You this breaking news that bill ackman bought a stake in fannie mae and freddie mac.

I was following the 13f filing and this is actually a 13d filing.

The headlines came fast and furious.

Bill ackman's firm has taken a stake in freddie mac -- freddie mac.

He took a 9.98% stake in fannie mae.

He would seek talks with the government with the companies management, etc.

That may include some sort of asset sale.

Shares of both of these companies have been rising in the premarket session.

There have been a lot of questions about the future of these two companies.

The government says it wants to wind them down.

Unclear what role he would have in this whole process.

He cited the fair home transaction?

In light of the fair home transaction he was making these investments.

What he is referring to is fair home capital.

Earlier in the week they propose to buy segments of freddie mac and fannie mae.

As the future of those holdings have been uncertain, this is his way of getting some return on his investments.

Most industry analysts say government will not approve of the fair home proposal.

Still a lot of questions surrounding what will happen next.

Thank you, julie hyman.

We're a few minutes away from the opening bell.

This text has been automatically generated. It may not be 100% accurate.

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