The common stock prices of Fannie Mae and Freddie Mac each were up over 20% on Monday as Fairholme Capital Management, Miami, called on the government to end the conservatorship and return both companies to private ownership.
Fairholme said it owns $2.4 billion par value of preferred stock in both companies.
It added it was “ready to help with a restructuring that accelerates the return of meaningful investment to the secondary mortgage market.
“Privately owned Fannie Mae and Freddie Mac are critical to our nation’s economic security, lowering the cost and increasing the availability of homeownership.
“There are no substitutes. Today, they are stronger than ever—enabling the U.S. Treasury to rapidly recoup its emergency investment in both companies,” a press release from Fairholme said.
A request for further comment from Fairholme has not yet been returned.
At one point last week, Fannie Mae’s common stock price
The Mortgage Bankers Association put out its
