Fairholme proposes to buy insurance businesses of Fannie, Freddie

November 13, Fairholme Capital Management has proposedto buy the insurance businesses of Fannie Mae andFreddie Mac, a move that seeks to resolve theuncertain future of the mortgage financiers by freeing them fromU.S. government control. Bruce Berkowitz’s Fairholme said it wants to buy themortgage-backed securities insurance businesses of Fannie andFreddie by bringing in $52 billion in new capital.