Fairholme Capital Management LLC, the mutual-fund company run by Bruce Berkowitz, sold $51 million in the common shares of mortgage financiers Fannie Mae and Freddie Mac to activist investor Carl Icahn, according to a court filing.
Bruce Berkowitz, the money manager battling the U.S. government over the future of Fannie Mae and Freddie Mac, cut his stakes in the common stock of both U.S.- owned mortgage finance companies in the first quarter.
BlackRock Inc.’s Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac.
Members of the U.S. Senate Banking Committee said they’d keep working to overhaul the housing- finance system after casting a narrow vote to advance a bill that would wind down Fannie Mae and Freddie Mac.
The U.S. regulator overseeing Fannie Mae and Freddie Mac revealed plans to ensure the two mortgage- finance companies maintain support for the fragile housing market, reversing efforts to shrink their role.