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Fairholme Capital Management announced that its clients, including mutual fund
shareholders of The Fairholme Fund and The Fairholme
Allocation Fund, own approximately $2.4 billion par value of
Fannie Mae and Freddie Mac Preferred Stock and are 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. Fannie and Freddie currently purchase or insure 6
out of every 10 home mortgages in America. Today, they are stronger than ever
– enabling the United States Treasury to rapidly recoup its temporary
emergency investments in both entities.
Taxpayer dollars expended by the government during a time of national crisis
will be fully repaid. And equitable treatment of taxpaying shareholders,
including community banks, insurance companies, and mutual funds holding
Preferred Stock, must be restored with dividends reinstated. Repaying taxpayer
investments, restructuring government guarantees, and restoring shareholder
property are not mutually exclusive. This is the American way.
The time to restructure Fannie and Freddie is upon us. Sustaining our nation's
economic recovery requires it.
On behalf of the hundreds of thousands of Fairholme Funds shareholders who
helped to rebuild American International Group, Bank of America, CIT Group,
General Growth Properties, MBIA Inc., and others after the Great Recession –
we stand ready to do our part.
Investing in the Funds involves risks including loss of principal. The Funds'
investment objectives, risks, charges, and expenses should be considered
carefully before investing. The prospectus contains this and other important
information about the Funds, and it may be obtained by calling Shareholder
Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com.
Read it carefully before investing.
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