This particular investing tango has hit the slow music stage.

Fairholme's Bruce Berkowitz has upped the ante in his financial dance with the GSEs Fannie Mae and Freddie Mac, reports Reuters, Bloomberg, and the Wall Street Journal, among other publications.

The news outlets report that Berkowitz wants to buy the GSEs' mortgage-backed securities insurance businesses by generating $52 billion in new capital. In particular, the would raise about $34.6 billion in exchange for preferred stock, and another $17.3 billion from preferred stockholders in a rights offering, according to the publications.

Berkowitz previously turned heads when he took big holdings via his mutual funds in both GSEs as well as jumped into the legal and political fights over both the status of both GSEs.  

Edited by: Tommy Fernandez


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