Bill Ackman Thinks The Fannie Mae (FNM)-Freddie Mac (FRE) Bailout Will Have To Be Redone

Pershing Square's Bill Ackman told the Value Investing Congress that he doesn't like the Fannie Man (NYSE: FNM), Freddie Mac (NYSE: FRE) bailout. He thinks the Fannie and Freddie bailout will have to be redone.

Ackman did say the AIG (NYSE: AIG) move was the most rational thing the government has done in this process. However, Bill Ackman did note that he thinks the government taking 80% is a little over-reaching. He said the strong do what they will, the weak do what they must. For example, when Borders Group (NYSE: BGP) was in need of raising money in two weeks, Pershing Square funded them (Pershing was a previous large investor in Borders), but he would never even consider taking 80% warrants.

Ackman did say if AIG is able to pay back the government sooner than expected, the government could perhaps reduce its stake to the benefit of AIG shareholders. You can learn more about what Ackman is referring to by checking out the StreetInsider Value Investing Congress Entity.

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