--bruce berkowitz.his is "bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. ♪ good morning, everyone "bloomberg surveillance." futures are negative 19 and the markets are really on a coordinated move off of the continuing news flow out of ukraine, russia, and crimea. oil is joining the others and a more lengthy response to the geopolitical news. ian bremer will join us in a bit. vows tohinese president crack down on terrorism following an attack at a train station that killed 32 people. 10 terrorists stormed into the station saturday and attacked people with knives. no group is claiming responsibility for this assault. president obama meets with the israeli prime minister. the president urged prime minister netanyahu to make peace with palestinian leaders and he says he will not give in to pressure. the president will become more directly involved in the peace process. "nonstop" knocked out "the lego movie" in the box office. took in $20 million.

with us money manager bruce berkowitz, founder of fair home capital management. welcome to the show. terrific to have you here. tell us what you want fannie mae and freddie mac to do? >> i want them to respect their owners. i mean they have a very tough deal with the government in 2008 and everything, it worked. everything is perfect. then in 2012 your, the basically shareholders assets were taken from them. gerri: but, bruce, why should this money go to you and investors rather than to taxpayers? >> well, i think it should go to both. i'm a shareholder and a taxpayer and i have 170,000 clients, retirees, 401(k)s. we own the company. that is normally what an investor is and fannie mae and freddie mac are no different than coca-cola or disney. so the question is why shouldn't all of their profits go to taxpayers? shareholders are taxpayers. >> absolutely different situation. we bailed out those two companies. >> no. gerri: as taxpayers, we bailed out fannie mae and freddie mac. shouldn't we be the first to reap the rewards? >> well, and, same case with aig, bank o

pershing square's bill ackman and bruce berkowitz took enormous hits yesterday on these double digitage declines. the impact on the preferred shares at least initially to this senate proposal and these are held in large skiz by perry capital and paulson and company as well as others, was far less. the prefer every days were much flatter yesterday. perry and fairhome sued charge that their handling of fannie and freddie are unlawful. they argue the government's backing of the u.s. mortgage system is more essential than ever. whether they will prevail under this new pressure, scott, remains to be seen. there is a lot of doubt as to whether this proposal can get the votes needed. it still remains a i don't know tro ver controversial issue. >>> we do have opinion on both sides. senator warner, consumer advocate ralph nader owns shares in fannie and freddie. we're going to hear from him in a moment. senator, good to have you on the "halftime" show. >> thanks for having me on. >> why not let fannie and freddie recapitalize and recover? >> scott, let's step back for a second. you know, four

. >> wall street, fighting for fannie and freddie, bruce berkowitz, he is betting big. the u.s. for compensation for the value of stock lost after the u.s. took over fannie and freddie in 2008. berkowitz is taking it one step further, demanding the company retained earnings and stop borrowing for the purpose of dividends to the u.s. government. he spoke of the surveillance team this morning. >> in my opinion there is no debate. fannie mae and freddie mac are private companies. they are no different than coca-cola. people talking about the debate around privitize, the last time i looked on the bloomberg screen, i was on the list of shareholders who owned a piece of fannie mae and freddie mac. it does not make sense to me. we own them. i do not see anyone else who owns them. pay back the taxpayers, time to move forward. my note to the directors is to remind them of who they were. >> exactly, this is the issue, the directors of fannie and freddie have a lot of weight on them from washington. what will be the catalyst to get washington to move? >> i look at it as if i was a

bruce berkowitz's fund also a big shareholder of both. keep an eye on those shares.the break. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. >>> welcome back. about to do final tr

this is the hedge fund manager who runs pershing square and bruce berkowitz. those are the top two holders of the agencies' common stock. other hedgies have invested in their preferred shares. they could also get hit. they're two of many hedge fund managers betting that they will return nice dividends to investments as part of the post crisis restructuring plans. the plans that are now on the chopping block as lawmakers try to wind the agencies down. still, it isn't all bad for bill ackman today. his billion dollar short position, yes, that was a "b," in the multilevel marketer herbalife just got an announcement that it's under investigation by the federal trade commission. this is the news he's been waiting for for almost two long years. he believes that herbalife is a pyramid scheme. >> i was thinking of bill ackman with the fannie and freddie story and herbalife, what do you pay more attention with. you're losing with one and making money with the other. >> fannie and freddie are smaller investments for ackman. they're very volatile. they trade on the over

bruce berkowitz, preferred. ackman made a decision to get into the common.was hurt yesterday on this new plan. >> the "time" story for ackman. >> one of the things we learn about bill he's more of a genius than we think. he's a super genius. >> tesla the electric company. >> not more than he thinks but more than what you may think. >> i read "the new york times" piece and this is basically here u.s. attorney, here s.e.c., silver platter and instead all i hear is no, herbalife is a corrupt company. "the new york times" investigation was pulitzer. that's the type of thing if i'm -- if i'm the u.s. attorney, he'll say, well, call him in. i don't like the way this reads. but instead all i heard about was, yeah, herbalife has it coming and the big boxes in the garage and china. >> didn't get much from him on the china. a lot of people were waiting and the stocks started to trade up once they saw it wasn't much of anything on this new presentation. >> is he the judge, is he the jury or the prosecutor or all three? has he replaced the government? has he replaced th