Bruce Berkowitz’s Fairholme Capital Management LLC has submitted a proposal for private investors to commit about $52 billion and buy businesses held by Fannie Mae and Freddie Mac that insure mortgage-backed securities.

The companies would be capitalized with about $34.6 billion in exchange for preferred stock in the entities and at least $17.3 billion in additional funds would be raised through preferred holders and a rights offering, Fairholme said Wednesday in a statement distributed by Business Wire.