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Ackman is proposing a restructuring of Fannie and Freddie in which the common and preferred equity would be extinguished and the subordinated debt exchanged for equity warrants.

"What we're doing is almost like a pre-packaged restructuring for bankruptcy here," he said. In addition, the government would essentially write a 3-year put agreement for new common stock.

"Today, a private investor will not put money into Fannie and Freddie. The equity's too far out of the money -- there's too much debt -- and therefore, the government should not put equity into (them)," he said.