Bruce Berkowitz continued to increase Fairholme's financial holdings through the 2nd quarter.

New Holdings
    BP
    Goldman Sachs Group
    MBIA
    Morgan Stanley

Increased Holdings                         Decreased Holdings
    AIG                                                   Americredit
    Bank of America                                Berkshire Hathaway B
    Citigroup                                            Comcast
    RSC Holdings                                    Daily Journal Corp
    AIG pfd 8.5%                                    Hertz
                                                              Humana
                                                              Leucadia National
                                                              Regions Financial
                                                              Sears Holdings
                                                              Spirit Aerosystems
                                                              Tal International
                                                              Wellcare
                                                              Winthrop Realty Trust