"The government didn't cause that loss, it simply recognized it," Frank argued.

On the other hand, he said he has "little sympathy with the vultures," and he questions their ability to use the fifth amendment to profit from their investment.

"We didn't take any of their property. They're buying up property that we've taken from other people. I don't know enough about takings law to tell you what the answer is on that. I would say this: I wouldn't take it before a jury if I were they."

I asked Frank if he considered hedge funds unsympathetic, and he responded, "No. Vultures are unsympathetic. Oh my god. Look at poor me. I bought this stuff up at eight cents on the dollar and they won't give me the dollar back."

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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