Stock of GSEs is a zero says Lockhart

|By:, SA News Editor

"It's a stretch," says former FHFA chief James Lockhart of those investors who have bought up the stock of Fannie Mae (FNMA) and Freddie Mac (FMCC) hoping to profit should government lift its thumb off the companies. "The (common) stock and the preferred is worthless and should be worthless."

Lockhart is now vice chairman at WL Ross & Co, where they know a thing or two about distressed securities.