FHFA Director James Lockhart to Resign

August 5, 2009 No Comments »

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Federal Housing Finance Agency Director James Lockhart is expected to resign shortly, according to a Bloomberg report.

The recently created agency, which oversees government-controlled entities Fannie Mae and Freddie Mac, was led by Lockhart since April 2006 after his appointment by former President George W. Bush.

The Treasury official who spilled the news and asked not to be identified said no long-term replacement had been lined up by the Obama Administration.

Apparently Lockhart, a good friend of Bush, said in an interview last year that he wouldn’t stay at the agency even if Obama asked him to, so perhaps this doesn’t come as any surprise.

The FHFA was created about a year ago after Fannie Mae and Freddie Mac fell into conservatorship amid record defaults and subsequent losses.

Lockhart has had his hands full since then, defending big bonuses as the pair asked for more and more money to stay afloat.

Share of both Fannie Mae and Freddie Mac popped today, rising about 33 percent each, though its unclear if it’s related to the resignation.

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