Fannie Mae, Freddie Mac two of the worst-performing stocks of 2010: report
In what probably comes as no surprise to anyone, Fannie Mae and Freddie Mac were two of the worst-performing stocks of 2010. The two government-sponsored enterprises ranked as the fifth-worst and third-worst stocks of the Fortune 500 with price declines of 79% and 74%, according to CNNMoney.com. The stocks were delisted from the New York Stock Exchange in June and now trade on the over-the-counter Bulletin Board. Both stocks closed Friday at about 32 cents. The companies were put into federal conservatorship in September 2008 after amassing losses upward of $12 billion. Some estimate Fannie Mae and Freddie Mac may ultimately cost the government up to $1 trillion, according to CNNMoney. "Treasury will provide us with capital as needed to correct any net worth deficiencies that we record in any quarter through 2012," Fannie Mae states on its website. "The agreement is intended to ensure that we are able to continue providing liquidity and stability to the housing and mortgage markets." Meanwhile, Fortune tabbed homebuilder Lennar Corp. (LEN) as a stock to watch in the coming year, despite significant losses and share price that's down to about $15 from $67 a share in the summer of 2005. The magazine expects the housing market to recover in 2011, with demand eventually outpacing supply, putting Lennar in a good position for growth. Write to Jason Philyaw.