James B. Lockhart 3rd, a vice chairman of WL Ross & Co., the distressed-investment unit of Invesco Ltd., and a former director of the Federal Housing Finance Agency, said the U.S. housing decline may not be over.

Speaking Friday at a conference in New York, Lockhart said he is "concerned there may be another leg down" for housing due to the pace of foreclosures. "Hundreds of banks will be taken over," he said.

WL Ross was among nine asset managers chosen by the Treasury to take part in its $40 billion Public-Private Investment Program.

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