Tuesday, October 20, 2015

SEC charges former Fannie Mae, Freddie Mac executives with fraud

By David S. Hilzenrath and Zachary A. Goldfarb December 16, 2011 Follow @Goldfarb

The SEC charged six former executives of Fannie Mae and Freddie Mac with securities fraud Friday, saying they misled the public about the companies’ exposure to subprime loans during the mortgage meltdown.

The executives charged in the civil suits include Daniel H. Mudd, former chief executive of Fannie Mae, and Richard F. Syron, who was chairman and chief executive at Freddie Mac.

The executives are among the most prominent individuals the Securities and Exchange Commission has accused of wrongdoing related to the financial crisis, and the legal action comes at a time when the SEC and the Justice Department are facing criticism for not doing more to hold executives accountable.  MORE