SEC Coming After Former Execs from Fannie & Freddie

by 16 Dec 2011
[caption id="attachment_5550" align="alignleft" width="278" caption="Fannie Freddie"]Fannie Freddie[/caption]

NEW YORK (CNNMoney) -- The Securities and Exchange Commission charged six former executives of Fannie Mae and Freddie Mac with securities fraud on Friday for misrepresenting their holdings of high-risk mortgage loans.

The SEC is targeting three former executives of Freddie Mac, including chief executive officer Daniel Mudd, chief risk officer Enrico Dallavecchia and executive vice president of single-family mortgage business Thomas Lund.

The agency is also going after three former executives of Fannie Mae: CEO Richard Syron, executive vice president and chief business officer Patricia Cook and executive vice president for the single family guarantee business Donald Bisenius.

The SEC is seeking financial penalties against them, but did not specify an amount.

Mortgage finance giants Freddie Mac and Fannie Mae, which play a central role in the U.S. housing market by keeping the cost of mortgages lower, received the biggest federal bailout of the financial crisis.

In addition, top executives have drawn some $100 million in pay.

Source: CNN Money, read story.

COMMENTS

Poll

Is TILA-RESPA a good or bad thing long term?