According to Bloomberg Daniel Mudd will take a leave of absence as chief executive officer of Fortress Investment Group LLC after he was sued by the U.S. Securities and Exchange Commission over his role as former CEO of Fannie Mae.
Fortress co-founder Randal A. Nardone will take over as interim CEO effective immediately, the New York-based manager of buyout and hedge funds said today in a statement.
"I have requested a leave of absence from my position as chief executive officer to ensure that any time or attention I need to focus on matters outside of Fortress will not affect the business or operations of the company," Mudd said in the statement.
Mudd and former Freddie Mac CEO Richard Syron were sued Dec. 16 for understating by hundreds of billions of dollars the subprime loans held by the firms. Fannie Mae, the government- sponsored enterprise that issues almost half of all mortgage- backed securities, and Freddie Mac, the McLean, Virginia-based mortgage company, had "agreed to accept responsibility" for their conduct, the SEC said.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/21/bloomberg_articlesLWKP0I6VDKHS.DTL
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