The Securities and Exchange Commission has brought civil actions against six former top executives at the mortgage giants Fannie Mae and Freddie Mac, saying that the executives did not adequately disclose their firms’ exposure to risky mortgages in the run-up to the financial crisis NY Times’ Dealbook reports.
The cases represent the first major action by the federal agency in its more than three-year investigation of the government-controlled mortgage giants that were at the center of the housing crisis.
The agency filed complaints against three former executives at Fannie Mae – its chief executive, Daniel H. Mudd; chief risk officer, Enrico Dallavecchia, and executive vice president Thomas A. Lund.
Freddie Mac’s former chief executive, Richard F. Syron; Patricia Cook, its chief business officer, and executive vice president Donald J. Bisenius were also named in a separate complaint.
“Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” Robert Khuzami, the head of enforcement for the S.E.C., said in a statement….
Find out more at http://dealbook.nytimes.com/2011/12/16/s-e-c-sues-6-former-top-fannie-and-freddie-executives/?ref=business
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