Some folks just can’t take the heat. Bloomberg reports Fortress Investment Group said Daniel Mudd resigned as CEO and a director of the New York-based hedge fund and private-equity firm after a leave of absence to respond to a government lawsuit.
“I do not want the uncertainty associated with a leave of absence, on my part, to become a distraction for either Fortress or its investors, and thus, I have decided to resign,” Mudd said yesterday in a statement.
Randal Nardone, Fortress principal and co-founder, will continue to serve as interim CEO, according to the statement.
Mudd, formerly CEO of Fannie Mae (FNM), took a leave from Fortress on Dec. 21 to respond to allegations by the Securities and Exchange Commission. He and former Freddie Mac CEO Richard Syron were sued for understating by hundreds of billions of dollars the subprime loans held by the government-owned mortgage finance companies. Mudd denied the claim, saying the U.S. government and investors were aware of “every piece of material data about loans held by Fannie Mae….”
Learn more at http://www.bloomberg.com/news/2012-01-25/fortress-chief-executive-officer-daniel-mudd-resigns-amid-fannie-mae-probe.html
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