SEC moves to charge Fannie, Freddie execs

[alp227]

Source: The Washington Post

The Securities and Exchange Commission is moving toward charging former and current Fannie Mae and Freddie Mac executives with violations related to the financial crisis, setting up a clash with the housing regulator that oversees the companies, according to sources familiar with the matter.

The SEC, responsible for enforcing securities laws, is alleging that at least four senior executives failed to provide necessary information to investors about the companies’ mortgage holdings as the U.S. housing market collapsed.

But the agency that most closely regulates Fannie and Freddie, the Federal Housing Finance Agency, disagrees with that assessment, according to sources familiar with the matter.

FHFA officials think Fannie and Freddie’s financial disclosures, which agency staff members had reviewed before the documents were released to the public, were sufficient, the sources said. One source added that FHFA has sent a letter to the SEC opposing the filing of charges.

Read more: http://www.washingtonpost.com/business/economy/sec_moves_toward_charging_fannie_mae_freddie_mac_executives/2011/03/17/AB535zm_story.html

[The Northerner]

1. K&R

[quakerboy]

2. How about the others?

I'd be willing to bet that for each x bad things fannie and freddie did, BOA, citi, et al have done x*10.

[thelordofhell]

3. It's that rotten 15%

That ruined it for the other 85

[dixiegrrrrl]

4. Bear in mind..this involves only "civil" cases, not criminal.

The SEC has sued, and won, several of the big banks, then fined them the equivalent of 1% of their ill gotten gains.
( No idea if the banks even bothered to pay the fines)
Essentially the criminal banks have paid a "hush money tax" on the SEC, avoided all criminal charges because Holder of course has refused to file any charges, so the banks continue business as usual.

NO criminal charges have ever been pursued against the banks.

In fact, Holder just dropped ALL charges against Countrywide CEO Mozillo, saying it would be "too much trouble" essentially to pursue him.

[BobbyBoring]

5. But but

What about Franklin Raynes?? The guy Limbaugh and his minions blames for the whole housing meltdown?? He MADE the banks lend to poor people and stuffed millions in his pockets:crazy:

All kidding aside, Mudd should be locked up for the rest of his life and be stripped of everything he owns. I imagine his father Roger has helped keep him out of the limelight so far.