Fannie, Freddie Ex-Officials Are Accused of Fraud

[dbt]

Source: cnbc.com

U.S. securities regulators sued six former top executives at Fannie Mae and Freddie Mac on Friday, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust.

The U.S. Securities and Exchange Commission sued three former executives at Fannie Mae and three at Freddie Mac. Those charged include the agencies' two former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis. <snip>

According to the lawsuit, Fannie told investors in 2007 that it had roughly $4.8 billion worth of subprime loans on its books, or just 0.2 percent of its portfolio. The SEC said that Fannie actually had about $43 billion worth of products targeted to borrowers with weak credit, or 11 percent of its holdings. <snip>

So far, the companies have cost taxpayers almost $150 billion — the largest bailout of the financial crisis. They could cost up to $259 billion, according to its government regulator, the Federal Housing Finance Administration.


Read more: http://www.cnbc.com/id/45697425

[KoKo]

1. Hopefully this will go somewhere....but why do I think they will get off with a fine

and an admission of "Who Could Have Known?"

Still...good to see the SEC being a little more forceful. It's long past time!

[countryjake]

2. kickety

.