The U.S. Securities and Exchange Commission is suing Daniel Mudd and Richard Syron, the former chiefs of Fannie Mae and Freddie Mac, over disclosures they made about subprime loans.
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Complaints were filed against the two men in Manhattan federal court today. Also being sued by the regulator are Enrico Dallavecchia, who was chief risk officer for Fannie Mae; Thomas Lund, Fannie’s former executive vice president; Patricia Cook, Freddie Mac’s former executive vice president; and Donald Bisenius, who was a senior vice president at Freddie.
Within 18 months, subprime mortgage-related losses pushed each to the brink of insolvency, and forced the government to step in and take over.
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