SEC Sues Former Heads of Fannie and Freddie
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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