US charges 6 former executives of Fannie Mae, Freddie Mac
Updated: 2011-12-17 05:57
WASHINGTON - US Securities and Exchange Commission (SEC) Friday charged six former top executives of Fannie Mae and Freddie Mac with securities fraud, alleging they were involved in misleading subprime loans.
The financial watchdog alleged they knew and approved of misleading statements, claiming the companies had minimal holdings of higher-risk mortgage loans, including subprime loans.
The defendants were three former Fannie Mae executives, including former CEO Daniel H. Mudd, former Chief Risk Officer Enrico Dallavecchia, and former Executive Vice-President of Fannie Mae's Single Family Mortgage business Thomas A. Lund, and three former Freddie Mac executives, including former Chairman of the Board and CEO Richard F. Syron, former Executive Vice-President and Chief Business Officer Patricia L. Cook, and former Executive Vice-President for the Single Family Guarantee business Donald J. Bisenius.