BREAKING: SEC sues former top execs at Fannie, Freddie

www.orlandosentinel.com...

U.S. securities regulators sued six former executives at Fannie Mae and Freddie Mac on Friday, including ex-CEOs of both mortgage finance companies, saying they misled investors over exposure to risky home loans.

The U.S. Securities and Exchange Commission sued three former executives at Fannie Mae and three at Freddie Mac. The civil charges were brought in two separate lawsuits filed in U.S. District Court in Manhattan.

The SEC accused former Fannie Mae CEO Daniel Mudd, former Freddie Mac CEO Richard Syron and four other defendants of knowingly approving false statements to investors that drastically misrepresented the extent of the firms' exposure to toxic mortgages.

Spokesmen for Mudd and Syron did not immediately respond to requests for comment.

Freddie Mac and Fannie Mae have been propped up by $169 billion in federal aid since they were rescued by the government in 2008.

The cases are SEC v. Daniel Mudd et al., No. 11-9202 and SEC v. Syron et. al No. 11-9201, U.S. District Court for the Southern District of New York.

This is such great news!

I doubt Barney Frank's retirement will be able to save him from any lawsuits he's going to be hit with.

Let's keep an eye on how this is going to develop. Hopefully, arrests and trials will result.

Here's another article:
bottomline.msnbc.msn.com...

SEC charges ex-Fannie, Freddie CEOs with fraud

The Securities and Exchange Commission said it sued three former executives at Fannie Mae and three at Freddie Mac Friday. The civil charges were filed in two separate lawsuits in federal court in New York City. Among those charged were former Freddie Mac CEO Richard Syron and former Fannie Mae CEO Daniel Mudd.

"Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was," said Robert Khuzami, Director of the SEC's Enforcement Division. Khuzami added that these misstatements "misled the market about the amount of risk on the company's books."

I wonder what newt will have to say about this

Originally posted by THE_PROFESSIONAL
I wonder what newt will have to say about this

That all he did was consult them.


Barney Frank needs to be marched right on with those listed.

Maybe that is why is stated he will not run for re-election. He new this was coming.

reply to post by macman

He new this was coming.

I have a feeling that many are retiring for just this reason. It seems as though a lot of high profile people in the government are beginning to retire as if this will help them. I wonder if any are planning on retiring to South America?

I have to say that this is one of the last things I would expect from the SEC these days

Originally posted by Afterthought
reply to post by macman

 

He new this was coming.

I have a feeling that many are retiring for just this reason. It seems as though a lot of high profile people in the government are beginning to retire as if this will help them. I wonder if any are planning on retiring to South America?

I have been told that Costa Rica is a great place for Americans to go.
Panama is rising alongside Guatemala.
All very America friendly and the Dollar goes a LONG way.

The election is right around the corner the administration has to do whatever they can to look as though they are actually doing something. it will be like all of the other recent hearings. either:a. nothing will come of it, or b. one person will go down as a scape goat and get a slap on the wrist.

reply to post by Shillbillyjim


Let's keep hoping that slaps on the wrists won't happen. There are lots of people who can be brought down for this and I hope it happens.

If anyone hasn't seen this thread about the investigations taking place, it's worth a looksee:
www.abovetopsecret.com...
I'll be filling out my paperwork this weekend and getting it sent in as soon as I can. I've thought about it and don't see a reason for waiting until April to submit it. I figure the sooner the better.

Well, I hope Fannie and Freddie's CEOs and others who have been charged aren't let off as easily as these folks were.

money.cnn.com...

The SEC said that Ruettiger agreed to pay $382,866 without admitting or denying the allegations. Ten other associates of Ruettiger also settled charges, while litigation continues against two others.

The SEC charges that Ruettiger and his associates participated in a so-called a "pump-and-dump" scheme to inflate the value of the stock of his sports drink company in 2008. It said the scheme generated more than $11 million in illicit profits.

Wow! $11 million in profits and all they have to do is pay $382,866? Can someone who's good in math help me figure out what percentage of their profits that actually is?
They didn't even have to submit a guilty or not guilty plea either.

Looking at how this fraud case was handled by the SEC, it seems as though Fannie and Freddie may get a slap on the wrist after all. Although I hope this is not what's going to happen.

Another case of wait and see.

Hmm..

It seems to me that they are trying to take the spotlight off of Newt.