Economy

Demeter

(85,373 posts)

33. Accountability! SEC Charges Former Executives at Fannie Mae and Freddie Mac with Fraud

Sat Dec 17, 2011, 07:01 AM

Dec 2011

http://www.alternet.org/newsandviews/article/749226/accountability!_sec_charges_former_executives_at_fannie_mae_and_freddie_mac_with_fraud_related_to_subprime_mortgages/#paragraph4

The Securities and Exchange Commission (SEC) just announced securities fraud charges against six former executives of Fannie Mae and Freddie Mac. The SEC alleges that Fannie and Freddie intentionally misled investors into believing that the company was less involved with riskier, or subprime, mortgages than was actually true.

According to Court House News:

Charged in separate complaints were Fannie Mae's for CEO Daniel Mudd, its former Chief Risk Officer Enrico Dallavecchia, and former Executive Vice President of Single Family Mortgages Thomas Lund.

Charged in the Freddie Mac complaint were former Chairman of the Board and CEO Richard Syron, former Executive Vice President and Chief Business Officer Patricia Cook and former Executive Vice President for Single Family Guarantee business Donald Bisenius.

The SEC seeks financial penalties, disgorgement of ill-gotten gains and injunctions against all six.

According to court documents, "This action arises out of a series of materially false and misleading public disclosures by the Federal National Mortgage Association ("Fannie Mae" or the "Company&quot

." Between December of 2006 and August of 2008, the case alleges, those charged "made or substantially assisted others in making materially false and misleading statements regarding Fannie Ma e ' s exposure to subprime and Alt-A loans."

...Finally, we are holding the greedy thieves who wrecked the economy accountable for the disasters they created. I wonder what Occupy Wall St. might have to do with that?

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