SEC Sues Former Fannie, Freddie CEOs

The Securities and Exchange Commission brought charges against six former executives of Freddie Mac and Fannie Mae—including ex-CEOs Richard Syron and Daniel Mudd—in Manhattan federal court Friday. The defendants face fraud charges tied to disclosures they made about subprime loans. They "told the world that their subprime exposure was substantially smaller than it really was," Robert Khuzami an SEC director said. The SEC is seeking unspecified damages, Bloomberg News reported, and both firms have agreed to cooperate. The companies, which were each recipients of multi-billion dollar federal rescue packages in 2008, are not named as defendants.

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