Bloomberg by DEREK KRAVITZ - The Associated Press December 16, 2011 "The Securities and Exchange Commission on Friday brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled investors about risky subprime loans that the mortgage giants held when the housing bubble burst. Those charged include the agencies' two former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis. The federal government has faced criticism for not bringing charges against top executives who may have contributed to the worst financial meltdown since the Great Depression. . . . Freddie told investors in 2006 that it held between $2 billion and $6 billion of subprime mortgages on its books. The SEC says its holdings were actually closer to $141 billion, or 10 percent of its portfolio in 2006, and $244 billion, or 14 percent, by 2008." - more - http://www.businessweek.com/ap/financialnews/D9RLP51O0.htm
These idiots were leveraged at 3 TIMES the amount that the typical investment bank was. Yes, you read that right. 90:1 :eek: