'SEC charges ex-Fannie, Freddie CEOs with fraud'

Discussion in 'Wall St. News' started by Wallace, Dec 17, 2011.

  1. 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 -
  2. Bob111


    and if they win,then money goes to? right...SEC..
  3. These idiots were leveraged at 3 TIMES the amount that the typical investment bank was. Yes, you read that right. 90:1