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Breaking: Six Top Fannie And Freddie Execs Charged With Sub-Prime Mortgage Fraud That Led To Economic Crisis



Dec 16, 2011 11 Comments ›› Pat Dollard

WASHINGTON (AP) — The Securities and Exchange Commission has charged six former top executives at Fannie Mae and Freddie Mac with civil fraud, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust.

Those charged include the agencies’ two former CEOs, Fannie’s Daniel Mudd and Freddie’s Richard Syron. They led the companies when the housing bubble burst in late 2006 and 2007. The four other top executives also worked for the companies during that time.

The case was filed in federal court in New York City.

Lawyers for Mudd and Syron couldn’t be reached.

Fannie and Freddie own or guarantee about half of U.S. mortgages, or nearly 31 million loans. The Bush administration seized control of the mortgage giants in September 2008.


  • ATTILA

    Scapegoats for the barney franks types that created the mess to began with.(community reinvestment act)

  • ATTILA

    Scapegoats for the barney franks types that created the mess to began with.(community reinvestment act)

  • Burlington

    I will eat my shorts if Franklin Raines or Jamie Gorelick are among those not named but charged.  Roger Mudd doesn’t have the clout anymore to protect his son.

  • JIM D

    Frank, schumer, little tony wiener should all be part of this, They had a much bigger part in this than just cheerleaders!

  • JIM D

    Frank, schumer, little tony wiener should all be part of this, They had a much bigger part in this than just cheerleaders!

  • Charlie from New Jersey

    It was Chris Dodd, Barney Frank, Bill Clinton and the entire Democratic party that was responsible for the sub-prime mortgage crisis.  These guys just tried to sell the buckets of warm shit to others, after they were forced to buy them.  If the world is right, these guys would turn state’s evidence against the liberals in Congress and the Clinton Administration.

  • Anonymous

    I’d love to see a re post of Barney and Maxine defending Fannie when Bush was trying to reign them in. I saw it here a few years ago.    

  • Anonymous

    I’d love to see a re post of Barney and Maxine defending Fannie when Bush was trying to reign them in. I saw it here a few years ago.    

  • Bbiz

    Gorelick creates disasters wherever she goes.  God knows who favors her.  She and whoever protects her should be dealt with in extreme prejudice after creating the separation between the CIA and the FBI under Clinton.  Her fraud and theft at the GSE is just more of the same.  And Raines?  I would love to know whose lap dog he is……

  • Burlington
  • Matt C.

    About time – although civil charges? How about criminal. GSEs should not exist. Hopefully one of them squeals loud enough to pin Dodd and/or Frank. Coincidence that Frank is high tailing out of the political arena while this is going down?