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SEC charges Fannie, Freddie execs with fraud

Execs underreported mortgage giants' exposure to risky loans, SEC alleges

The U.S. Securities and Exchange Commission on Friday charged six former top executives of Fannie Mae and Freddie Mac, including their former chief executives, with securities fraud, alleging they misled investors about the extent of the mortgage giants' exposure to higher-risk subprime loans. In two separate lawsuits, the SEC filed charges against three former Fannie Mae executives: former CEO Daniel H. Mudd; former chief risk officer Enrico Dallavecchia; and former executive vice president of Fannie Mae's single-family mortgage business Thomas A. Lund; and three former Freddie Mac executives: former chairman of the board and CEO Richard F. Syron; former executive vice president and chief business officer Patricia L. Cook; and former executive vice president for the single-family guarantee business Donald J. Bisenius. Fannie Mae, known officially as the Federal National Mortgage Association, and Freddie Mac, officially the Federal Home Loan Mortgage Corp., both entered into nonprosecu...