WASHINGTON (dpa-AFX) - Daniel Mudd, former Chief Executive Officer of Fannie Mae (FNMA.OB), agreed to pay the U.S. government $100,000 to settle allegations that he misled investors about the mortgage backer's exposure to subprime loans during the run-up to the financial crisis.
Three former Freddie Mac executives settled a similar Securities and Exchange Commission lawsuit against them in April 2015.
The SEC brought the case against Mudd and two other Fannie Mae executives in December 2011 amid calls from the public for more individuals to be held responsible for the financial crisis. The cases hinged in part on the definition of what constituted a 'subprime mortgage.' The other two executives settled in September 2015.
In September 2008, the U.S. government took over mortgage giants Fannie Mae and Freddie Mac, putting them into a conservatorship and forcing out their top executives. The companies eventually received about $187.5 billion in bailout money, before becoming profitable again in 2012.
Copyright RTT News/dpa-AFX