NEW YORK (TheStreet) — The Securities and Exchange Commission is suing former executives of Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) for allegedly misrepresenting their exposure to subprime loans to investors, according to a report by the Wall Street Journal.
The executives include former Freddie Mac Chief Richard Syron and Fannie Mae CEO Daniel Mudd. The SEC alleged that Fannie Mae executives misled the public about its exposure to subprime mortgages and Alt-A loans between December 2006 and August 2008. Freddie Mac executives also allegedly misled public about its subprime loan exposure between March 2007 and August 2008.
The SEC had sent Wells notices earlier this year to the executives informing them of their planned enforcement action, according to the report.
