Fannie Mae’s former CEO may have some explaining to do to the SEC. Daniel Mudd, former CEO of Fannie Mae, was the recipient of a Wells notice from the Securities and Exchange Commission, which is considering taking legal action against him[1]. A Wells notice informs the recipient that the SEC is considering legal action and allows the recipient to preempt that action with a formal rebuttal and evidence. Mudd has announced publicly that he will respond to “make clear why the SEC staff should not pursue any action in this matter.”
The notice stated that Mudd could face civil enforcement action for “alleged securities-law violations”[2]. Mud was named CEO of Fannie Mae in 2004 after the SEC found the GSE guilty of violating accounting rules and removed in 2008 when the government assumed control of both Fannie Mae and Freddie Mac[3]. The SEC has stated that the GSEs’ exposure to subprime mortgages may have been understated or even deliberately downplayed. Mudd denies this, citing prior investigations into GSE disclosures.
Do you think that Daniel Mudd should be investigated?
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[1] http://www.dsnews.com/articles/former-fannie-exec-issued-wells-notice-as-lawmakers-plan-gse-wind-down-2011-03-14
[2] http://www.mortgageorb.com/e107_plugins/content/content.php?content.8047
[3] http://www.boston.com/business/articles/2011/03/14/sec_may_charge_former_head_of_fannie_mae/
Angelo Mozilo of countrywide should also be investigated
Mudd should indeed be investigated. Fraud in the entire system and ridiculus loans hurting other investors. Nothing more than a common criminal. We keep putting inept and horrible managers in important places.
I think they should start with the loan officers and mortgage companies who fudged numbers on loan apps. I saw many home buyers who couldn’t qualify for a home, my LO would deny them credit. The next month they would be closing on their new home with a new loan officer and real estate agent. The past year I have been selling these homes as short sales and foreclosures.
Without a doubt he should be investigated. But so should Barney Frank, Chris Dodd, Angelo Mozilo and many others. They have brought this industry to it’s knees and ruined the financial lives of so many.
Bryan, They won’t be able to stop right there with him because our Govt. was pretty much forcing the GSEs to do what they were doing. It needs to go through every administration, senate and house member as well. He is merely a scape goat in all of this.
I get a kick out of watching these “investigative” commitees interrogate the “law breakers” when those same people likely knew exactly what was going on.
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YES Daniel Mudd should be investigated! Also those that worked for him that knew of what was going on and did what he told them to do!
Franklin Raines should be investigated.
Yes, I do think that Mudd should be investigated.
Yes, he should be investigated to find out who was pulling his strings and whose strings he was pulling. Picking a name out of the hat for all of this mess is simply foolish. Many were involved. Many got very wealthy. The rest of us (consumers,taxpayers,honest loan officers, appraisers, etc.) got the shaft.