Ex-Fannie Mae CEO Daniel Mudd May Face Claims Of Misleading Investors On Subprime Loans

(Reuters) - Daniel Mudd, the former CEO of government-sponsored mortgage firm Fannie Mae, has received notice from U.S. regulators that he may face claims for allegedly misleading investors about the mortgage company's exposure to subprime loans, Bloomberg said.

Mudd, who was ousted from Fannie Mae in 2008 and is now chief executive of hedge fund Fortress Investment Group LLC, confirmed he received a so-called Wells notice on Friday from the U.S. Securities and Exchange Commission, and said he plans to rebut the allegations, Bloomberg said.

A Wells Notice is a letter from the SEC that warns people or firms the agency is considering a civil action against them.

Mudd could not immediately be reached for comment

(Reporting by Ransdell Pierson; Editing by Ed Lane)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[contrariandy]

07:54 PM on 03/14/2011

Well, if he didn't mislead investors, his Wall Street masters would have said that he wasn't doing his job.

[george6090]

03:30 PM on 03/14/2011

And Country Wide and Ameriquest and Wells Fargo and Freddie and...all the other sub-prime vultures. What about Fitch, Standard and Poors, Moody's with out the rating agencies this could never have had the impact that these three allowed.

[matthewhgrant]

07:38 AM on 03/14/2011

and what about blankfein, paulson (both of them), fuld, et al? im pissed, it's time to get them all and take their money back too! ill gotten gains. make their spouses all move to boca like ruth did. let them eat cake.

[blackranger]

10:20 PM on 03/13/2011

It only makes sense to spend your money with those who are seeking the same long term interests. I support my local businesses, NOT walmart because Walmart would not even allow our toys for tots boxes during the holidays, but they did collect jackets to send out of the area. I support my local bank that makes loans for small businesses in the area and actually makes in-house home loans and if you have a problem, they work with you. Americans need to start supporting each other instead of the multinational companies that will take your money and invest it all over the world.

[t and star]

09:33 PM on 03/13/2011

may? ahahahahahaaaaaaa

that was good.

[noaxe397]

09:16 PM on 03/13/2011

It's Jimmy Carter's fault.
 
Oh, wait, this was Bush's man at Fannie.

[contrariandy]

07:56 PM on 03/14/2011

Roger, you should have taught your son Daniel better values, not bettor values.

[Lorianne]

08:24 PM on 03/13/2011

Oh this is rich.
May have?
 
"We do not have a crisis at Freddie Mac and particularly Fannie Mae ..." 

[matthewhgrant]

07:39 AM on 03/14/2011

the "may" allows them an out. because, nothing will happen.

[vippy]

05:57 PM on 03/13/2011

oh whoopdi-doo!  We were all misled with the TARP and our politicians were in with Wall Street and one by one is being let go of any crimes because they all are in it together. Oh sure, they pick a soul here and there just to show us that the system works but don't get fooled, the big ones got away and won't be held responsible.  Watch INSIDE JOB now available at Blockbusters, a documentary of the biggest heist perpetrated on the American People.  And you will see, that no party had a concern for its citizens but themselves and their friends.  I hope people will learn then never to vote DEM or REPUB again or we won't ever get out of this hamster wheel. 

[IfIonlyknew]

05:53 PM on 03/13/2011

Wow....After all this time they say he maybe guilty of what we thought he was guilty of. Man is that
some good reporting.

[Lolie Culley]

04:35 PM on 03/13/2011

Some of US mortgages were first guaranteed by Fannie Mae, when the market collapsed Sept. 2008, these mortgages were shifted to Freddie Mac. If people will know about their mortgages and what these big banks did to them, there will be a "Peoples Revolution on the Street". But, because our government is preventing the people in knowing about their mortgages by hiding the truth from them, most of us are still calm. We could only take much, when people reach the end of the rope, that's when Revolution occur.

[happycat]

04:15 PM on 03/13/2011

Duh.

[desertman]

05:21 PM on 03/13/2011

haha yeah that's a revelation.

[Father Tom]

02:38 PM on 03/13/2011

"May face CLAIMS"?? Really scary to him, I bet.

[iridium53]

12:48 PM on 03/13/2011

The SEC will not jail this guy, he needn't worry.

They'll find a way to make someone pay, and simultaneously curry favor with his lawfirm so they can get better jobs later - and spend all their time downloading porn while they do it.

[Derek Lantin]

10:46 AM on 03/13/2011

Sir

With respect, when a banker says that they “may have misled investors” , I become convinced that he is “being economical with the truth”.

Sincerely, Derek Lantin. http://dereklantin.booksabuzz.com

[AZreb]

09:38 AM on 03/13/2011

May face "claims" of misleading the public - and if those claims are proven valid, will he face charges and be prosecuted? Not likely.