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

Fannie Mae

First Posted: 03/12/11 11:05 AM ET Updated: 05/25/11 07:40 PM ET

(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)

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Filed by Maxwell Strachan  |