“Mudd and Dallavecchia spoke to investors on conference calls and repeated (Fannie’s) misleading disclosures while emphasizing that (Fannie’s) subprime exposure was ‘immaterial,’ and constituted approximately ‘zero percent’ of (Fannie’s) book of business.”
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Former Fannie execs denied dismissal of subprime fraud suit
Three former executives at Fannie Mae lost their bid to end a Securities and Exchange Commission lawsuit alleging investor fraud.
The SEC filed suit against former CEO Daniel Mudd, former Chief Risk Officer Enrico Dallavecchia and the former chief of the single-family operation Thomas Lund for misleading investors about the entity’s exposure to risky subprime mortgages. Each served at the firm between 2005 and 2009.
When Mudd took over in 2005, Fannie stock traded above $60 a share. By September 2008, when he left, the company was thrown into conservatorship and has taken more than $116 billion in bailouts since. Taxpayers are also funding attorney fees in several suits against former government-sponsored enterprise executives.
The SEC alleged in a December 2011 lawsuit these three executives excluded nearly $100 billion in loans written to borrowers with weak credit histories from their financial disclosures. The GSE also allegedly failed to count $28.5 billion in mortgages bought from the Countrywide subprime unit in 2007.
Rest here…
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This will go nowhere just like the investigation into Goldman…wise up!
HSBC Bank USA can continue without any problems it’s *Money Laundering Operations*. Bank Crimes shouldn’t pay.
This is good. The predation the Treasury Department unleashed on the American people must have come from a small group of individuals who knew exactly what they were doing. No exaggeration. To intentionally prey on people coast to coast isn’t specifically equal to bombing them, but it comes very close. Giving people loans that they cannot pay back has been illegal, in one form or another, for hundreds if not thousands of years. Fannie/Wall Street intentionally gave loans that could not be paid back. Like children attempting to cover obvious mischief , they have either blamed homeowners, or dishonestly appealed to so-called moral hazard.
This is good. The predation the Treasury Department unleashed on the American people must have come from a small group of individuals who knew exactly what they were doing. No exaggeration. To intentionally prey on people coast to coast isn’t specifically equal to bombing them, but it comes very close. Giving people loans that they cannot pay back has been illegal, in one form or another, for hundreds if not thousands of years. Fannie/Wall Street intentionally gave loans that could not be paid back. Like children attempting to cover an epic scam they have either blamed homeowners, or dishonestly appealed to so-called moral hazard.