Former Fannie, Freddie execs sued by SEC

Agency claims firms misrepresented exposure to subprime mortgages

The Securities and Exchange Commission (SEC) filed a flurry of lawsuits today against former executives of Fannie Mae and Freddie Mac for allegedly misleading investors about their exposure to subprime mortgages.

The suits, filed in Manhattan federal court against ex-execs, claimed the two government-sponsored firms misrepresented their exposure to subprime mortgages. The SEC alleged that senior executives of the Federal National Mortgage Association (Fannie Mae) also distorted information on “Alt-A” loans between December 2006 and August 2008, while the executives of Federal Home Loan Mortgage Corp. (Freddie Mac) made false statements between March 2007 and August 2008.

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