Summary Box: Ex-Fannie, Freddie execs charged

AP News
Posted: Dec 16, 2011 5:54 PM
Summary Box: Ex-Fannie, Freddie execs charged

EXECUTIVES CHARGED: Two former CEOs at mortgage giants Fannie Mae and Freddie Mac, and four other executives, were charged with civil fraud, the Securities and Exchange Commission said Friday. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis.

SUBPRIME LOANS: The executives were accused of understating the level of high-risk subprime mortgages that Fannie and Freddie held just before the housing bubble burst.

CRIMINAL CHARGES?: The Justice Department began investigating the firms three years but many legal experts say they don't expect the six executives to face criminal charges.