Regulators sue former top execs at Fannie, Freddie

Reuters News
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Posted: Dec 19, 2011 4:06 AM
Regulators sue former top execs at Fannie, Freddie

NEW YORK (Reuters) - Securities regulators sued former top executives at Fannie Mae and Freddie Mac on Friday, saying they misled investors over exposure to risky mortgages.

The U.S. Securities and Exchange Commission sued three former executives at Fannie Mae and three at Freddie Mac, including former chief executives of both companies. The civil charges were filed in two separate lawsuits.

The SEC said both firms have agreed to cooperate with the agency and have entered into non-prosecution agreements.

Freddie Mac and Fannie Mae have been propped up by about $169 billion in federal aid since they were rescued by the government in 2008.

(Reporting by Basil Katz, editing by Gerald E. McCormick)