Ex-Fannie, Freddie Execs Sued

    Dr. Richard F. Syron, Chairman and Chief Executive Officer, Freddie Mac and Daniel H. Mudd, President and Chief Executive Office, Fannie Mae on left, listen to a representative's at a hearing  entitled "Legislative and Regulatory Options for Minimizing and Mitigating Mortgage Foreclosures" of the House Financial Services Committee on September 20,2007.Photograph: Dennis Brack/Bloomberg News.

    Dennis Brack, Bloomberg News / Getty Images

    The Securities and Exchange Commission has sued six former executives at Fannie Mae and Freddie Mac with civil fraud, alleging that they misled the government and taxpayers about the size of the companies' risky subprime mortgage holdings during the housing bust in 2008. Both agencies' former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron, who led the companies during the housing bubble in late 2006 and early 2007, were among those charged. They are two of the highest-ranking financial figures to be sued following the financial crisis.

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