Sunday, 29 May 2016
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Mar 14 2011 | 6:20pm ET
The CEO of Fortress Investment Group is likely to face a Securities and Exchange Commission lawsuit over his stewardship of mortgage giant Fannie Mae.
Daniel Mudd, who was CEO of Fannie Mae from 2004 until he was fired in 2008 when the federal government assumed control of the firm, said in a statement that he has received a Wells Notice from the regulator, indicating that it plans to bring an enforcement action against him. Mudd became CEO of Fortress in August 2009.
"I have been informed that the SEC staff has sent my counsel a Wells Notice arising out of my service at Fannie Mae," Mudd said in the statement, issued to Bloomberg News. "In keeping with SEC procedures, I intend to submit a written response that will make clear why the SEC staff should not pursue any action in this matter."
Mudd's Wells Notice follows two issued last month to one current and one former Freddie Mac executive.
"As the executive responsible for initially registering Fannie Mae with the SEC, and having led the company through the SEC-mandated restatement, I have the highest respect for the Commission," Mudd said. "Nevertheless, I could not disagree more with this turn of events."