Fortress CEO Quits Amidst Subprime Probe

Jan 25 2012 | 8:20am ET

Fortress Investment Group CEO Daniel Mudd resigned from the alternative investments giant yesterday, just over a month after he was sued by the Securities and Exchange Commission.

Mudd, who had been on a leave of absence since Dec. 21, is accused, along with other former executives of Fannie Mae and Freddie Mac, of making false and misleading statements about the firms’ exposure to subprime mortgages. Mudd was fired by Fannie in 2008, after four years at the helm, when the government took control of the firm.

Mudd has denied any wrongdoing. But he said that he did “not want the uncertainty associated with a leave of absence, on my part, to become a distraction for either Fortress or investors.”

Fortress has not been accused of any wrongdoing in the Mudd case.

Randal Nardone, co-founder of New York-based Fortress, will remain interim CEO in the wake of Mudd’s departure.

Mudd, who became CEO of Fortress in 2009, also resigned from the firm’s board of directors.

“We regret losing Dan,” Nardone and his fellow co-founders, Peter Briger and Wesley Edens, said. “We want to thank him for his leadership and for his many contributions to Fortress.”


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of