Fortress CEO Quits Amidst Subprime Probe

Jan 25 2012 | 7:20am 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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.