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In what was billed as a high profile case, the SEC had sought financial and other penalties against three former Freddie Mac executives who allegedly “misled” investors in 2006 by understating the amount of subprime exposure the GSE had on its books while it was simultaneously still sucking up/packaging bad loans. SNIP-- Here’s AP: According to the SEC, Fannie and Freddie misrepresented their exposure to mortgages for borrowers with weak credit in reports, speeches and congressional testimony. The SEC said Freddie told investors in late 2006 that it held between $2 billion and $6 billion of subprime mortgages on its...

<p>NEW YORK (CNNMoney.com) — Freddie Mac's chief executive, installed last year after the government took over the troubled mortgage finance company, is resigning, the company and its regulator said Monday.</p> <p>David Moffett will step down by March 13. Freddie Mac (FRE, Fortune 500) said it would announce a successor by then.</p>

Housing finance company Freddie Mac plans to put $1 billion into mortgages and home-repair loans in areas damaged by Hurricane Katrina, an effort praised by critics of the company as Congress considers legislation to increase regulation of Freddie and its larger rival, Fannie Mae. In Baton Rouge, La., yesterday, Freddie Mac chairman and chief executive Richard F. Syron and members of the Louisiana congressional delegation announced Freddie Mac's plan to buy $1 billion worth of bonds from state and local housing finance agencies. By accepting a below-market rate of return on the bonds, the purchase will allow cut-rate financing for...

" .. Dan Mudd, the CEO of Fannie Mae, is getting $9.3 million of severance for destroying his company. Richard Syron, the CEO of Freddie Mac, is getting $14.1 million .." "But the severance money comes right out of the pockets of taxpayers, who didn't agree to the severance deals and aren't ponying up to save the companies because they want to. Taxpayers are saving Fannie and Freddie because they have to--because Mudd and Syron were incompetent. 'Incompetent'? Is that too harsh? Absolutely not. Both men gambled big and lost bigger. The fact that they may not have appreciated how...

The US economy faces a 40 to 45 per cent risk of recession induced by the housing market downturn, the chief executive of Freddie Mac warned on Thursday as data showed sales of new homes hit a seven-year low in August. Richard Syron, chief executive of the government-sponsored mortgage company, said the credit squeeze had left some parts of the US housing market “literally frozen”. This was a “substantial depressive to the overall economy”. He forecast the Federal Reserve would make another “material” cut in interest rates. Mr Syron also predicted that Congress would bring some relief to the troubled...