Six former executives at Fannie Mae and Freddie Mac are now facing securities fraud charges for making misleading statements about the companies’ holdings of subprime loans between March 2007 and August 2008. The Securities and Exchange Commission (SEC) alleges that they fed the markets false information about the amount of risk on each company’s books. Both GSEs entered into non-prosecution agreements with the SEC and have agreed to cooperate in the litigation against their former executives.
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