Fannie Mae, Freddie Mac Execs Accused of Fraud

U.S. government investigates mortgage bosses for financial recklessness.
2:31 | 12/16/11

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Transcript for Fannie Mae, Freddie Mac Execs Accused of Fraud
Will any financial titans ever have to answer for fueling the economic crisis that overwhelms so many main street Americans. Three point six million American homes have fallen into foreclosure. In the four years -- that recession began and tonight. Five men one woman millionaire mortgage bosses from Fannie Mae and Freddie Mac stand accused of civil fraud by the US government. ABC's Cecilia Vega tells us why investigators named them first of what took so long Cecilia. Good evening Diane this suit is being called the most significant action taken so far against the executives at the center this housing bust. For so many people they are the symbol of everything that went wrong. -- so many more this is long overdue. No -- can escape the pain of the financial collapse and no American was ever held accountable until today. These six former executives at mortgage giants Fannie Mae and Freddie Mac were sued by the SEC. Accused of misstatements and half truths hiding just how many of those risky sub prime mortgages they were holding. In some cases by hundreds of billions of dollars. When the house of cards collapsed the pain rippled through the economy. Millions lost their homes and taxpayers had to come up with a 160 billion dollars to bail out Fannie and Freddie. Many families lost at all. I was collecting unemployment the unemployment just wasn't an office in just one year Daniel Mudd earned nearly eleven million dollars -- CEO of Fannie and Richard Syron earned more than eighteen million and CEO of Freddie. They put out statements today denying the charges the SEC's theory and approach are fatally flawed siren wrote. The six executives could face millions in fines but they do not face jail time only the Justice Department can bring criminal charges. We're getting a civil settlement and some money sloshing around. But not that real sense of justice and certainly not big knowledge -- that we feels a country we deserved to receive -- to hold individuals accountable for what they did. And Fannie and Freddie themselves are also off the hook the SEC agreed today it will not -- the mortgage giants. As for those criminal charges the Justice Department says it is still investigating Fannie Mae. Investigation into Freddie Mac is over no criminal charges ever filed.

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