For discussion this week in 2302, some recent federal executive activity. From the Washington Post:
The Securities and Exchange Commission is moving toward charging former and current Fannie Mae and Freddie Mac executives with violations related to the financial crisis, setting up a clash with the housing regulator that oversees the companies, according to sources familiar with the matter.
The SEC, responsible for enforcing securities laws, is alleging that at least four senior executives failed to provide necessary information to investors about the companies’ mortgage holdings as the U.S. housing market collapsed.
But the agency that most closely regulates Fannie and Freddie, the Federal Housing Finance Agency, disagrees with that assessment, according to sources familiar with the matter.
FHFA officials think Fannie and Freddie’s financial disclosures, which agency staff members had reviewed before the documents were released to the public, were sufficient, the sources said. One source added that FHFA has sent a letter to the SEC opposing the filing of charges.
An FHFA spokesman declined to comment.
This is mighty complex. Essentially, one federal regulatory agency charged with investigating securities fraud wants to charge two government sponsored enterprises for activities related to the recent financial crisis, while a fourth agency that oversees those enterprises, wants to protect them from those charges. This is the latest in the housing crisis saga.
More on the story:
- David Indiviglio I.
- David Indiviglio II.
- Life after Fannie and Freddie
Here are the players:
- Securities and Exchange Commission.
- Federal Housing Finance Agency.
- Fannie Mae.
- Freddie Mac.
