Investors Sue Ex-Fannie Mae Execs

9 09 2008

Four former senior executives at Fannie Mae have been sued by investors in the troubled mortgage firm.

The investors claim Stephen Ashley, Daniel Mudd, Robert Levin and Steven Swad lied about the firm’s finances, artificially inflating its share price.

The move came after the US government took over the firm, ousting Mr Ashley, Mr Mudd and Mr Levin from their jobs.

Fellow lender Freddie Mac was also bailed out in a move that could cost the US taxpayer $200bn (£113bn).

The class action says the four had been “motivated to misrepresent Fannie Mae’s financial condition by their generous compensation packages”.


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