Legal Commentary

Will the SEC Pursue Fannie and Freddie?

By Jonathan H. Adler

This could be interesting:

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. . . .

Over the past eight weeks, the SEC sent notices to the executives saying they may face civil charges. The SEC has not yet formally filed such charges and ultimately may choose not to.

Full post as published by The Volokh Conspiracy on March 18, 2011 (boomark / email).