SEC Ends Lawsuit Against Ex-Fannie Chief

The U.S. Securities and Exchange Commission's (SEC) has quietly resolved its five-year-old litigation that charged former Fannie Mae CEO Daniel Mudd with misleading investors on the quality of the government-sponsored enterprise’s risk exposure in the years prior to the 2008 crash.

In a Reuters report that cited court papers filed yesterday, Fannie Mae will contribute $100,000 on Mudd's behalf to a Treasury Department account set up to accept financial gifts to the federal government. Mudd is not required to admit wrongdoing as part of the settlement, which was not publicly announced by either the SEC or Fannie Mae.

"I appreciate Fannie Mae and the current leadership of the SEC stepping in to end a case that should have never been brought," said Mudd to a Reuters reporter.

Mudd, who was forced from his job when Fannie Mae went into federal conservatorship eight years ago, was among six Fannie Mae and Freddie Mac executives sued by the SEC in the aftermath of the financial crisis. He was also the last of the six to settle his case. Had the settlement not been reached, the case would have gone to trial in November.