Freddie Mac Execs Reach Atypical Deal with SEC
The Securities and Exchange Commission and erstwhile Freddie Mac executives made a rare deal in the former's case against the mortgage behemoth and agreed that "no party is the prevailing party." The unusual conclusion of a high-profile case resulted in muted penalties against Freddie, which will have to pay investors but will not face any notable fines.
The SEC's Andrew Ceresney said that "the settlement’s limitations on future activities and financial payments reflect an appropriate resolution of the matter" of Freddie's role in the subprime loan crisis. But it surely comes as a disappointment to regulators, which set out on the case saying "all individuals, regardless of their rank or position, will be held accountable for perpetuating half-truths or misrepresentations.”
