Former Freddie Mac Execs: SEC Is Making Us Scapegoats

Posted by Orb Staff on May 02, 2012 No Comments
Categories : Residential Mortgage

11457_goat Former Freddie Mac Execs: SEC Is Making Us Scapegoats Three former executives of Freddie Mac accused the U.S. Securities and Exchange Commission (SEC) of trying to make them scapegoats for the housing crisis and have called for the dismissal of the agency's fraud lawsuit against them.

According to a Reuters report, the defendants – former CEO Richard Syron, former Chief Business Officer Patricia Cook and former Senior Vice President Donald Bisenius – called the SEC's charges ‘misguided’ and ‘implausible’ and called the agency to task for its work in the period leading up to the 2008 economic crash.

‘This is an ill-conceived attempt to cast blame on defendants for losses that resulted from an unprecedented deterioration in the housing market that virtually no one expected – including the commission and other federal regulators,’ the defendants said in a filing in the U.S. District Court in Manhattan. ‘In an effort to scapegoat defendants, the complaint mischaracterizes statements about the company's so-called 'subprime' holdings, alleging they were fraudulent when they were neither false nor misleading.’

The SEC did not publicly comment on the defendants' charges.

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