In one of the U.S. Securities and Exchange Commission's biggest cases tied to the 2008 financial crisis, former Fannie Mae Chief Executive Daniel Mudd has reached a settlement with regulators, Reuters reported yesterday. The deal with the SEC, detailed in papers filed in Manhattan federal court, resolves a 2011 lawsuit accusing Mudd of misleading investors about Fannie's exposure to risky mortgages before the crisis. Mudd had denied wrongdoing and he did not admit any in yesterday’s agreement. The deal concludes one of the SEC's few remaining cases tied to the housing downturn. Mudd was one of six executives at mortgage funding giants Fannie Mae and Freddie Mac sued by the SEC. The prosecutions were announced at a press conference in December 2011 but they ended in modest settlements over the following years.
