On Dec. 16, 2011, the SEC charged three former top executives of the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud. The SEC alleged that the executives “knew and approved of misleading statements claiming the companies had minimal holdings of higher-risk mortgage loans, including subprime loans.” Yesterday, however, the SEC’s case against the Freddie Mac executives fizzled out in an unusual settlement in which the agency and the three executives agreed that “no party is the prevailing party.”
