Wed, Apr 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund firm Fortress offers proposal for rented homes despite action against Mudd

Wednesday, December 28, 2011

Daniel Mudd
Opalesque Industry Update - Fortress Investment Group LLC was among over 400 financial firms which provided advisory proposals to federal housing authorities about how to handle renting out homes that have been foreclosed. The Federal Housing Finance Agency asked firms for ideas as it tries to stabilize neighborhoods and recoup losses in the wake of the national housing crisis.

The proposal from Fortress in notable as the firm’s chief executive officer, Daniel Mudd recently took a leave of absence after being sued by the SEC over his role as CEO Of Fannie Mae from 2005 to 2008. Fannie Mae and Freddie Mac issued subprime mortgages to individuals and played a significant role in the housing bubble that led to the crash. Fannie Mae and Freddie Mac were also seized by the federal government in 2008 to become part of the new Federal Housing Finance Agency.

Mudd stands accused of understanding the subprime loans held by Fannie Mae during his tenure. The SEC alleges that Mudd's figures were off by hundreds of billions of dollars. The complaint comes against Mudd and six other officials involved with Fannie Mae and Freddie Mac during the period just before the housing bubble burst in 2008.

Mudd contends that the government and investors were aware of the full extend of the loans held by Fannie Mae during his tenure.

Fortress has offered no comment other than the proposal submitted by the firm has nothing to do with Mudd, nor the complaint against him. Mudd received a Wells Notice from the SEC advising him that he was subject to a civil suit in May. Proposals were due to the Federal Housing Finance Agency by September 15, 2011.

Bailey McCann

See last week's press release: Fortress CEO Daniel Mudd to take leave of absence, Randal Nardone appointed interim CEO: Source

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner