Tue, Dec 1, 2015
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: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From PIonline.com: Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Commodities - Stung by oil, distressed-debt traders see worst losses since '08[more]

    From Bloomberg.com: It’s mid-November, but for investors who trade in the debt of distressed companies, the year’s already done -- and they lost. Hedge funds that specialize in the debt are grappling with their worst declines in seven years. Funds managed by Knighthead Capital Management, Candlewood

  4. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  5. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega