Sun, Apr 20, 2014
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   |   
Banner
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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo