A former chief executive of Fannie Mae urged a federal judge to throw out a U.S. Securities and Exchange Commission fraud lawsuit accusing him of misleading investors about the company's exposure to risky mortgages.
Lawyers for Daniel Mudd and two co-defendants said the mortgage finance company had explicitly and accurately disclosed its exposure to subprime and so-called "Alt-A" home loans before the government seized the company.
"We respectfully request that the court dismiss this misguided complaint with prejudice," the filing said.
The agency sued the former Fannie Mae executives -- Mudd, Chief Risk Officer Enrico Dallavecchia and Executive Vice President Thomas Lund -- on Dec. 16 after a three-year probe.
Read the Reuters report.