Former Fannie Mae CEO Mudd steps down at Fortress
Daniel Mudd resigned from his post as CEO of Fortress Investment Group (FIG), just a month after he took a leave of absence in light of a Securities and Exchange Commission lawsuit. The SEC fraud allegations stem from Mudd's time as CEO at Fannie Mae. The lawsuit alleges that Mudd and other high-level executives knew and approved of misleading statements claiming Fannie and Freddie Mac had minimal holdings of higher-risk mortgages, including subprime loans. Two other former officers of Fannie and three past executives of Freddie Mac are also named in the charges. Mudd took his leave just five days after the SEC filed its suit. Randal Nardone, Fortress principal and co-founder, will continue to serve as interim CEO. The company announced Mudd's resignation late Tuesday. "I do not want the uncertainty associated with a leave of absence, on my part, to become a distraction for either Fortress or its investors," Mudd said in a company release. Mudd served as Fannie CEO from June 2005 until he was removed in September 2008, when the Federal Housing Finance Agency placed the mortgage giant into conservatorship. Fortress held $43.6 billion in assets as of Sept. 30. The investment manager is also parent of Nationstar Mortgage, which revived its IPO earlier this week. Write to Andrew Scoggin. Follow him on Twitter @AScoggin.