Insiders say former Fannie Mae CEO Daniel Mudd agreed to give up his post-GSE job at Fortress Investment Group in January to fight allegations levied against him by the Securities and Exchange Commission, Bloomberg news said.

The publication cited anonymous sources who revisited Mudd’s exit at Fortess Investment, the firm where Mudd landed after leaving Fannie. The sources claim Fortress offered to let Mudd keep his role if he settled with the SEC quickly. But Mudd opted to leave instead so he could devote his full attention to the case. 

The SEC accused Mudd of misleading mortgage investors about Fannie’s exposure to subprime loans.

Click here to read the full article in Bloomberg. 

— Kerri Panchuk