The SEC is suing the former CEOs of Fannie Mae and Freddie Mac for misrepresenting the percentages of those firms investment portfolios that were held in sub-prime loans. While Daniel Mudd and Richard Syron are being named individually, the firms will have to indemnify them, which is to say defend them with taxpayer money, until and unless they are convicted of a criminal act. Other Fannie and Freddie former executives are also likely to be named as targets of SEC enforcement actions. Now if they could only name Barney Frank and Chris “Countrywide” Dodd…
