SEC settles with two ex-Fannie Mae execs

New York

THE US Securities and Exchange Commission (SEC) has reached a settlement with two former Fannie Mae executives in one of its biggest lawsuits tied to the global financial crisis, but has yet to settle with former chief executive Daniel Mudd.

Former chief risk officer Enrico Dallavecchia and former executive vice-president Thomas Lund will pay US$25,000 and US$10,000 respectively to settle charges that they helped conceal Fannie Mae's exposure to more than US$100 billion of subprime and US$341 billion of low-documentation "Alt-A" home loans.