A former CEO and two former top executives at mortgage giant Freddie Mac have settled a government lawsuit. They were accused of understating the amounts of high-risk mortgages that Freddie held just before the housing bubble burst in 2007.
The Securities and Exchange Commission announced the settlement late Tuesday with former Freddie CEO Richard Syron; Patricia Cook, an executive vice president and chief business officer; and Donald Bisenius, a senior vice president.
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They agreed to donations to a fund for Freddie investors of $250,000 for Syron, $50,000 for Cook and $10,000 for Bisenius.
The government rescued Freddie and larger sibling Fannie Mae in 2008 as they neared collapse after incurring massive losses on risky mortgages. Taxpayers spent about $187 billion to rescue the two companies, including $71 billion for Freddie.