Ex-Fannie Mae CEO May Face Subprime Probe

Law360, New York (March 11, 2011, 10:38 PM EST) -- Fortress Investment Group LLC CEO Daniel H. Mudd may be facing civil action from securities regulators for allegedly misleading investors about Fannie Mae's subprime holdings when he headed the government-sponsored enterprise.

Mudd received a Wells notice from the U.S. Securities and Exchange Commission related to his tenure at Fannie, a source close to the investigation confirmed Friday. The source declined to be named because he is not authorized to speak on the record.

Mudd, who could not be immediately reached for comment Friday, intends to rebut...
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