The SEC filed a civil fraud lawsuit Friday against six former top executives at Fannie Mae and Freddie Mac, saying they misled investors about the subprime-loan risks they faced.
Under the SEC deal, which allows Citigroup to avoid admitting wrongdoing in the sale of risky assets to investors, 'the public is deprived of ever knowing the truth,’ a US judge says.
Insider trading charge brought against Rajat Gupta, a former Goldman Sachs board member.
Countrywide CEO Angelo Mozilo has agreed to a $67.5 million settlement to avoid trial on fraud and insider trading charges that alleged he profited from risky mortgages he signed off on before the collapse of the housing market.
Goldman Sachs settled its SEC suit for a record amount Thursday. The settlement may be just the beginning of a broader SEC campaign against alleged Wall Street abuses.
Raj Rajaratnam, who was arrested Friday for insider trading in the US, is also linked to a money-transfer case in Sri Lanka.