Saturday, April 10, 2010

Ex - Fannie CEO Apologizes, Blames Business Model

NY Times:

WASHINGTON (Reuters) - The former chief of Fannie Mae, the top U.S. mortgage finance company whose purchase of risky home loans led to a massive government bailout, on Friday apologized for the company's failings and shouldered the blame.

But even as Daniel Mudd, who was ousted as chief executive when government regulators seized Fannie Mae in September 2008, accepted responsibility, he said the company's business model created an unmanageable situation.

"I was the CEO of the company and I accept responsibility for everything that happened on my watch," Mudd said at a hearing before a congressional investigative panel assigned to probe the origins of the 2007-2009 financial crisis.

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