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The Securities and Exchange Commission capped a three-year investigation into Fannie Mae and Freddie Mac on Friday, filing securities fraud charges against six former executives at the government-sponsored mortgage giants. The SEC claims that the execs failed to disclose the full extent of their companies' subprime loan exposure. However, the outcome of the cases could depend on what exactly is considered a subprime loan, with one defendant already arguing that there's no standard definition.
December 20, 2011 at 12:00 AM
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