Fannie, Freddie Probe Focuses on Disclosure
The Securities and Exchange Commission has notified several former Fannie Mae and Freddie Mac officials that it will recommend civil enforcement actions for their roles in corporate misconduct leading up to the financial meltdown.

The probe is focusing on disclosures by the firms regarding subprime loan exposure, which critics say was played down. It remains to be seen whether the companies themselves will be included in the enforcement action, given that U.S. taxpayers will bear the burden of any charges.

Source: “Fannie, Freddie Probe Focuses on Disclosure,” The Wall Street Journal, Nick Timiraos and Jean Eaglesham (03/14/11)