The news at a glance

Financial crisis: Ex-Fannie, Freddie execs sued; Telecom: AT&T drops T-Mobile merger plans; Euro debt: European investors flee the euro zone; Mobile: Apple wins patent victory over Android; Housing: A new wave of foreclosures ahead

Financial crisis: Ex-Fannie, Freddie execs sued

Six former Fannie Mae and Freddie Mac executives have been charged with fraud for misleading the public about the companies’ exposure to subprime loans, said David S. Hilzenrath and Zachary A. Goldfarb in The Washington Post. The former executives, who are accused of willfully “concealing the amount of risky mortgages” on the books of the home-loan-financing giants, are the “most prominent individuals” to date to be charged with wrongdoing related to the U.S. mortgage meltdown. The Securities and Exchange Commission alleges that in 2007, Fannie Mae “disclosed less than one tenth” of its exposure to subprime loans, which “robbed investors of the chance to make informed decisions.”

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More