the securities and exchange commission charged six former fannie mae c.e.o. daniel mudd and freddie mac c.e.o. richard syron the collapse of fannie mae and freddie mac is projected to cost taxpayers $124 billion. are fighting the charges, which syron's attorney calls quote, "fatally flawed." >> reporter: s.e.c. lawyers say, around the time the housing bubble peaked, fannie mae and freddie mac executives used misleading definitions of subprime loans to hide the truth from investors. >> as they were driving up their market share, fannie mae, freddie mac and the executives sought to maintain the illusion that the business involved minimal and manageable credit risk. >> reporter: the sec says former fannie mae c.e.o. daniel mudd and former freddie mac c.e.o. richard syron and four other top executives committed securities fraud, hiding risks that eventually brought down the mortgage giants. the case sites freddie mac's june 2008 disclosure showing the company held $6 billion in subprime loans. the s.e.c. claims the figure should have been $244 billion. fannie mae told invest

c.e.o. of fannie mae, daniel mudd, and the former chairman and c.e.o. of freddie mac, richard syron. >> woodruff: together, mudd and syron-- seen here at a congressional hearing in 2008-- are the highest-profile individuals to be accused in the financial crisis. the other four executives named fannie and freddie own or guarantee about half of all u.s. home mortgages. but the housing meltdown brought them to the brink of collapse, and the government seized control of both in september of 2008. since then, the federal government has lent the firms more than $150 billion, the largest bailout of the financial crisis. mudd was fired from fannie after the federal takeover, and today, he insisted the lawsuit should never have been brought. he said: "every piece of material data about loans held by fannie mae was known to the united states government and to the investing public. the s.e.c. is wrong." fannie and freddie entered agreements with the government today accepting responsibility for their conduct without admitting or denying the allegations. federal cr

c.e.o. of freddie mac and daniel mudd former chief of fannie mae committed fraud, misleading investors on the risks they were taking in subprime mortgages and down playing the hundreds of billions put at risk, all of it backed by taxpayer guarantees. robert khuzami is the chief of enforcements at the s.e.c.. >> fanny, freddie and their executives sought to maintain the illusion that the business involved minimal and manageable credit risk. >> reporter: for example, in 2007 with fanny aggressively buying subprime loans and with congress concerned about taxpayer losses, the s.e.c. says mudd gave the house a low ball figure he knew was fault. >> as a result, our exposure was minimal, less than 2.5% of our book. >> reporter: s.e.c. documents say fannie's exposure was higher by tens of billions and closer to 5%. one year later in 2008 the s.e.c. says the hidden risk was enormous, that freddie held almost $250 billion in subprime but disclosed six billion. fannie held around $110 billion in subprime but disclosed eight. both former c.e.o.s said in statements they never misled congress or investors.

daniel mudd and richard syron are the two highest ranking officials yet to be charged for their involvement in the housing met down. m.d. is -- mudd is the former c.e.o. of fannie maewo are alleged to down play their exposure to the risky subprime mortgage loans. america's most inspirational figures cat up in a big scam. former notre dame player has settle add lawsuit with the s.e.c. after being charged with securities fraud. he is accused of swindling investors in an energy drink he wanted to promote against gatorade and not admitting get he will pay $400,000. >> that is probably what you had this morning. i am not sure if it is working. rick: ali and i had gatorade. take note. another nice day and week across the east coast, the 7th in a row where no real rain across the east. nice. cooler, again, and santa ana winds in southern california and the fire sleet with us again today and better tomorrow, but the next storm is moving across the southwest. tell me about the weather in your place on twitter. temperatures are cooler in the north but no one is dealing with a cold out break at all which is good and we have snow flying around the great lakes, today, and only