in a statement, former fannie mae c.e.o. daniel mudd says he took the advice of auditors, regulators and even former s.e.c. lawyers. adding: "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, and i look forward to a court where fairness and reason--- not politics--- is the standard for justice." the s.e.c. case may hinge on definitions. to meet affordable housing goals set by congress, fannie mae created the expanded approval loan program to offer better financing to borrowers with limited downpayments or credit problems. freddie mac created a similar product named home possible. but attorneys for former freddie mac c.e.o. richard syron added: the s.e.c. has ignored the fact that the term subprime had no uniform definition in the market and that the federal government itself refused to define the term and bring clarity to the industry and the market. s.e.c. lawyers counter both fannie and freddie internally referred to many

michele locke here treasury secretary henry paulson tipped off prominent hedge funds regarding fannie mae while telling the u.s. senate and the general public a different story yes he was aiding and abetting the financial terrorist that goldman sachs but i want to roll back max to november sixteenth two thousand and eight in this appearance by you on al-jazeera and you know the the global financial system was collapsing and they asked you what was going on and you said it was hank paulson and goldman sachs and they had issued fraudulent currencies and bonds around the world here's a little clip who's a counterfeit money counterfeit bonds the best rather grab the guy lives in such a sad should the solution is well you have to go over you have to go into a kind of a court of law and take passive and goldman sachs for financial terrorism put them in jail maybe one response to hank paulson but as far as the international global economy is concerned well max ok that's fine for hank paulson but what about the global economy as if it was different somehow from hank paulson's fraud yeah that's wh

. >>> six former top executives with freddie mac and fannie mae charged today with civil fraud. securities and exchange commission says the executives misled the government and taxpayers about risky subprime mortgages and the company's held during the housing bust. at last night's gop presidential debate michele bachmann accused front-runner newt gingrich of being a washington lobbyist for accepting more than a million dollars from freddie mac. >> we can't have as our nominee for the republican party someone who continues to stand for freddie mac and fannie mae. they need to be shut down, not built up. >> what she just said is factually not true. i never rob bid under any circumstance. >> -- i never lobbied under any circumstance. >> those two own or guarantee about half of all u.s. mortgages. >>> it's called the grandma scam. how scammers get seniors to fall victim. >>> we shod you this teen stuck in a chimney. -- we showed you this teen stuck in a chimney. now see this rescue from the firefighters' point of view. >>> it's been so long, i can't remember what you look like. >> a

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 cri

bill: the future for fannie mae and freddie mac still unclear. here is a little bit of context on the recent troubles. fannie mae has reported losses in 16 of the last 17 quarters!. both fannie and freddie have used about the $168 billion from the u.s. treasury to cover losses related to bad loans made before the companies were seized. earlier this month, fannie mae said it would take $7.8 billion in u.s. government assistance after posting a major loss in the housing market. go figure that one out, huh? martha: a lot of taxpayer dollars to bail out those two organizations. i don't think that issue will go away. i think we'll hear more about it as the process progresses f you missed any of the debate last night you can watch some of the highlights on our website. foxnews.com. click on the headline on the homepage. that will take you to complete video coverage and clips last night and we'll show them to you here as well. bill: so they're always out there for you. also in a moment we continue to follow all the developments on the trail. candidates

williams, president and ceo of fannie mae. gentleman, thank you for being here.i ask you to limit your opening remarks to five minutes, but as well as your full testimony will be made a part of the record. mr. holderman. >> chairman, ranking member, and members of the subcommittee, thank you for inviting me to speak with you today. i'm ed, ceo of freddie mack, and i understand the importance of this hearing. living through the worse housing crisis since the great depression, i understand why this is so important. let me be clear. freddy mack is mindful of the taxpayer support we received, and we take very seriously our obligation to use this support prudently and efficiently. with this in mind, i will discuss with you how we're running the company under conservatorship. let me begin by saying that the freddie mack of today is a new company. we have a new management team. the management team running freddie mack today is not the one we had pre-conservatorship. for example, i became ceo in august 2009, almost a year after freddie mack entered conservatorship, and 1

he was doing things with fannie mae as early as 1991.on of few media types, dana, look, they said he was a bully that was in the "washington post". >> i want to give you the address of a double standard in media coverage here. >> what they face oftentimes creatures of washington get kid gloves when they leave. it's regardless of the party. it's frustrating to the people. because reporters know them and they like them and they go to the same parties they overlook things and give them the nice coverage that isn't going to destruct their friendship. >> one of the rules in politics is that you don't bash the press. barney frank bashed them all the time on phone calls. he called one up the other day and mentioned in a story he was jewish. report says this is a jew speaking and begins to rake on him. they loved nirm him anyway. >> he always called you back. he was one of those veterans the relationship with the press maertd. what we were reading was the 16 terms, that is what we were reading. a lot of wit and legislation, a lot of returned pho

for example, fhfa has laminated golden parachute determing fannie mae and freddie mac executives. in addition, fhfa has accepted recommendations to improve its effectiveness and efficiency and reduce vulnerability to fraud, waste and abuse. on the other hand, however, are reports of us identify deficiencies reflect and to significant unrelated emerging trends. first, fhfa often relied on determinations of the enterprises without independently testing and validating them. thereby giving undue deference to enterprise decision-making. second, fhfa's decisions about how it allocated its resources may have affected its ability to oversee the gse's. let me start with the first emerging trend. fhfa has not independently tested and validated enterprise decision-making. in brief, we believe fhfa has displayed undue deference to the enterprise in a number of areas through the agency's actions appear to reflect the purchase conservator to delegate most business decisions to the enterprise. in four of our our reports, we identified instances where agency relied upon review of corporate govern

executives atd fannie mae and freddie mac. they misled the government and taxpayers during the housing bust. dynamic duo. the line of defense against newt gingrich in a cue southern state may depend on a governor. this will moment be the moment for ron paul's popularity days before the caucuses. >> i think this wild goal to have another war in the name of defense is the dangerous thing. >> he was making millions of dollars in the nfl and in an hour, chicago bears player sam will face charges that he was one of the top drug dealers in the city. >> moving up the release date to the delight of fans. . >> hi, everyone. i'm tamron hall and we are following developing news. a dramatic hearing in the case of alleged sex abuse at state resumed after a brief recess. but it is the graphic and disturbing testimony from assistant coach mike mcqueary that burned into the minds of everyone that heard it. he took the stand to describe the incident that he said he saw former penn state coach jerry sandusky sexually assaulting a young boy in t

two former ceos of mortgage giants fannie mae and freddie mac were hit with accusations of fraud, by the s.e.c. fannie and freddie collapsed during the financial meltdown back in '08, leaving taxpayers with a staggering bill that grows larger by the day. nbc news senior investigative correspondent lisa myers has our report. >> reporter: three years ago the former ceos of fannie mae and freddie mac infuriated a congressional committee by denying any blame for the financial crisis. >> we thought we made the right decision at the time. >> you have exhibited no sense of accountability for your actions here, none. >> reporter: but today both former ceos, daniel mudd of fannie mae and richard syron of freddie mac were accused of civil fraud. the securities and exchange commission, or e.s.c., alleged that they and four other executives made false and misleading statements to conceal the extent of risky sub prime mortgages. >> today's action is about holding individuals accountable for their role in misleading the public. >> reporter: who got hurt here? a lot of hard-working americans saving

. >>> the scc charges former execs fannie mae and freddie mac with fraud. tonight, they join us live to discuss those charges. ges. >>> the federal government said that it will start pulling back on funding for medical research using chime pan. >>s. our closest -- chimpanzees. our closest relatives in the animal kingdom. who knew this was still going on and what are they being used for? [ female announcer ] more people are using wireless devices... in more ways than ever. and our networks are getting crowded. but if congress frees up more wireless spectrum... we can empower more people to innovate... putting momentum behind our economy. and we can reduce the deficit... with more than thirty billion dollars paid by america's wireless companies. it's simple -- more spectrum means more freedom. for everyone. >> the securities and exchange commission is suing the former top executives of fannie mae and freddie mac. they're accused of misleading inventors of the subprime mortgage loans. the director in scc's division of enforcement joins us to explain what this

as we told you, fannie mae and freddie mac were hot top nicks the fox news debate.ay, the former executive of the mortgage giant are in hot water. jim angle has more. >> the sikh i seek sec is charg- the sec is charging with mortgage fraud. take one of freddie mac annual report. >> they misrepresented to the public that the sub prime holdings were not significant. the company had $141 million of exposure. >> they demonstrated the fraud, tiny sliver represent the sub prime loan disclose and the rest of the pie shows how much actual exposure there was. >> that is 40 to 70 times greater than he told investors. >> today's action only involves charges for misleading investors. one analyst says it helped trigger the housing crisis from which the nation still suffers. >> i think if there had been full disclose sure required by the securities laws, we would not have had a financial crisis, because many people would have bailed from the market before it grew to be so large. >> because the information was withheld, the market was unaware of how many risky loans had been made

as for those criminal charges, the justice department says it is still investing fannie mae. the investigation into freddie mac is over. no criminal charges ever filed. diane? >> all right, abc's cecilia vega reporting in tonight. >>> and now, we turn to that bombshell testimony in the penn state sexual abuse case. for the first time, the star witness, the cornerstone of the prosecution, spoke out about what he says he actually saw in that locker room, and what he did next. here's abc's jim avila. >> reporter: he has fiery red hair and his story ignited a firestorm that brought down a college football icon, threatens the freedom of penn state's best known defensive coach and accuses two university officials of protecting the institution instead of children. penn state coach mike mcqueary on the stand today, sticking to the story that he told the university, "i saw jerry in the shower with a boy and it was extremely sexual in nature and over the lines and wrong." mike mcqueary is the only adult witness to that alleged sexual assault in the penn state football team showers. at

next up, former fannie mae and freddie mac executives accused of fraud.ho, where they grow america's favorite potoes. everyone knows idaho potatoes taste great. but did you know they'reood for you too? they're high in vitamins and potassium. and idaho potatoes are now certified to carry the heart checkmark from the american heart assoction for foods low in saturated fat and cholesterol. so they're good for my family, and for yours. heart smart idaho potatoes. always look for the grown in idaho seal. >>> today the sec charged sention former top executives of fannie and freddie with violation of the federal security laws. in its annual report for 2006, we allege that freddie mac misrepresented to the public that the sub prime holdings were not significant. the actual exposure was between $141 billion and $244 bel. that is about 40 to 70 times greater than what it told investors and the investing public. >> the security and exchange commission. the sec charging six former top executives of fannie mae and freddie mac of securities fraud accusing them of telli

fannie mae reporting they had, for example, $4.8 billion in 2007.he number was more like $43 billion. and freddie mac reporting $2 billion to $6 billion and they had $244 billion, so misleading investors, and this was a quasipublic company at the time but representing us, as well. >>shepard: what motivated this? >>gerri: money is a good motivation. look at the pay the s.e.c. will try to get back from these people. the fannie mae c.e.o. made $16 million as c.e.o. over the tenure. and another made $16.9 million. very impressive. and these guys were not just garden variety government lows, they had long resumes, very well-known in the industry. and it comes to this. >>shepard: just getting started. have a great week. part of the best in business from the fox business network. the willis report, weekend day afternoon 5:00 weekday afternoons and 4:00 in oxford on fox business network. a suitcase filled with radioactive material said to be headed for iran before customs officials in russia stopped it in its past. an iranian passenger was attempting to tak

overseeing the regulation of fannie mae, freddie mac, and the federal home loan banks. ida have looked forward to hearing the testimony today from the inspector general about the status of fannie mae and freddie mac and the housing agency as well as how he plans to carry out his duties. i am interested in hearing how his office can help the fhfa oversees the conservatorship of fannie and freddie. unfortunately, before mr. linick was confirmed, the seat of the inspector general was vacant for two years. during that time, fannie and freddie were placed into conservatorship, and taxpayers began to pay for their losses. so far, fannie and freddie have caused over $183 billion and counting. despite financial problems, their dominant role in the housing market persists as they back 71% of new mortgage-backed securities. mr. linick has a lot of important work to catch up on. first and foremost, i believe he must provide oversight of the federal housing finance agency's conservatorship of fannie and freddie to insure that taxpayer dollars are spent wisely. the office of the ins

demarco feels that people who are spent -- are trying to -- are working in fannie mae and freddie mac deserve $900,000 and millions of dollars in bonuses. after all, they're doing such a great job. the alaskan native corporations is one of my favorites. we need to be especially mindful of how taxpayers' dollars are appropriated. the army corps in light of a recent justice department investigation revealed what prosecutors called one of the largest bribery scandals in u.s. history involving army corps contracting officials and the contracting director of technology and a & c owned company. in the authorization bill, we are trying to have all of this small business funding issue, no matter whether it be a.n.c. or others looked at. of course we won't be able to look at the solyndra issue. private investors will collect the first $69 million that can be recovered from the company, taxpayers placed in second position by the department of energy. if -- if we had been able to amend this bill, i would have worked with my colleague, dr. coburn, restore much-needed funding to the government acc

. >>> it of >>> fannie mae and freddie mac in big trouble again.s time the securities and exchange commission is charging the modern giant's former top executives with fraud. reporter: the sec is charging six former top executives of fannie mae and freddie mac with securities fraud accusing them of knowingly misleading invests about how many high risk loans they held which in many ways led to the current housing crisis. take, for instance, one of freddie mac's annual reports. >> freddie mac misrepresented to the public that its subprime holdings were not significant. in fact, the company had $141 billion of subprime exposure. reporter: the sec used charts to demonstrate the fraud. the rest of the pie shows how much actual exposure there was. >> that's about 40 to 70 times greater than what it told its investors and the investing public. reporter: though today's action only involves charges for misleading investors, one analyst said it was the fiction those executives maintained that helped trigger the housing crisis from which the nation still suff

fannie mae and freddie mac were bailed out by the government in 2008. they are seen as having encouraged the bubble that triggered the start of the finances -- financial crisis. american soldier charged with supplying wikileaks with reports has appeared in a court. private bradley manning was arrested last year. >> bradley manning, and a visit from a small evangelical town, and on -- unhappy missed it, he exposed america's secret. to some he is being martyred for revealing the truth. to others, he is a traitor. this is the first time he has been seen in public. a slight figure, flanked by his lawyers. he said, yes, sir, to a couple of questions. it was the man in charge who faced cross-examination. a judge, now a prosecutor, and he told him his case would be that his actions were not serious. where is the damage, he said. supporters say he did the right thing. >> to me he is a hero. he should be given a medal of honor. we should continue to bring about a transformation of our government where secrecy is not over used. >> this was his first week, a video

even though she was going after the former speaker in regards to the freddie mac and fannie mae issuehere from congresswoman bachmann when it comes to the issue. you saw how the former speaker took it. he sidestepped it, saying listen, factually this is not true and she has a tendency to get some of her facts wrong and she's looking hypocritical herself. >> newt gingrich has been rising in the polls. however as of late, maybe within the past week or two, we're seeing that the distance between he and romney and paul has been th shrinking a tad bit. is it his display of confidence or his toned down confidence in recent days? is that behind that? >> you know, i mean, i got to be honest, i don't think newt gingrich is that likable. i think initially because the fact he is so smart, because he is so aggressive and charismatic and does most certainly believe in himself and his abilities, if you're not paying that close attention, you know, he looks pretty interesting, looks pretty good. the more and more you watch gingrich, the more and more you start to see things you don't like. he's kind

he was doing things with fannie mae as early as 1991.tion of few media types, dana, look, they said he was a bully that was in the "washington post". >> i want to give you the address of a double standard in media coverage here. >> what they face oftentimes creatures of washington get kid gloves when they leave. it's regardless of the party. it's frustrating to the people. because reporters know them and they like them and they go to the same parties they overlook things and give them the nice coverage that isn't going to destruct their friendship. >> one of the rules in politics is that you don't bash the press. barney frank bashed them all the time on phone calls. he called one up the other day and mentioned in a story he was jewish. report says this is a jew speaking and begins to rake on him. they loved nirm him anyway. >> he always called you back. he was one of those veterans the relationship with the press maertd. what we were reading was the 16 terms, that is what we were reading. a lot of wit and legislation, a lot of returned p

harris has been investigating freddie mac and fannie mae's have in 12,000 foreclosed props in the statehere the companies were acting as landlords. suits ask them to respond to more than 50 subpoenas that demand the companies identify homes they foreclosed on. freddie mac and fan any representatives say they -- fannie mae represents say they don't comment on active lawsuits. >>> why the simple smooch was the first for a woman in uniform. >>> protecting passengers from pilots. new government rules meant to keep everyone's eyes open in the skies. >>> a family's holiday travel plans are grounds. why they say the size of their family had them kicked off the plane. honey...? [ mom ] yes. honey, i can't find my internet cord. oh, i'll borrow hailey's. you're downloading movies. fast! from here? where is her cord?! we switched to at&t high speed internet and got wireless access. no more cords. wireless, okay, honestly, can i just get a cord, please? dad, the cord's invisible. [ female announcer ] call at&t today to get high speed internet for just $14.95 a month for 12 months with a 1-year pri

harris has been investigating freddie mac and fannie mae's have in 12,000 foreclosed props in the state where the companies were acting as landlords. suits ask them to respond to more than 50 subpoenas that demand the companies identify homes they foreclosed on. freddie mac and fan any representatives say they -- fannie mae represents say they don't comment on active lawsuits. >>> why the simple smooch was the first for a woman in uniform. >>> protecting passengers from pilots. new government rules meant to keep everyone's eyes open in the skies. >>> a family's holiday travel plans are grounds. why they say the size of their family had >>> the faa issued tough new rules today aimed at pilot safety. designed to keep pilots from flying while dangerously fatigued. three years after the deadly crash of a plane flown by two exhausted pilots. >> reporter: transportation secretary lahood says these new rules will require more rest for pilots and therefore, more safety for passengers. these new rules have been consideration for many years. a deadly crash three years ago finally provided the imp

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.