Daniel Mudd

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Daniel H. Mudd (born 1956) is the former President and CEO of Fannie Mae, a post he held from 2005-2008,[1] and, more recently for 2-1/2 years, the CEO of Fortress Investment Group. He was charged in December, 2011, with securities fraud by the SEC for his actions at Fannie Mae and took a leave of absence from Fortress. On January 24, 2012, Fortress Investment Group announced that Daniel Mudd has resigned from the company and its Board of Directors.

Education and early career[edit]

Mudd holds a B.A. degree in American history from the University of Virginia and an M.P.A. from the John F. Kennedy School of Government at Harvard University.[2] Mudd was an Officer in the United States Marine Corps and was decorated for his combat service in Beirut.[2] After a tour in the Office of the Secretary of Defense, he left the service to get his M.P.A.[2]

Mudd has been an advisor to Asia-Pacific Economic Cooperation (APEC) and has served on boards of the Council on Foreign Relations, the National Building Museum, Hampton University, Local Initiatives Support Corporation The University of Virginia board of Trustees, and the Sidwell Friends School.[2]

Early in his career, Mudd held positions in financial services and management consulting at the World Bank, Ayers Whitmore and Company, and Xerox Corporation.[3] Mudd later worked at GE Capital in International Financing, European Fleet Services, and Business Development.[3] At GE Capital, he became Vice President for Business Development in 1991, was Managing Director for International Financing from 1993 to 1995, and became President and CEO for European Fleet Services in 1995.[2] From 1996 to 1999, he was president of GE Capital Asia-Pacific.[2][3] Mudd was previously president and CEO of GE Capital, Japan before he joined Fannie Mae in February 2000.[3]

Fannie Mae[edit]

In February 2000, Mudd became a Director and Vice Chairman and Chief Operating Officer at Fannie Mae.[2][4] He remained Chief Operating Officer until December 21, 2004.[2] Mudd was named interim CEO of Fannie Mae in December 2004, after Franklin Raines stepped down after the U.S. Securities and Exchange Commission (SEC) found Fannie Mae had violated accounting rules.[4] Mudd served as interim CEO of Fannie Mae until March 2005, and became the President and CEO of Fannie Mae on June 1, 2005.[2]

Mudd collected more than $80 million in his time at Fannie Mae.[5] He was dismissed as CEO when FHFA stepped in as conservator on September 7, 2008. The government has advised him that his severance package will not be paid.[6]

On December 9, 2008, he testified before the United States House Committee on Oversight and Government Reform on Capitol Hill regarding Fannie Mae, Freddie Mac, and financial market instability.[7][8][9]

In December, 2011, Mudd and other Fannie Mae and Freddie Mac executives were charged by the U.S. Securities and Exchange Commission with securities fraud. "The SEC alleges they 'knew and approved of' misleading statements claiming the companies had minimal exposure to subprime loans at the height of home mortgage bubble."[10]

Mudd was a Director at Ryder System, Inc from 2002 to 2007.[2] In 2007, Mudd became a Director at Fortress Investment Group.[2] Forbes ranked Mudd 182nd in executive pay in 2005, 323rd in 2006, 337th in 2007, and 202nd in 2008.[11]

Subsequent career[edit]

Mudd for 2-1/2 years to December, 2011,[12] was the CEO of Fortress, a hedge fund in New York City that has among other investments bought tax liens on delinquent property taxes from local governments under 17 different corporate names. Some of the 17 evoke tranquil, bucolic settings, such as Pleasant Valley Capital, LLC and Travis Farm Investments, LLC.[13] In the wake of the FNMA-related charges in 2011, Mudd took a leave of absence "to ensure that any time or attention I need to focus on matters outside of Fortress will not affect the business or operations of the company”. It was not revealed whether it was a paid leave. At the time it was reported he had received a salary of $200,000 and a bonus of $3 million in 2010 and been given restricted stock valued at $24 million when he joined the company. "The SEC said Mudd’s misconduct included knowingly giving false testimony to Congress", a report continued, while Mudd said "the government approved Fannie Mae’s disclosures during his tenure".[12]

Personal life[edit]

Mudd now resides in Greenwich, Connecticut with his family.[citation needed]

He is the son of former TV anchor Roger Mudd.[14] His family is indirectly related to Samuel Mudd, the doctor who was imprisoned for aiding and conspiring with John Wilkes Booth after the assassination of Abraham Lincoln.[15]

References[edit]

  1. ^ US Bails out Fannie Mae & Freddie Mac NYTimes
  2. ^ a b c d e f g h i j k "Daniel Mudd: Executive Profile & Biography". investing.businessweek.com. BusinessWeek. Retrieved December 9, 2008. 
  3. ^ a b c d "Daniel H. Mudd Profile". people.forbes.com. Forbes.com LLC. Retrieved December 9, 2008. 
  4. ^ a b "Franklin Raines out at Fannie". CNNMoney.com. December 22, 2004. Retrieved December 9, 2008. 
  5. ^ Duhigg, Charles (October 4, 2008). "Pressured to Take Risks, Fannie Hit a Tipping Point". The New York Times. 
  6. ^ "U.S. cuts wires on Fannie, Freddie 'golden parachutes'". Chicago Tribune. 
  7. ^ "Committee Holds Hearing on Collapse of Fannie Mae and Freddie Mac". oversight.house.gov. December 9, 2008. Retrieved December 9, 2008. [dead link]
  8. ^ "Testimony of Daniel Mudd (PDF)". oversight.house.gov. Retrieved December 9, 2008. [dead link]
  9. ^ Alan Zibel (December 9, 2008). "Former Fannie, Freddie Execs to Testify". Associated Press. Time. Retrieved December 9, 2008. 
  10. ^ Andrejczak, Matt, "SEC charges 6 ex-Fannie, Freddie execs with fraud", MarketWatch, December 16, 2011 10:37 am EST. Retrieved 2011-12-16.
  11. ^ "Daniel H. Mudd Rankings". people.forbes.com. Forbes.com LLC. Archived from the original on July 22, 2011. Retrieved December 9, 2008. 
  12. ^ a b Hilzenrath, David S., "Former Fannie Mae CEO Mudd takes leave from hedge fund firm", Washington Post, December 21, 2011. Retrieved 2011-12-21.
  13. ^ Fred Schulte and Ben Protess (October 18, 2010). "The New Tax Man: Big Banks and Hedge Funds". Huffington Post Investigative Fund. Retrieved September 20, 2011. 
  14. ^ Government may soon back troubled mortgage giants
  15. ^ Goldstein, Richard (2002-05-25), "Dr. Richard Mudd, 101, Dies; Grandfather Treated Booth (limited no-charge access)", The New York Times, retrieved 2009-05-23 

External links[edit]