Subprime fall-out Almost four months ago Daniel Mudd, chief executive of Fannie Mae, appeared on US television casting the government-backed mortgage lender in the role of “a saviour” by suggesting that it be allowed to expand its lending in the unfolding subprime mortgage crisis.
At the time, the regulator of Fannie and rival Freddie Mac – the Office of Federal Housing Enterprise Oversight – said neither “government-sponsored entity” was financially healthy enough to do so.
