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Washington Roundup

SEC charges former Fannie and Freddie executives
The Securities and Exchange Commission filed civil fraud charges against several former executives at Fannie Mae and Freddie Mac. "At its core, today’s action is about holding individuals accountable for their role in misleading the public about their companies’ subprime exposure," said Robert Khuzami, enforcement chief at the SEC. "First and foremost it is the responsibility of company executives to provide full, complete and accurate disclosure of its operations." Financial Times (tiered subscription model)(12/18), The New York Times (tiered subscription model)/DealBook blog(12/16), The Washington Post(12/16), Los Angeles Times(12/17)

SEC and SIPC prepare to battle over Stanford case
The Securities and Exchange Commission and the Securities Investor Protection Corp. are preparing to present their arguments in court over the alleged Ponzi scheme run by R. Allen Stanford. SIFMA supports SIPC's position on this issue. SIFMA has said that covering the Stanford losses would be "an unprecedented expansion of SIPC protection to investment fraud losses." InvestmentNews (free registration)(12/18)

Basel Committee rejects use of consolidation method
The Basel Committee on Banking Supervision said it would not allow banks to increase their capital using the consolidation method, an alternative way to calculate capital. Financial Times (tiered subscription model)(12/16)

• Other News

SEC faces challenges, but Schapiro defends record
InvestmentNews (free registration) (12/18)

Ketchum might be making headway on expanding FINRA's authority
InvestmentNews (free registration) (12/18)