Daniel Mudd, the CEO of Fortress Investment Group, has stepped down to focus on outside matters - namely the complaint US regulator the Securities and Exchange Commission filed last week, which accused him (and others) of securities fraud while he was top dog over at Fannie Mae.
Here's what Fortress said:
'Fortress Investment Group today announced that Daniel Mudd is taking a leave of absence from his role as Chief Executive Officer of the company and member of its Board of Directors. Randal A. Nardone, Fortress principal and co-founder, will serve as interim chief executive officer, effective immediately.
'I have requested a leave of absence from my position as chief executive officer 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', said Mudd.
'We are grateful to Dan for his service and leadership over the past two and a half years and support his decision to take a leave of absence at this point in time', said Nardone. 'Fortress is very well-positioned today, and across our company, we remain single-mindedly focused on managing our investment funds and capitalizing on opportunities to create value for our investors. We look forward to Dan’s return in the hope that matters are resolved favorably and expeditiously'.
Nardone is a co-founder and principal of Fortress and has been a member of the Board of Directors of Fortress Investment Group LLC since November 2006. He has been a member of the Management Committee of Fortress since 1998. Prior to co-founding Fortress in 1998, Nardone was a managing director of UBS fromMay 1997 to May 1998. Before joining UBS, Nardone was a principal of BlackRock Financial Management, Inc. Prior to joining BlackRock, Nardone was a partner and a member of the executive committee at the law firm of Thacher Proffitt & Wood'.