As it turns out, there were several internal risk officers who warned the top executives that they were becoming dangerously overexposed to risky subprime and Alt-A loans. This was the conclusion of an extraordinary hearing that featured former CEOs of Fannie Mae and Freddie Mac, who did not tell their congressional questioners what they wanted to hear. According to the New York Times, one representative vented about "the total denial that's going on here today and the refusal to answer simple questions." You have to wonder if the executives have been counseled to not accept any blame for liability reasons. If they were to admit fault, would it subject them to lawsuits? In any case, it's hard to get at the truth in the face of such behavior.

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