Fannie-Freddie Regulator Settles With Woman Over Sex Harassment

(Bloomberg) -- Fannie Mae and Freddie Mac’s regulator said that it has resolved sexual harassment allegations brought by an employee who claimed the former head of the agency made “quid pro quo” offers to advance her career.

The Federal Housing Finance Agency announced the agreement with Simone Grimes, who made the complaint last year against then-FHFA director Mel Watt, in a Friday statement that didn’t specify the terms of the settlement.

“Ms. Grimes brought forward serious issues and the agency is pleased to have resolved these matter,” the FHFA said in its statement.

Grimes, a senior FHFA adviser, accused Watt of repeatedly making unwanted advances and said that he denied her a promotion after she refused. Her claims were investigated by the FHFA’s inspector general and the U.S. Postal Service, and both she and Watt testified in Congress on the matter. Watt, whose term as FHFA director ended in January, has denied wrongdoing.

Diane Seltzer Torre, Grimes’s lawyer, said she couldn’t discuss the settlement terms but is pleased with the outcome. She said Grimes is still at the FHFA and plans to continue working there for the foreseeable future.

Seltzer Torre said she was pleased that the new leadership of the agency moved swiftly to resolve the matter.

“This new administration took a much different view of what had happened,” she said.

To contact the reporter on this story: Elizabeth Dexheimer in Washington at edexheimer@bloomberg.net

To contact the editors responsible for this story: Gregory Mott at gmott1@bloomberg.net, Ben Bain

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