Private-equity firm Fortress Investment Group is expected to name Daniel Mudd, former chief executive of Fannie Mae, as CEO, according to a person familiar with the matter.

Mudd, who serves on Fortress' board of directors, would replace Wesley Edens, Fortress's co-founder and largest shareholder. The appointment would relieve Edens and his top executives of some management responsibilities, allowing them to focus on the firm's weakened portfolio and future investments. And it gives Mudd a new act after being forced out as Fannie's CEO when the government took control of the company in September.

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