Updated from Saturday, July 18Fortress Investment Group ( FIG) confirmed it has named board member Daniel Mudd as its new CEO. His appointment is effective Aug. 11, the company said in a statement. As CEO, Mudd replaces Wesley Edens, Fortress's co-founder and largest shareholder. Edens and principal Peter Briger have been named as co-chairman of the private-equity firm's board. "This expansion of the firm's management team will allow the principals to focus more of their time on managing existing investments as well as identifying and executing new investment opportunities," Fortress said. The principals of the firm will continue to own about 70% of the firm. The news of Mudd's expected appointment was reported by the Wall Street Journal over the weekend. Mudd is a former chief of Fannie Mae ( FNM). He was forced out as the chief of Fannie Mae when the government took over the company last September, the Journal noted. Shares of Fortress closed Friday down 13 cents at $3.25, significantly below their 52-week high of $13.85. Since its initial public offering in February 2007, Fortress's stock has dropped 90%, the Journal notes.