Government-sponsored enterprise
Government-sponsored enterprise (GSE) is a special legal status for private US financial institutions that pursue business purposes that are in the public interest. The best known examples are the Fannie Mae , Freddie Mac and the FHL banks . Despite their state mandate, the GSE are not state-owned. They are subject to special supervisory authorities. GSE are exempt from federal, state, and local taxes.
The GSE procure the capital market money through issuance of bonds . As state-affiliated institutions, they receive the best possible credit ratings from the rating agencies , even though they do not have an express state guarantee. However, the GSE can draw on a line of credit from the US Treasury Department in the event of liquidity problems.
In the wake of the 2007 financial crisis , two GSEs, Fannie Mae and Freddie Mac, were nationalized on September 7, 2008 and the responsible regulatory authority, the Federal Housing Finance Agency (FHFA), took control.
Individual evidence
- ↑ US government takes over Freddie Mac and Fannie Mae , Spiegel online , September 7, 2008.
- ↑ America nationalized Freddie and Fannie , FAZ , September 8, 2008
- ^ Under the wing of Washington , Süddeutsche Zeitung , September 7, 2008