Government Sponsored Enterprise

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Government Sponsored Enterprise

A privately held or publicly traded company created by the U.S. Government for some purpose thought to benefit the American economy. For example, Freddie Mac was originally a GSE created to encourage homeownership among middle class and working class Americans. Because it is "sponsored" but not owned by the government, GSE stocks carry higher risk than, say, Treasury securities, which are backed by the full faith and credit of the United States. However, GSEs have an implicit guarantee that the government will not allow them to fail. Indeed, when Fannie Mae and Freddie Mac collapsed in 2008 they almost instantly received federal assistance.
References in periodicals archive ?
Such a report is a critical stimulant in the debate over government-sponsored entity (GSE) reform and supports many of the arguments in NAA/NMHC's GSE reform proposal.
A REIT, AGNC invests exclusively in agency pass-through securities and collateralised mortgage obligations for which the principal and interest payments are guaranteed by a US government agency or a US government-sponsored entity.
Debt backed by bonds issued or guaranteed by a government-sponsored entity (GSE);
Sheehan was a key player in the privatization process that transformed Sallie Mae from a government-sponsored entity (GSE) to a fully private sector organization, which included the refinancing of $100 billion of assets with securitizations and unsecured holding company debt, the defeasance of the GSE's remaining debt obligations and a tender offer to purchase GSE debt securities.
The Department of Industrial Relations (DIR) and Mainstay Business Solutions (Mainstay), a tribal Government-Sponsored Entity of the Blue Lake Rancheria, announced that they reached a settlement in a dispute regarding workers' compensation insurance, which has been in progress since 2003.
Freddie Mac (NYSE:FRE) is a government-sponsored entity that underwrites a significant portion of mortgages in this country.
The fact that a government-sponsored entity purchased 100% of the triple-A bonds makes us very proud of what we've been able to accomplish, and the business we have built over the years," said ABFI Chairman and CEO Anthony J.

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