Government Sponsored Enterprise

(redirected from Government Owned Enterprise)

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 ?
The main benefits came from the IPPs' contribution to resolving the power crisis during 1990-93 and hence to promoting economic and social development, which otherwise would have been lost and hard to recover, by mobilizing funding and delivering faster , and being more efficient than government owned enterprises.
This share does not include wholly Government owned enterprises such as state carrier Trans-namib (including Air Namibia), electricity provider Nampower (formerly Swawek), the Development Brigade Corporation which gives jobs to ax-fighters, the Agricultural Bank, the Post Office and Telecom Namibia.
Team recently disclosed that the FCPA may have been violated due to "improper payments" made by employees at its Trinidad branch operation to certain of Team's customers, including to "foreign government owned enterprises.
There is a growing perception that most of the government owned enterprises have been damaged to the level that injection of funds just cannot turn them around.
In the filing, the company stated that "we were informed of allegations of improper payments made by local employees of our wholly-owned Trinidad subsidiary to employees of certain customers, including foreign government owned enterprises.

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