Government Sponsored Enterprise

(redirected from Government Owned Enterprise)
Also found in: Acronyms.

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 ?
'A related question was whether politicians in power should serve as directors of government owned enterprises,' Ideas said upon launching the book.
NA: Privatize government owned enterprises like Railways, PIA and spend same subsidies to develop SME sector, which is the back bone of every economy in the world.
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. The net benefit equivalent to a net present value of US$10.4 billion (in 1999 prices) was distributed to consumers as big gainers and both domestic and foreign investors as gainers, while government was a loser and there was a significant air pollution cost.
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.

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