Government Sponsored Enterprise


Also found in: Medical, Acronyms, Encyclopedia, Wikipedia.

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 ?
Richard Baker (R-LA), former Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. Modest effort, was the equivalent of whipping Fannie and Freddie with a wet noodle.
"We take this report seriously," Raines told members of the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises.
As Congress debates the future regulatory oversight of Fannie Mae and Freddie Mac, a statement by a top Treasury official indicating the department's willingness to consider extinguishing the credit line provided to government sponsored enterprises has shifted the focus of debate from re-regulation of safety and soundness to a referendum on the entire mortgage finance system.
Maco, director of the Securities and Exchange Commission's Office of Municipal Securities, told members of the House Subcommittee on Capital Markets, Securities and Government Sponsored Enterprises that approximately $1.7 billion of public money was lost on investment strategies of over 190 local government entities, including Orange County, California.
The bonds included in the reference index are issued by US government sponsored enterprises such as US Ginnie Mae (GNMA), Fannie Mae (FNMA) and Freddie Mac (FHLMC) and have an investment grade rating.
Quigley, University of California, Berkeley, "The Future Role of the Government Sponsored Enterprises: The Role for Government in the U.S.

Full browser ?