Government Sponsored Enterprise

(redirected from Government owned corporation)
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 ?
I commissioned a report into these matters by Mr Jim Colvin who has expertise in Government Owned Corporations and it is clear action needs to be taken to address financial performance issues.
We're ensuring our Government owned corporations are delivering new energy infrastructure and energy security to drive new investments in energy projects and new jobs in regional Queensland, Mr Pitt said.
Formed from the merger of electricity distributors Ergon Energy and Energex, the new Energy Queensland brings together two well-respected government owned corporations, creating an energy business to respond to the needs of customers and the current and future energy market.
Treasurer Tim Nicholls said the Results of audit: Queensland state government financial statements 2013-14 report found that the Government s financial reporting was of a high standard and a true and fair reflection of the finances of both Government and the overall government sector, which includes government owned corporations.
Mr Nicholls said the Government remained committed to the simplification of employment agreements, including the removal of the no forced redundancy provisions for most government owned corporations.
From July 1 next year the Power and Water Corporation (PWC) will be restructured to create two new stand-alone government owned corporations with separate boards.

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