Government Sponsored Enterprise

(redirected from Government-owned corporations)

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 ?
During the Rio earth summit, activists denounced the Brazilian government for including several government-owned corporations in the NGO Forum, the series of NGO workshops and panels paralleling the official U.N.
Other countries facing similar problems have successfully transferred air traffic control to government-owned corporations, an approach that was recently endorsed by the Clinton administration.
He cited the 'various defunct or non-functioning government-owned corporations' such as the Metro Rail Transit (MRT) as evidence of the government's poor track record in business management.
Another trend is the rise of state capitalism - an increase in the number of government-owned corporations.
On Sunday, the government also annulled ''political appointments'' made in various government-owned corporations and semi-government agencies, the home minister said.
Another resolution termed as revolutionary step on the part of the present democratic government the grant of 12 percent shares of the government-owned corporations to the workers.
* Many critical industrial segments remain firmly dominated by government-owned corporations.
He further said that government should ensure good governance and corruption free structures through establishment and proper functioning of democratic institutions, making the country a self-reliant economy by stopping wasteful, unproductive expenses, making government-owned corporations profitable, accelerating industrialisation and increasing productivity, improving agricultural sector productivity, reducing inequalities through a policy of redistribution of income and wealth.
Rahimi announced Saturday that some ministries, state agencies and government-owned corporations would be moved out of the capital.
They described government-owned corporations as key pillars of the national economy, hence the need to continue supporting them for the country to thrive.
"The rewards are high in terms of a panoply of jobs across design, manufacturing, construction, services and R&D activities, coupled with economic growth, but it is recognised that the market alone will not open up this opportunity due to unsustainably cheap shale gas and international government-owned corporations with access to cheap finance capital."
The minister announced that they privatized 139 government-owned corporations during the period from 1990 to 2012, describing them as worthless companies that used up a lot of money but produced nothing in return.

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