Implications of the New Fannie Mae and Freddie Mac Risk - based Capital Standard
نویسندگان
چکیده
Economics at Columbia University, and Senior Director and Chairman of the Advisory Committee at Sebago Associates, Inc., an economic policy consulting firm. Dr. Stiglitz is the winner of the 2001 Nobel Prize in Economic Sciences. Previously, Dr. Stiglitz served as the World Bank’s Chief Economist and Senior Vice President for Development Economics and, before that, as the Chairman of the President’s Council of Economic Advisers.
منابع مشابه
Ben S Bernanke: GSE portfolios, systemic risk, and affordable housing (Central Bank Articles and Speeches)
The subject of my remarks today is the regulation and supervision of two large financial companies: the Federal National Mortgage Association (known familiarly as Fannie Mae) and the Federal Home Loan Mortgage Corporation (or Freddie Mac). Fannie Mae and Freddie Mac were created by acts of the Congress and are thus known as government-sponsored enterprises, or GSEs. The Congress chartered these...
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Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W First Quarter 2002 T he federal government created the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to enhance the availability of mortgage credit by providing stability and liquidity to the secondary mortgage market. These government-sponsored enterprises (GSEs) have b...
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Fannie Mae and Freddie Mac’s implicit government guarantee is widely argued to cause irresponsible risk taking. Despite moral-hazard concerns, this paper presents evidence that Fannie Mae and Freddie Mac (the GSEs) more effectively managed home price risks during the 2000-2006 housing boom than private insurers. Mortgage origination data reveal that the GSEs were selecting loans with increasing...
متن کاملAn Options-Based Approach to Evaluating the Risk of Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac assume a significant amount of interest and prepayment risk and all of the credit risk for about half of the $8 trillion U.S. residential mortgage market. Their hybrid government-private status, and the perception that they are too big to fail, make them a potentially large, but largely unaccounted for, risk to the federal government. Measuring the size and risk of th...
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تاریخ انتشار 2001