The Federal National Mortgage Association (FNMA),commonly known as Fannie Mae,is a United States government-sponsored enterprise (GSE) and,since 1968,a publicly traded company. Founded in 1938 during the Great Depression as part of the New Deal,the corporation's purpose is to expand the secondary mortgage market by securitizing mortgage loans in the form of mortgage-backed securities (MBS),allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations. Its brother organization is the Federal Home Loan Mortgage Corporation (FHLMC),better known as Freddie Mac. As of 2018,Fannie Mae is ranked number 21 on the Fortune 500 rankings of the largest United States corporations by total revenue.
Franklin Delano Raines also known as Frank Raines is an American business executive. He is the former chairman and chief executive officer of the Federal National Mortgage Association,commonly known as Fannie Mae,who served as White House budget director under President Bill Clinton. His role leading Fannie Mae has come under scrutiny. He has been called one of the "25 People to Blame for the Financial Crisis" according to Time magazine.
The Federal Home Loan Mortgage Corporation (FHLMC),commonly known as Freddie Mac,is a publicly traded,government-sponsored enterprise (GSE),headquartered in Tysons Corner,Virginia. The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with the Federal National Mortgage Association,Freddie Mac buys mortgages,pools them,and sells them as a mortgage-backed security (MBS) to private investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. The name "Freddie Mac" is a variant of the FHLMC initialism of the company's full name that was adopted officially for ease of identification.
The Federal Reserve System has faced various criticisms since it was authorized in 1913. Nobel laureate economist Milton Friedman and his fellow monetarist Anna Schwartz criticized the Fed's response to the Wall Street Crash of 1929 arguing that it greatly exacerbated the Great Depression. More recent prominent critics include former Congressman Ron Paul.
A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress. Their intended function is to enhance the flow of credit to targeted sectors of the economy,to make those segments of the capital market more efficient and transparent,and to reduce the risk to investors and other suppliers of capital. The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors primarily by reducing the risk of capital losses to investors:agriculture,home finance and education. Well known GSEs are the Federal National Mortgage Association,or Fannie Mae,and the Federal Home Loan Mortgage Corporation,or Freddie Mac.
The Federal Reserve Bank of St. Louis is one of 12 regional Reserve Banks that,along with the Board of Governors in Washington,D.C.,make up the United States' central bank. Missouri is the only state to have two main Federal Reserve Banks. Located in downtown St. Louis,the St. Louis Fed is the headquarters of the Eighth Federal Reserve District,which includes the state of Arkansas and portions of Illinois,Indiana,Kentucky,Mississippi,the eastern half of Missouri and West Tennessee. It has branches in Little Rock,Louisville and Memphis. Its building,at 411 Locust Street,was designed by St. Louis firm Mauran,Russell &Crowell in 1924. The Eighth District serves as a center for local,national and global economic research,and provides the following services:supervisory and regulatory services to state-member banks and bank holding companies;cash and coin-handling for the District and beyond;economic education;and community development resources.
Randall S. Kroszner is a former member of the Board of Governors of the Federal Reserve System of the United States. He was chairman of its Committee on Supervision and Regulation of Banking Institutions during the global financial crisis. He took office on March 1,2006 to fill an unexpired term,and stepped down on January 21,2009. Kroszner has been professor of economics at the University of Chicago since the 1990s,with various leaves,and named Norman R. Bobins Professor of Economics at the University of Chicago Booth School of Business in 2009,and serves as a senior advisor for Patomak Partners.
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. It was triggered by a large decline in US home prices after the collapse of a housing bubble,leading to mortgage delinquencies,foreclosures,and the devaluation of housing-related securities. Declines in residential investment preceded the Great Recession and were followed by reductions in household spending and then business investment. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines.
Vernon P. "Vern" McKinley,born in East Chicago,Indiana advises governments on financial sector policy and legal issues. He is a Visiting Scholar at the George Washington University Law School and the co-author with the Wall Street Journal's James Freeman of Borrowed Time:Two Centuries of Booms,Busts and Bailouts at Citi published by HarperCollins in 2018. He is also the author of Financing Failure:A Century of Bailouts,published by the Independent Institute in 2012. He was a primary election challenger to 28-year incumbent Congressman Frank Wolf in northern Virginia's 10th congressional district in the 2008 elections,the only one to ever challenge Wolf in a primary during his long tenure. McKinley lives with his family in Ashburn,Virginia and they have also lived in Kyiv and Yerevan.
The Shadow Open Market Committee (SOMC) is an independent group of economists,first organized in 1973 by Professors Karl Brunner,from the University of Rochester,and Allan Meltzer,from Carnegie Mellon University,to provide a monetarist alternative to the views on monetary policy and its inflation effects then prevailing at the Federal Reserve and within the economics profession.
The subprime mortgage crisis impact timeline lists dates relevant to the creation of a United States housing bubble and the 2005 housing bubble burst and the subprime mortgage crisis which developed during 2007 and 2008. It includes United States enactment of government laws and regulations,as well as public and private actions which affected the housing industry and related banking and investment activity. It also notes details of important incidents in the United States,such as bankruptcies and takeovers,and information and statistics about relevant trends. For more information on reverberations of this crisis throughout the global financial system see Financial crisis of 2007–2008.
James Brian Bullard is the chief executive officer and 12th president of the Federal Reserve Bank of St. Louis,positions he has held since 2008. He is currently serving a term that began on March 1,2021. In 2014,he was named the 7th most influential economist in the world in terms of media influence.
In September 2008 the Federal Housing Finance Agency (FHFA) announced that it would take over the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Both government-sponsored enterprises,which finance home mortgages in the United States by issuing bonds,had become illiquid as the market for those bonds collapsed in the subprime mortgage crisis. The FHFA established conservatorships in which each enterprise's management works under the FHFA's direction to reduce losses and to develop a new operating structure that will allow a return to self-management.
Regulatory responses to the subprime crisis addresses various actions taken by governments around the world to address the effects of the subprime mortgage crisis.
The U.S. subprime mortgage crisis was a set of events and conditions that led to a financial crisis and subsequent recession that began in 2007. It was characterized by a rise in subprime mortgage delinquencies and foreclosures,and the resulting decline of securities backed by said mortgages. Several major financial institutions collapsed in September 2008,with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.
The Great Recession in the United States was a severe financial crisis combined with a deep recession. While the recession officially lasted from December 2007 to June 2009,it took many years for the economy to recover to pre-crisis levels of employment and output. This slow recovery was due in part to households and financial institutions paying off debts accumulated in the years preceding the crisis along with restrained government spending following initial stimulus efforts. It followed the bursting of the housing bubble,the housing market correction and subprime mortgage crisis.
Jerry L. Jordan is a former member of President Ronald Reagan's Council of Economic Advisers and former president and chief executive officer of the Federal Reserve Bank of Cleveland.
This is an unannotated bibliography of writings about Fannie Mae and Freddie Mac as well as some material that covers other government sponsored enterprises such as the Federal Home Loan Bank System. While it is comprehensive,it is not exhaustive,with a focus on work published through 2011 by government agencies,economists,legal and policy scholars,private sector analysts and think tanks. It does not include Congressional testimony and shorter works. This bibliography is derived from Reiss 2012.
Phillip Lee "Phill" Swagel is an American economist who is currently the director of the Congressional Budget Office. As Assistant Secretary of the Treasury for Economic Policy from 2006 to 2009,he played an important role in the Troubled Asset Relief Program that was part of the U.S. government's response to the financial crisis of 2007–08. He was recently a Professor in International Economics at the University of Maryland School of Public Policy,a non-resident scholar at the American Enterprise Institute,senior fellow at the Milken Institute,and co-chair of the Bipartisan Policy Center's Financial Regulatory Reform Initiative.
Michael David Bordo is a Canadian and American economist,currently Board of Governors Professor of Economics and Distinguished Professor of Economics at Rutgers University. He is a Research Associate at the National Bureau of Economic Research as well as a Distinguished Visiting Fellow at the Hoover Institution at Stanford University. He is the third most influential economic historian worldwide according to the RePEc/IDEAS rankings. He was a student of Milton Friedman and has co-authored numerous books and articles with Anna Schwartz.
