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. In 2023,Fannie Mae was ranked number 28 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,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.
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,known as Fannie Mae,and the Federal Home Loan Mortgage Corporation,or Freddie Mac.
Randall S. Kroszner is an American economist who served as a member of the Federal Reserve Board of Governors from 2006 to 2009. Kroszner chaired Fed's board Committee on Supervision and Regulation of Banking Institutions during the global financial crisis. He 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. The crisis led to a severe economic recession,with millions of people losing their jobs and many businesses going bankrupt. The U.S. government intervened with a series of measures to stabilize the financial system,including the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act (ARRA).
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 former chief executive officer and 12th president of the Federal Reserve Bank of St. Louis,a position he held from 2008 until August 14,2023. In July 2023,he was named dean of the Mitchell E. Daniels Jr. School of Business at Purdue University.
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.
James B. Lockhart III is an American U.S. Navy officer,business executive,and,since September 2009,Vice Chairman of WL Ross &Co,which manages $9 billion of private equity investments,a hedge fund and a Mortgage Recovery Fund. It is a subsidiary of Invesco,a Fortune 500 investment management firm. He coordinates WL Ross's investments in financial services firms and mortgages. Lockhart serves co-chairs the Bipartisan Policy Center's Commission on Retirement Security and Personal Savings.
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.
Timothy Franz Geithner is an American former central banker who served as the 75th United States Secretary of the Treasury under President Barack Obama from 2009 to 2013. He was the President of the Federal Reserve Bank of New York from 2003 to 2009,following service in the Clinton administration. Since March 2014,he has served as president and managing director of Warburg Pincus,a private equity firm headquartered in New York City.
William C. Dudley is an American economist who served as the president of Federal Reserve Bank of New York from 2009 to 2018 and as vice-chairman of the Federal Open Market Committee. He was appointed to the position on January 27,2009,following the confirmation of his predecessor,Timothy F. Geithner,as United States Secretary of the Treasury.
Emil W. Henry,Jr. is an American business leader and public policy expert on economics,financial institutions,capital markets,and financial regulation. He is a former Assistant Secretary for Financial Institutions of the U.S. Treasury Department serving from 2005 to 2007 under Secretaries John Snow and Hank Paulson. He is the CEO and Managing Partner of Henry Tiger LLC and Tiger Infrastructure Partners,a private equity firm.
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.
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.
William Louis Wascher is an American economist and the deputy director of the Division of Research and Statistics in the Federal Reserve Board of Governors.
