Search results
Results from the WOW.Com Content Network
The necessary restatement was expected to cost $10.8 billion, but was completed at a total cost of $6.3 billion in restated earnings as listed in Fannie Mae's Annual Report on Form 10-K. [76] Concerns with business and accounting practices at Fannie Mae predate the scandal itself.
Fannie Mae, however, is converted into a stand-alone corporation, a government-sponsored enterprise (GSE). 1970 : Federal Home Loan Mortgage Corporation ( Freddie Mac ) is created by an act of Congress as a government-sponsored enterprise to buy mortgages from the Thrift/savings and loan industry; it is owned by the industry itself (until 1989)
While asset values on the balance sheet are marked down to reflect expected losses, these institutions still owe the creditors the full amount of liabilities. To use a simplistic example, Company X used a $10 equity or capital base to borrow another $290 and invest the $300 amount in various assets, which have fallen 10% in value to $270.
Fannie Mae and Freddie Mac history. In 1938, the government created Fannie Mae, or the Federal National Mortgage Association, amid the struggles of the Great Depression.
An FNMA loan, aka a conforming loan or Fannie Mae-backed mortgage, is a loan or mortgage that has been sold to the Federal National Mortgage Association (FNMA, or Fannie Mae) — or one that meets ...
The Supervisory Capital Assessment Program, publicly described as the bank stress tests (even though a number of the companies that were subject to them were not banks), was an assessment of capital conducted by the Federal Reserve System and thrift supervisors to determine if the largest U.S. financial organizations had sufficient capital buffers to withstand the recession and the financial ...
Further, shadow banks were able to mask the extent of their risk taking from investors and regulators through the use of complex, off-balance sheet derivatives and securitizations. [16] Economist Gary Gorton has referred to the 2007–2008 aspects of the crisis as a "run" on the shadow banking system. [17]
While asset values on the balance sheet are marked down to reflect expected losses, these institutions still owe the creditors the full amount of liabilities. To use a simplistic example, Company X used a $10 equity or capital base to borrow another $290 and invest the $300 amount in various assets, which then fall 10% in value to $270.