This website uses cookies to ensure you have the best experience. Learn more

Freddy Mac And Fannie Mae Essay

960 words - 4 pages

Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are private corporations that were established by Congress and are referred to as government sponsored enterprises or GSEs. They are the largest “packagers” of individual mortgages into mortgage backed securities (MBS) which they guarantee against loss.
We will be addressing the following threats to your financial institutions stability. Counterparty risk. Internal and external vulnerability and threats. Stemming the tide of losses from overly aggressive practices in lending continues to retard the marketplace and has yet to reach equilibrium. The use of macro measures is of critical importance in returning the company to ...view middle of the document...

Predictive or ex ante measures may be able to provide early warnings of a future crisis, for example, by identifying specific vulnerabilities in the structure of the system that may demand a preventive policy, or by identifying potential shocks to the financial system, such as those arising from asset price misalignments;
Contemporaneous measures can alert policymakers on a real-time basis to the level of risks and vulnerabilities, for example, by identifying individual institutions that pose by outsized threats to financial stability, or by helping policymakers understand events as a crisis unfolds; and, Ex post measures support forensic analysis of crises after they occur and can help supervisors and senior management in the orderly liquidation of financial institutions that have failed.
Measures of Interconnectedness, Using Relationship Data. These measures take a network approach to the financial system. To date, these measures have had to make do with traditional data sources, inferring the underlying connections by observing co-movements in market prices. The data requirements for a fully detailed counterparty network model are potentially extensive. A key policy development related to models of interconnectedness is the requirement in the Dodd-Frank Act for large financial institutions to create resolution plans, also known as living wills. These plans must include details on firms’ ownership structures, assets, liabilities, contractual obligations, cross-guarantees, collateral pledges, major counterparties, and significant credit exposures. An example of what is possible going forward appears in Chart 3.1.1, which depicts the connections of the largest money market funds to the institutional issuers whose securities they hold. These data only became available in 2010 through the SEC’s new Form N-MFP. They can illuminate systemic fragility by revealing which issuers might face funding liquidity issues if a given money market fund experienced a run, or which money market funds would be harmed if an issuer were to default.

Myopia. Even if calculated accurately, CVA captures, at best, the immediate cost of a counterparty’s default. This is a myopic view in the sense that it does not capture the potential follow-on effects of such a default. One...

Other assignments on Freddy Mac And Fannie Mae

Macroeconomics Essay

3440 words - 14 pages the investment banking issues went hand in hand. Freddie Mac & Fannie Mae were offering securitized, high risk loans to the investment banks. The people they borrow money to, could not afford to pay their loans, the house market began to tumble. These investment banks were highly leveraged and had little cash to back up their large balance sheets. In regards to the auto industry, the unions driving up American car prices did not help the

Keynes Essay

4891 words - 20 pages 1970-е годы. Серии крупной многомиллиардной финансовой помощи следовали в ходе последнего финансового кризиса (2008 – 2009 гг.) во всех крупных мировых экономиках. В США правительство национализировало "Fannie Mae" и "Freddie Mac", которые контролировали большую часть США на ипотечном рынке и выручило "Bear Sterns", "AIG", "Citigroup", "BOA" и т.д. Аналогичным образом в России правительство через ВТБ выручило "Русал", "АвтоВАЗ", "Норильский Никель

Mgt216

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages , and Switzerland. In the Netherlands, voluntary euthanasia has been legal since 1983, with some 3,000 people requesting it each year. In Australia, assisted suicide was legalized in the Northern Territory with the backing of a substantial majority of the local population, but was then overthrown by the Federal Senate before anyone could actually use the new law. However, in Oregon and California, state legislation has been passed to allow for

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

Similar Documents

Mortgage Fraud Essay

659 words - 3 pages Beginning in 2008, mortgage companies had begun to start making loans to individuals as a way to promote home ownership. With the help of Fannie Mae and Freddie Mac, there was increased pressure on these mortgage companies to loan to individuals who did not meet certain requirements that would qualify them. For obvious reasons, these qualifications were in place so that a crisis like this would have never happened. Additionally, the mortgage

Bernard Madoff Essay

2506 words - 11 pages passed on, but in reality they were being bullied. After closing on a subprime loan, the lenders would turn around and sell the mortgage loans to banks or Fannie Mae (“Fannie”) or Freddie Mac (“Freddie”). This sale led to two things, more money for lenders to lend to people in the market and a steady stream of monthly income for the banks, Fannie or Freddie (These three entities will be referred to as “Institutions”). These Institutions would

Inside Job Essay

1698 words - 7 pages United States government under President Bill Clinton. His administration went to great lengths to increase the national homeownership rate. They promoted very little down payments and also pushed for lenders to give mortgages to first time buyers, no matter how stable their financial situation was. So government intervened and they pushed for these risky mortgages to be given out. Even the government controlled Fannie Mae and Freddie Mac would

Dow’s Bid For Rohm And Haas

1864 words - 8 pages . IV. Risks of unpredictable circumstances Contractual Term Included: § 3.1 Material Adverse Effect (MAE clause) The MAE clause protects buyer’s interests by allowing the buyer to terminate the deal under special circumstances and changes that had a material adverse effect on the target company’s business. However, it is extremely hard to define whether an event is under MAE or not. So in real world, MAE clause does not necessarily