Serving Two Masters, Yet Out of Control
Fannie Mae and Freddie Mac

  • Title:

    Serving Two Masters, Yet Out of Control
  • Edited By:

    Peter J. Wallison
  • Format:

    Paperback
  • Paperback Price:

    20.00
  • Paperback ISBN:

    0-8447-4166-3
  • Paperback Dimensions:

    6'' x 8.75''
  • 187 Paperback pages
  • Buy the Book

Click here to view the full book as an Adobe PDF.

Because two disparate, almost diametrically opposite clients demand loyalty from Fannie Mae and Freddie Mac, these government-sponsored entities must fulfill two ultimately irreconcilable roles. As publicly owned corporations, they must maximize profitability for their shareholders; yet, as quasi-government agencies, they should use their huge, implicit government subsidies in support of their public missions. In reality, they split the difference as they transfer a large portion of their subsidy to their shareholders. At the same time, Congress does not routinely scrutinize Fannie and Freddie, despite their enormous size and importance. The two are clearly too large and powerful for the small agency charged by Congress as their watchdog. Thus, while attempting to serve two masters, Fannie and Freddie are literally out of control.

Would privatization solve the dilemma of the dual public and private form? If not, what other options exist? In eleven essays, public figures, economists, and government officials probe the favored positions that have allowed the two agencies to grow to unprecedented size, realize extraordinary profitability, and achieve unparalleled influence over the political process.

Contributors are Jonathan Brown, Essential Information; Charles W. Calomiris, Columbia University and AEI; Richard Scott Carnell, Fordham University; Ron Feldman, Federal Reserve Bank of Minneapolis; Ralph Nader, Mark Overend, SLM Holding Corporation; Robert S. Seiler Jr., Office of Federal Housing Enterprise Oversight; Thomas H. Stanton, attorney; Robert Van Order, Freddie Mac; and John C. Weicher, Hudson Institute. Peter J. Wallison, volume editor, is an AEI resident fellow.

View by chapter:

"Introduction," by Peter J. Wallison

"Estimating the Value and Allocation of Federal Subsidies," by Robert S. Seiler Jr.

"The Economics of Fannie Mae and Freddie Mac," by Robert Van Order

"Federal Deposit Insurance and Federal Sponsorship of Fannie Mae and Freddie Mac: The Structure of Subsidy," by Richard Scott Carnell

"An Economist's Case for GSE Reform," by Charles W. Calomiris

"How Fannie and Freddie Influence the Political Process," by Ralph Nader

"Setting GSE Policy through Charters, Laws, and Regulations," by John C. Weicher

"Improving Control over Fannie Mae and Freddie Mac," by Ron Feldman

"Reform of GSE Housing Goals," by Jonathan Brown

"The Privatization of Sallie Mae," by Mark Overend

"An Alternative Approach to GSE Reform through National Mortgage Associations," by Thomas H. Stanton

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Peter J.
Wallison

What's new on AEI

We still don't know how many people Obamacare enrolled
image The war on invisible poverty
image Cutting fat from the budget
image Speaker of the House John Boehner on resetting America’s economic foundation
AEI on Facebook
Events Calendar
  • 22
    MON
  • 23
    TUE
  • 24
    WED
  • 25
    THU
  • 26
    FRI
Monday, September 22, 2014 | 2:30 p.m. – 4:00 p.m.
Policy implications of the new US labor market normal

We welcome you to join us as a panel of economists discuss US wage and price prospects in the coming months and the implications for the Federal Reserve’s current unorthodox monetary policy.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.