Effects of Recapitalizing Fannie Mae and Freddie Mac Through Administrative Actions

Congressional Budget Office

No 56496, Reports from Congressional Budget Office

Abstract: CBO analyzed two hypothetical options for recapitalizing the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac by allowing them to retain all of their profits for three or five years, after which they would sell new common stock to investors to replace the Treasury’s ownership stake. Those actions would be taken administratively. CBO looks at how those options could affect various factors, such as CBO’s budget projections for the GSEs; cash flows between the GSEs and their shareholders, including the Treasury; and the GSEs’ status as federal entities.

JEL-codes: G21 (search for similar items in EconPapers)
Date: 2020-08-18
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Persistent link: https://EconPapers.repec.org/RePEc:cbo:report:56496

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