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The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 1)

The Stoop (NYU Furman Center)

7 Additionally, GSE subsidies and privileges are crafted to largely avoid showing up as a federal budget expenditure, thus avoiding competing with other priorities for scarce tax dollars. 11 This core flaw of GSE design was described by then-Secretary of the Treasury Henry Paulson when F&F were placed into conservatorship in 2008.

2008 88
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Current GSE Guarantee Fees Are Too Low to Be Consistent with Regulatory Capital: Does This Mean a Large Increase Is Coming?

The Stoop (NYU Furman Center)

In the years immediately following conservatorship (which began in September 2008), the FHFA increasingly took over setting the average G-fee. trillion in 2016, which at the time was almost twice the size of the Federal Reserve’s balance sheet and became the largest source of GSE profits.

2008 52