GSE credit facility program

From SourceWatch
Jump to: navigation, search

The GSE credit facility program (Treasury)

This program was intended to be used as a backstop of liquidity for Fannie Mae and Freddie Mac. It was never used and was shut down by Treasury on Dec. 31, 2009. It was authorized under HERA.[1]

Wall Street Bailout Accounting
(back to main table)
GSE CREDIT FACILITY PROGRAM
Balance Sheet
Disbursed*: $0[2]
Current outstanding: $0[3]
Public Funds
Maximum at-risk: $25B[4]
Current at-risk: $0[5]

* See the methodology and glossary for definitions of "disbursed," etc.

Funding agency and aid type

The funding agency was the Treasury Department.

Loans to Fannie and Freddie.

Who benefits

Participants and investors in the housing market.

Background

SIGTARP[6]:

“GSE Credit Facility Program — Total Potential Support: $25 Billion. The third Treasury program conducted under HERA relating to the GSEs is a program designed to “ensure credit availability to the housing GSEs by providing secured funding on an as-needed basis.” All of the GSEs (Fannie Mae, Freddie Mac, and the FHLBs) would be able to borrow under the program if needed until December 31, 2009. Treasury’s FY 2010 budget describes the program as one of short-term loans — less than one month but greater than one week — collateral- ized by MBS issued by Fannie Mae and Freddie Mac and advances made by the FHLBs; no loan can have a maturity date later than December 31, 2009.”

Via Prins:[7]

“The function of the GSE Credit Facility is to ensure credit availability to the housing GSEs by providing secured funding on an as needed basis under terms and conditions established by the Secretary of the Treasury to protect taxpayers. Fannie Mae, Freddie Mac, and FHLBs are eligible to borrow under this program if needed. This facility offers liquidity if needed until December 31, 2009.”

Notes

Prins’ analysis: “Additional credit made available to Fannie Mae and Freddie Mac. Expires December 31, 2009.”

Articles and resources

Related SourceWatch articles

References

  1. U.S. Treasury press release, “Treasury Issues Update on Status of Support for Housing Programs”, Dec. 24, 2009, accessed Mar. 10, 2010.
  2. Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), “Quarterly Report to Congress July 21, 2009”, p. 154.
  3. Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), “Quarterly Report to Congress July 21, 2009”, p. 154.
  4. Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), “Quarterly Report to Congress July 21, 2009”, p. 154.
  5. Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), “Quarterly Report to Congress July 21, 2009”, p. 154.
  6. SIGTARP July 2009 report, p. 154.
  7. House Committee on Financial Services, Housing and Economic Recovery Act of 2008, http://financialservices.house.gov/FHA.html (accessed September 10, 2009); U.S. Department of the Treasury, “Budget in Brief FY 2010,” p. 75, http://www.ustreas.gov/offices/management/budget/budgetinbrief/fy2010/BIB-HousingGSE.pdf (accessed September 10, 2009).

External resources

External articles

This article is a stub. You can help by expanding it.