Fannie Mae: Public or Private? Harvard Case Solution & Analysis

In 1987, President Ronald Reagan developed the President's Commission on Privatization to determine federal government functions that might be moved to the economic sector. One company that the Commission thought about was the Federal National Mortgage Association, or Fannie Mae. Fannie Mae was a Depression-era development that was accused of developing a secondary market for home mortgage.

Legislators had actually currently partly privatized Fannie Mae in 1954 and once again in 1968, the company in 1987 still maintained close links to the federal government, consisting of an emergency situation line of credit from the U.S. Treasury. After its considerations, the President's Commission advised Fannie Mae be reorganized into a completely private company.

PUBLICATION DATE: February 10, 2009 PRODUCT #: 709025-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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