Fannie Mae

The two largest GSE’s, Fannie Mae and Freddie Mac, combined to back 5.4 trillion dollars in debt securities, essentially leaving the majority of home mortgage lenders reliant on the two GSEs. They gave out more subprime and Alt-A loans and their management had access to cheap money and the increasingly growing economy generated fast returns. This caused an increase in foreclosures housing prices to go up which in turned lead to losses for Fannie Mae and Freddie Mac. The Federal Reserve…

Case Study 1 Jackie is a doctor at a private family practice in Waco, Texas. He and his wife have been invited to dinner at a nice, expensive restaurant by an old college friend that has recently been employed as a pharmaceutical representative for Fannie Mae Pharmaceuticals. Jim is a new pharmaceutical representative eager to make a good impression on his company. Jim represents the premium diabetes drug, Glucophage, and he wants to discuss with Jackie the benefits of prescribing this…

desperate and couldn’t afford housing. He argues for a free market approach and criticized these policies because they did not lead to a well-functioning market; therefore, the crash was inevitable. Starting in the late 1990s, the government required Fannie Mae and Freddie Mac to acquire increasing numbers of affordable…

Many business were in trouble for example the plywood factories, concreate pipe plant, the hardwood flooring plants, oil companies, wheel factories, cottonseed oil plant, tenant farmers companies, and failure of huge financial establishments like Fannie…

“I have a dream” rings a bell? This speech was given by Martin Luther King. It was delivered at the Lincoln Memorial, Washington D.C. on August 28, 1963. It was part of the Civil Rights Movement. The Civil RIghts Movements was to try to overturn segregation. This lasted for about 4 years (1960-1964). Although the Declaration of Independence states that all men are created equal and the Constitution was amended to extend the rights and protections of citizenship to African Americans. Just…

Bank failures and Mergers As they say, “The Bigger you are, the Harder you Fall” and you will damage your surroundings on the way down. Banks are getting bigger and bigger. With all the mergers and bank failures, the ones still standing is getting bigger and the competition is getting smaller. This is transforming into or already is a monopolistic competition. If one of them were to be a failure, it would create havoc in the economic system. This is exactly like what happen to the Lehman…

and upsetting the U.S. Department of Justice original decision. The decision was unanimous and stated the evidence did now show Countrywide intended any deception. Consequently, the government continues to hold conservatorship of Freddie Mac and Fannie Mae that bought Countrywide loans on good faith that they were solid mortgages (Raymond, 2016). Also this year, Angelo Mozilo was released from further investigation from the Justice Department and all criminal investigations are now clear.…

The agencies developed vantage scores in 2006 and are a great tool for you to use to track your score over time. Do keep in mind that FICO scores are the only model used to assess risk for home mortgages by the government-backed mortgage agencies Fannie Mae and Freddie…

really wanted to truly understand the crisis, and someone recommended me to watch the movie, Too Big to Fail. I learned that housing bubbles were the main cause of the crisis, and the government tried everything to save multiples firms, including Fannie Mae & Freddie Mac, AIG, and more. These firms were able to survive the crisis because of the government’s bailouts. I also learned that during the crisis, the government and many financial firms, such as Goldman Sachs, Citi, Morgan Stanley,…

In the early 2000’s, several companies were investigated following accounting scandals. These companies included Merrill Lynch and Goldman Sachs. According to Gary Giroux (2008), most of the scandals involved fraudulent earnings and/or fraud related to stock. It was because of these scandals that new legislation was created, with old legislation being revised. These scandals came as a result of lax regulations, and regulations that were not properly enforced. While the scandals did result in…