F124. Government Sponsored Enterprises
Federal Reserve definition for F124 flow of funds table
Government-sponsored enterprises are financial institutions that provide credit to specific groups or areas of the economy, such as farmers or housing.
The sector comprises the Federal Home Loan Banks, Fannie Mae, Freddie Mac, Sallie Mae (Student Loan Marketing Association, since 1997 a subsidiary of SLM Holding Corporation, a private company.), the Farm Credit System, Financing Corporation (FICO), and Resolution Funding Corporation (REFCORP).
Some of the enterprises were originally agencies within the federal government, but federal ownership equity in them has been retired and they are now considered private financial institutions.
FICO and REFCORP are mixed-ownership government corporations established to serve as financing vehicles for the FSLIC Resolution Fund and the Resolution Trust Corporation respectively.
Some have maintained legal ties to the U.S. government by having board members who are federal officials or by maintaining emergency lines of credit with the Department of Treasury, or both.
In the flow of funds accounts, the securities issued by the agencies are identified as U.S. government agency obligations; they frequently trade at prices more favorable than those of securities issued by corporations that do not have an association with the federal government.
