Resolving Large Financial Intermediaries: Banks Versus Housing Enterprises

FRB Atlanta Working Paper No. 2004-23a

69 Pages Posted: 4 Jan 2005

See all articles by Robert Eisenbeis Eisenbeis

Robert Eisenbeis Eisenbeis

Independent

W. Scott Frame

Federal Reserve Bank of Dallas

Larry D. Wall

Federal Reserve Bank of Atlanta - Research Department

Date Written: October 2004

Abstract

This paper examines the policy issues with respect to resolving the possible failure of housing enterprises Fannie Mae or Freddie Mac. The authors compare and contrast these issues with those raised in the context of large bank failures and also identify important differences in the extant supervisory authorities. Based on these discussions, they offer a number of policy suggestions designed to minimize the cost of resolution and protect taxpayers from loss should a large bank or housing enterprise fail.

Keywords: Fannie Mae, Freddie Mac, mortgages, bank failure, too big to fail, resolution, receivership

JEL Classification: G21, G28

Suggested Citation

Eisenbeis, Robert Eisenbeis and Frame, W. Scott and Wall, Larry D., Resolving Large Financial Intermediaries: Banks Versus Housing Enterprises (October 2004). FRB Atlanta Working Paper No. 2004-23a. Available at SSRN: https://ssrn.com/abstract=639601 or http://dx.doi.org/10.2139/ssrn.639601

Robert Eisenbeis Eisenbeis (Contact Author)

Independent ( email )

No Address Available

W. Scott Frame

Federal Reserve Bank of Dallas ( email )

2200 N Pearl Street
Dallas, TX 75201
United States
214-922-6984 (Phone)

Larry D. Wall

Federal Reserve Bank of Atlanta - Research Department ( email )

1000 Peachtree Street, NE
Atlanta, GA 30309-4470
United States
404-498-8937 (Phone)
404-498-8956 (Fax)

HOME PAGE: http://www.frbatlanta.org/econ_rd/bios/wall.htm

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