Fannie Mae’s awfully big advantages
Compared with ordinary mortal financial corporations, as government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac have numerous built-in competitive advantages conveyed on them by the Federal government, including:
Implicit credit subsidy: $6.5 billion annually.
Higher leverage (gearing): Unquantified.
Exemption from state and local taxes: $0.7 billion annually.
Exemption from SEC registration: $0.3 billion annually.
Treasury line of credit: [...]
