Subtitle E Government-sponsored Enterprises SEC. 13501. FINANCIAL SAFETY AND SOUNDNESS OF GOVERNMENT-SPONSORED ENTERPRISES.16 (a) DEFINITION. -- For purposes of this section, the terms "Government-sponsored enterprise" and "GSE" mean the Farm Credit System (including the Farm Credit Banks, Banks for Cooperatives, and Federal Agricultural Mortgage Corporation), the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Student Loan Marketing Association. 1656 1655 The statement of managers accompanying the conference report on the Budget Enforcement Act explains the state of the law prior to enactment of that Act: Current law VIII. GOVERNMENT SPONSORED ENTERPRISES Congress has created several Government-sponsored enterprises or GSEs to help make credit more reliably available to farmers, homeowners, colleges, and students. Through federal charters provided in statute, GSEs are privately owned and operated, limited in their activities to specific economic sectors, and given certain benefits that help them accomplish their goals. Due to the public missions described in the charters of these entities, the Government does have an interest in the activities of the GSEs. While there is no explicit Federal backing for the GSEs, in 1987, the Government infused significant additional resources into the Farm Credit System when the system had financial difficulties. This Government financial assistance to a GSE and the problems of the Savings and Loan sector have generated increased interest in Congressional oversight of the GSES. H.R. CONF. REP. No. 101-964, 101st Cong., 2d Sess. 1,166 (1990). 1656 Note that section 3(8) of the Congressional Budget Act provides a different definition of "Government-sponsored enterprise" for the purposes of that Act. See supra pp. 17-18. (Section 13112(a)(2)(A) of the Budget Enforcement Act amended section 3(8) (1) The Department of the Treasury shall prepare and submit to Congress no later than April 30, 1991, a study of GSEs and recommended legislation. (2) The study shall include an objective assessment of the financial soundness of GSES, the adequacy of the existing regulatory structure for GSEs, the financial exposure of the Federal Government posed by GSES, and the effects of GSE activities on Treasury borrowing." 1657 1656 (...continued) to read as it does now. See supra 624.) The statement of managers accompanying the conference report on the Budget Enforcement Act explains this subsection: House bill Section 13501(a), of the House bill defined GSES for this legislation Senate amendment The Senate had no similar provision. Conference report The conference report adopts the House language except that it deletes the reference to the Farm Credit Insurance Corporation which is an on-budget entity. H.R. CONF. REP. No. 101-964, 101st Cong., 2d Sess. 1,166 (1990). 1657 The statement of managers accompanying the conference report on the Budget Enforcement Act explains this subsection: House bill Subsection (b) mandates a Treasury study on the financial safety and (c) CONGRESSIONAL BUDGET OFFICE STUDY. - (1) The Congressional Budget Office shall prepare and submit to Congress no later than April 30, 1991, a study of GSES. (2) The study shall include an analysis of the financial risks each GSE assumes, how. Congress may improve its understanding of those risks, the supervision and regulation of GSEs' risk management, the financial exposure of the Federal Government posed by GSES, and the effects of GSE activities on Treasury borrowing. The study shall also include an analysis of alternative models for oversight of GSEs and of the costs and benefits of each alternative model to the Government and to the markets and beneficiaries served by GSEs.1658 soundness of GSES, the adequacy of the existing regulatory structure for Senate amendment Section 12254(a)(1) of the Senate amendment contained an essentially identical provision. Conference report The conference report accepts the House provision but expands the scope of the Treasury study to analyze the impact of GSE activities on Treasury borrowing. H.R. CONF. REP. No. 101-964, 101st Cong., 2d Sess. 1,166-69 (1990). 1658 The statement of managers accompanying the conference report on the Budget Enforcement Act explains this subsection: House bill Subsection (c) mandates a Congressional Budget Office study on GSEs due to Congress no later than April 30, 1991. The study will includes an analysis of the financial risks each GSE assumes, how Congress may (1) For the studies required by this section, each GSE shall provide full and prompt access to the Secretary of the Treasury and the Director of the Congressional Budget Office to its books and records and other information requested by the Secretary of the Treasury or the Director of the Congressional Budget Office. (2) In preparing the studies required by this section, the Secretary of the Treasury and the Director of the Congressional Budget Office may request information from, or the assistance of, any Federal department or agency authorized by law to supervise the activities of a GSE 1659 1658(...continued) improve its understanding of those risks, the supervision and regulation of Senate amendment The Senate amendment contains a mandate for a similar study. Conference report The conference report accepts the House language with the scope expanded to include an analysis of the effects of GSE activities on Treasury borrowing. H.R. CONF. REP. No. 101-964, 101st Cong., 2d Sess. 1,167 (1990). 1659 The statement of managers accompanying the conference report on the Budget Enforcement Act explains this subsection: House bill Section (d) provides the Treasury and the CBO full access to GSE books and records and other information as requested by the Secretary of the Treasury or the Director of the Congressional Budget Office. This subsection also allowed the Secretary of the Treasury and the Director of the Congressio |