Federal Agencies

Posted in Finance, Accounting and Economics Terms, Total Reads: 248
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Definition: Federal Agencies

These refer to special Governmental organisations which are set up for certain specific purposes. This includes management of resources, financial oversight of corporates, national security issues. These special organisations are most commonly created by means of some legislative action.


However, there are instances where they have been set up by Presidential order as well. The Director, who heads these organisations, are selected by Presidential appointment.


In the context of finance, federal agencies worthy of mention are Federal Deposit Insurance Corporation(FDIC), Government National Mortgage Association(GNMA), Fannie Mae, Freddie Mac to name a few.


FDIC and GNMA have their operations explicitly backed by the U.S. Treasury. Fannie Mae, Freddie Mac are only provided with an implied guarantee from the U.S. Treasury.

 

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