CBO examines how recapitalizing Fannie Mae and Freddie Mac through administrative actions would affect such factors as CBO’s budget projections and cash flows between the two enterprises and their shareholders, including the Treasury.
Banking and Capital Markets
To explore how changes to financial regulation might affect the federal budget, CBO analyzed three illustrative policies. The agency found that the policies’ largest budgetary effects would stem from macroeconomic feedback. Watch the narrated presentation.
CBO describes the procedures it uses to develop a market-based estimate of the cost of new U.S. commitments to the International Monetary Fund that reflects the small risk that the IMF could incur large losses.
CBO finds that Ex-Im Bank’s credit programs would generate a budgetary cost using fair-value accounting—as opposed to savings under the current approach for measuring costs—because it more fully accounts for risk the government takes on.