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Home » CBO: Fair-Value Accounting Ups GSEs’ Costs
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CBO: Fair-Value Accounting Ups GSEs’ Costs

June 10, 2011
In light of Fannie Mae and Freddie Mac’s federal conservatorship status and the resulting control by the Treasury Department, the two GSEs are “effectively part of the government” and their operations should be reflected in the federal budget, according to the Congressional Budget Office.CBO has concluded that using a fair-value approach to estimate Fannie and Freddie’s subsidy costs is the best way to give Congress and taxpayers the most accurate accounting information.
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