The Quasi World of the Federal Government

The US government is becoming a government of quasi-governmental agencies, those that are hybrids between governmental agencies and private corporations. Some scholars have argued that this "sector blurring" is not only inevitable but desirable. Congress created these ambiguities in settin...

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Bibliographic Details
Published in:The Brookings review 1988-07, Vol.6 (3), p.23-27
Main Author: Seidman, Harold
Format: Article
Language:English
Subjects:
9550
Accountability
Business management
Commercial regulation
Corporations
Directors
Federal
Federal budgets
Federal government
Federal law
Government
Government agencies
Government sponsored enterprises
Government subsidies
Mortgage loans
Private sector
Privately held corporations
Public administration
Public sector
Public sector organizations
United States government
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Summary:The US government is becoming a government of quasi-governmental agencies, those that are hybrids between governmental agencies and private corporations. Some scholars have argued that this "sector blurring" is not only inevitable but desirable. Congress created these ambiguities in setting up the Federal National Mortgage Association (FNMA) and similar agencies. These agencies have exploited their ambiguous legal status to reduce their accountability. For example, when the government told FNMA to increase inner-city mortgage purchases, the agency argued that it could not do so because it was a private organization with a duty to stockholders. When New York State tried to make FNMA pay interest on escrow funds, the agency said it was exempt because it was a federal agency. The federal government must assume its responsibility for these agencies by providing essential public accountability and control.
ISSN:0745-1253
2328-2959
DOI:10.2307/20080040