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The great depression was the major reason for such a system to be put in place simply because private lenders weren’t investing in the home loans because of the stock market crash.
3. Both these two companies were privately owned and they sold shares to the public. Apart from them being privately owned these companies were and are still financially protected by the Federal government.
4. Through this protection by the Federal government, these companies had access to a line of credit through the U.S treasury.
5. Fannie Mae was also exempted from the state and local income taxes and also it was exempted from the Securities and the Exchange Commission oversight...
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