Laserfiche WebLink
FEDERAL CREDIT AGENCIES: <br />Agencies of the Federal govermnent set up <br />to supply credit to various classes of <br />institutions and individuals, e.g., small <br />business firms, students, farmers, farm <br />cooperatives, and exporters. <br />FEDERAL DEPOSIT INSURANCE <br />CORPORATION (FDIC): <br /> A federal agency that insures bank <br /> deposits, currently up to $100,000 per tax <br /> identification account. <br />FEDERAL FUNDS RATE: <br /> The overnight rate of interest at which Fed <br /> funds are traded between banks. This rate <br /> is currently pegged by the Federal Reserve <br /> through open-market operations. <br />FEDERAL HOME LOAN BANKS <br /> (FHLB): <br />Government sponsored wholesale banks <br />(currently 12 regional banks) which lend <br />funds and provide correspondent banking <br />services to member commercial banks, <br />thrift institutions, credit unions and <br />insurance companies. The mission of the <br />FHLBs is to liquefy the housing related <br />assets of its members who must purchase <br />stock in their district Bank. <br />FEDERAL NATIONAL MORTGAGE <br />ASSOCIATION (FNMA or Fannie Mae): <br /> Chartered in 1938, FNMA is a federal <br /> corporation, government sponsored <br /> enterprise. It is the largest single provider <br /> of residential mortgage funds in the United <br /> States. Fannie Mae is a private <br /> stockholder-owned corporation. The <br /> corporation's pumhases include a variety of <br /> adjustable mortgages and second loans, in <br /> addition to fixed-rate mortgages. FNMA's <br /> debenture securities are highly liquid and <br /> widely accepted. FNMA, not the federal <br /> government, guarantees that all security <br /> holders will receive timely payment of <br /> principal and interest. <br /> <br />FEDERAL OPEN MARKET <br />COMMITTEE (FOMC): <br /> Consists of seven members of the Federal <br /> Reserve Board and five of the twelve <br /> Federal Reserve Bank Presidents. The <br /> resident of the New York Federal Reserve <br /> Bank is a permanent member, while the <br /> other Presidents serve on a rotating basis. <br /> The Committee periodically meets to set <br /> Federal Reserve guidelines regarding <br /> purchases and sales of Government <br /> Securities in the open market as a means of <br /> influencing the volume of bank credit and <br /> money. <br />FEDERAL RESERVE SYSTEM: <br />The central bank of the United States <br />created by Congress and consisting of a <br />seven member Board of Governors in <br />Washington, D.C., 12 regional banks and <br />about 5,700 commercial banks that are <br />members of the system. <br />GOVERNMENT NATIONAL <br />MORTGAGE ASSOCIATION (GNMA <br />or Ginnie Mae): <br /> U.S. Agency with full faith and credit of <br /> the U.S. Government. Ginnie Mae issues <br /> only mortgage-backed securities backed by <br /> the FHA, VA or FmHA mortgages. The <br /> term "pass-through" is often used to <br /> describe Giraffe Maes because it creates no <br /> derivative mortgage-backed securities. <br />LIQUIDITY: <br />The ability to be converted easily and <br />rapidly into cash. In the money market, a <br />security is said to be liquid if the spread <br />between bid and asked prices is narrow and <br />reasonable size can be done at those <br />quotes. <br />LOCAL GOVERNMENT <br />INVESTMENT POOL (LGIP): <br /> Funds fi'om political subdivisions <br /> aggregated for investment under the <br /> Interlocal Cooperation Act. Pools are <br /> structured as constant dollar funds or <br /> mutual funds. <br /> <br />City of San Marcos Investment Policy Page 10 <br /> <br /> <br />