Indeed, one of the nation's largest thrift institutions, IndyMac, had recently collapsed under the weight of distressed mortgages, and investors continued to harbor doubts about the condition of the governmentsponsored enterprises (GSEs) Fannie Mae and Freddie Mac, despite the approval by the Congress of open-ended support for the two firms.
What are the necessary components of a Banking Union? To our mind, a Banking Union requires a Single Supervisory Mechanism (SSM) and a Single Resolution Mechanism (SRM). The Single Supervisory Mechanism A lot of progress has been made on the SSM. Last month, the EU legislature gave the final green light to the Regulation.