01938cas a2200265 a 4500 AALejournalIMF000887 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849042 1018-5941 BD-DhAAL BD-DhAAL Garrett, John. Economic and Legal Considerations of Optimal Privatization : Case Studies of Mortgage Firms (DePfa Group and Fannie Mae) / John Garrett, Hans-Joachim Beyer, Claudia Dziobek. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Successful privatization must be accompanied by the complete removal of privileges and any public policy mission. Bank behavior changes rapidly as profit maximation replaces the bureaucratic objective function. Once privileges are granted, they are difficult to remove. Therefore, privatization is a one-time (nonreversible) operation. The German mortgage bank, DePfa, went through a carefully planned and lengthy privatization process that was successful. Fannie Mae, the U.S. mortgage firm, became a privately owned institution endowed with special privileges, which led to a quasi-monopoly position. This resulted in suboptimal financial sector performance. Fannie Mae's special privileges have proven resistant to reform efforts. Mode of access: Internet Beyer, Hans-Joachim. Dziobek, Claudia. IMF Working Papers; Working Paper ; No. 1999/069 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/069/001.1999.issue-069-en.xml IMF e-Library