m - NOVEMBER 7, 2009 Treasury Blocks the Sale of Tax...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
NOVEMBER 7, 2009 Treasury Blocks the Sale of Tax Credits by Fannie By NICK TIMIRAOS The U.S. Treasury blocked Fannie Mae's proposed sale of nearly $3 billion in low- income housing tax credits to Goldman Sachs Group Inc. and Berkshire Hathaway Inc. on Friday after concluding that the deal was too costly for taxpayers. The extraordinary move was the latest sign of tensions within the Obama administration over how to balance political and financial pressures resulting from the housing crisis. Fannie Mae had agreed to sell roughly half of its $5.2 billion tax-credit portfolio and had received approval to proceed with the sale from its federal regulator, the Federal Housing Finance Agency. Those credits are virtually worthless to Fannie because the company doesn't have any taxable income to offset, and it is forced to write down the value of those credits every quarter as their value declines. But Treasury Department officials blocked the deal after concluding that it would have
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/17/2012 for the course FINA 463 taught by Professor Tsyplakov during the Spring '10 term at South Carolina.

Page1 / 2

m - NOVEMBER 7, 2009 Treasury Blocks the Sale of Tax...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online