- Markets Finally Get Greek Deal —So Where's the Rally?
- 'Mortgage Deal from Hell' Hurts Sound Borrowers: Bove
- Zynga and Hasbro Announce Toy-Making Partnership
- Activision Beats on Earnings, Raises Dividend
- Fidelity: 401(k) Balances Little Changed Over 2011
- Are Young American Workers a 'Lost Generation'?
- Westminster’s Most Successful Dog Breeds
- Greek Political Leaders Agree On Austerity Reforms
- Robo-Deal Is All About Lowering Mortgage Principal
- Victor Cruz ‘Understands’ Gisele's Super Bowl Frustrations
- Tamminen: The United States of India
- Unusual Volume: Taleo Jumps After Oracle's $1.9 Billion Offer
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
- So Now You Can’t Give Microsoft Away?
- Robo-Deal Is All About Lowering Mortgage Principal
- Groupon Needs More Disclosure: Analyst
- CEO to CEO: Taking a Job at a Startup vs. a Public Company
- Farr: Money, Jobs and Politics — We're Still in a State of Risk
MOST SHARED
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Investor Optimism At Highest In One Year: Survey
- Markets Get Greece Deal, So Where's the Big Rally?
- How to Get Your Name on the Bathroom Wall 4-EVER
- Indonesia Unexpectedly Cuts Rate to Seek Growth
- Kodak to Stop Making Cameras to Cut Costs
- Robo-Deal Is All About Lowering Mortgage Principal
- The Euro Still Has Room to Rise: Strategist
- Greeks Burn German Flags: Do They Have a Point?
MOST POPULAR
HOT ON FACEBOOK
Administration Rejects Plan to Buy Fannie Mae Credits
Text Size 
The New York Times
The Obama administration on Friday rejected a proposal by Goldman Sachs to buy as much as $1 billion in tax credits from Fannie Mae, saying the deal would have amounted to a net loss for taxpayers.
“It is our view that the proposed sale would result in a loss of aggregate tax revenues that would be greater than the savings,” an administration official said on Friday.
Goldman Sachs [GS
Loading...
()
] had proposed to pay cash for Fannie Mae’s [FNM
Loading...
()
] tax credits, which are tied to investments in affordable housing but which the government-controlled mortgage-finance company cannot use because its losses have wiped out any tax liability for the foreseeable future.
Goldman executives had argued that the deal would provide much-needed capital to Fannie Mae, which it could use to finance additional low-income housing. Fannie Mae was bailed out by the government and put into a conservatorship in September 2008, and the government has propped it up with nearly $50 billion since then.
On Thursday, the company announced that it lost an additional $19 billion in the third quarter and would seek another $15 billion from the government.
Treasury officials said the Goldman proposal would have reduced the government’s costs on Fannie Mae, but that it would have drained even more revenue as Goldman and perhaps other investors used the tax credits to offset their profits.
“Withholding approval of the proposed sale affords more protection of the taxpayers than does providing approval,” the official said.
- Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
- Entrepreneurs have increasingly been buying back their companies over the last three years.
- Where are the best city locations for singles to take the online dating plunge?
- A Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
- Here’s a look at the woman behind the newest collectible toy that kids love.
- Grab a brew—or not—and click ahead to experience the world’s most highly rated beers.
Data is a real-time snapshot *Data is delayed at least 15 minutes
