Saturday, November 7, 2009

Goldman Can't Buy Fannie Mae Assets

. Saturday, November 7, 2009

By stockOzone team

The Obama administration on Friday denied Goldman Sachs's offer to buy millions of dollars in assets from struggling mortgage finance giant Fannie Mae.

The offer was not a good deal for taxpayers, according to an administration official. "In short, withholding approval of the proposed sale affords more protection of the taxpayers than does providing approval," the official said.

Goldman wanted to buy millions of dollars in Fannie Mae assets in part because it would provide a tax benefit. The discussion had focused on Fannie's low-income tax credits, which companies can accumulate and then deduct from their income tax bill or sell to other firms.

The Treasury Department, which weighed in on the matter because the federal government seized District-based Fannie Mae in September 2008, delivered the denial letter Friday afternoon. A Goldman Sachs spokesman declined to comment.

Disclosure: Author does not own any of the stocks discussed here.





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