Monday, November 9, 2009

Treasury Nixes Sale of Fannie Tax Credits to Goldman

Apparently, there is only so much humiliation the Treasury can take from the profiteers of Goldman Sachs. While the Treasury's investment in Fannie continues to bleed cash out of its eyeballs, Goldman Sachs has money coming out of its ears. The folks at Goldman have daily meetings trying to figure out what on earth they are going to do with all the money they keep making, and then during those meetings, they just keep coming up with more ideas on how to make more money! Like buying tax credits from Fannie. After all, there is no way in hell Fannie is ever going to make another penny and everyone hates to waste a good tax credit. Really this is all in the interest of tax efficiency.

Not so fast, says the Treasury. According to a letter Treasury sent Fannie, selling the $2.6 billion in tax credits would cost taxpayers more than the company would gain from the sale. So the Treasury has nixed the sale. Fannie claims to be reviewing the decisions, whatever that means. When the Treasury owns you, I'm not sure how much of a say you get in these matters. Poor Goldman is stuck writing a big check to the government. Although, I'm sure their tax guys already have a few more tricks up their sleeves.

1 comment:

Anonymous said...

Oh, my goodness! There's someone at Treasury who may be neither corrupt nor stupid? Say it ain't so! They must be found and removed immediately!