Goldman Sachs Group intends to purchase millions of dollars of tax credits from Fannie Mae, the government-controlled mortgage giant, but the US Treasury is against the deal, reported The Wall Street Journal.
A sale is expected to bring some much needed financial respite to Fannie Mae.
If the deal succeeds, it will be able to unload credits that are weighing on its balance sheet and forcing it to take losses.
But the administration is against of approving the deal that would help Goldman to reduce its tax bill. Andrew Williams, spokesman of treasury, said: “Treasury is reviewing and will not let it proceed unless it is clearly in the taxpayers’ interest.”
Michael DuVally, spokesman at Goldman Sachs, said: “Fannie Mae is owned and controlled by the federal government, who wouldn’t confirm the company was in talks with Fannie about the credits. The only basis on which approval for any transaction would be given would be if it was clearly in the taxpayers’ best interest,” reported the newspaper.
