« previous next »
Pages: [1]   Go Down

Author Topic: Fannie Mae Tax Credit Decision Could Cost $5.2 Billion  (Read 988 times)

0 Members and 1 Guest are viewing this topic.

Offline thundley4

  • Hero Member
  • *****
  • Posts: 40571
  • Reputation: +2222/-127
Fannie Mae Tax Credit Decision Could Cost $5.2 Billion
« on: November 10, 2009, 08:47:01 AM »
Quote
Fannie Mae said Monday it may have to ask the government for more financial assistance because the company cannot sell $5.2 billion in tax credits.
 
The Treasury Department last week blocked the mortgage giant from selling about $2.6 billion in low-income housing tax credits to investors that included Goldman Sachs Group Inc. Because the investors could use the credits to reduce their own tax bills, Treasury said the sale would result in a loss of tax revenue greater than the savings to the government.
 
"We have said all along that we would make determinations based on what is in the taxpayers' interests," said Andrew Williams, a Treasury spokesman.
 
Fannie Mae requested $15 billion in financial aid last week after reporting a $19.8 billion quarterly loss, bringing the taxpayers' bill for the mortgage company's rescue to $60 billion.
 
Fannie said in a regulatory filing that it was evaluating whether it would have to take a charge in the current quarter to reflect the value of the now-worthless tax credits. If so, Fannie Mae's net worth would be reduced by that amount, and it would need more money to shore up its balance sheet.
CNSN

Let me get this straight. Treasury blocked the sale of tax credits, because it would have meant a loss of revenue to the Treasury.  So in effect those tax credits are now worthless, and Fannie is needing more money from the government, which the sale of those credits could have lessened?
Logged

Offline DumbAss Tanker

  • Hero Member
  • *****
  • Posts: 28493
  • Reputation: +1707/-151
Re: Fannie Mae Tax Credit Decision Could Cost $5.2 Billion
« Reply #1 on: November 13, 2009, 09:31:31 AM »
Amazingly circular reasoning, isn't it?  That's why I hate accountants.
Logged
Go and tell the Spartans, O traveler passing by
That here, obedient to their law, we lie.

Anything worth shooting once is worth shooting at least twice.

Offline Baruch Menachem

  • In a handbasket, heading to a warm destination
  • Hero Member
  • *****
  • Posts: 1019
  • Reputation: +37/-18
  • do the best you can with what you can
Re: Fannie Mae Tax Credit Decision Could Cost $5.2 Billion
« Reply #2 on: November 17, 2009, 08:40:04 PM »
What the circle was, was  a slow spiral down the drain of US financial market credibility.  Might as well stop the stupid even if it is too late, so the damage gets no worse.
Logged
An optimist sees the glass as half full, a pessimist sees the glass as half empty, an engineer sees that there is twice the glass required to contain the beer

My name is Obamandias, King of Kings, 
  Look on my Works, ye Mighty, and despair!

Offline DixieBelle

  • Administrator
  • Hero Member
  • *****
  • Posts: 12143
  • Reputation: +512/-49
  • Still looking for my pony.....
Re: Fannie Mae Tax Credit Decision Could Cost $5.2 Billion
« Reply #3 on: November 17, 2009, 08:49:35 PM »
my head hurts....
Logged
I can see November 2 from my house!!!

Spread my work ethic, not my wealth.

Forget change, bring back common sense.
-------------------------------------------------

No, my friends, there’s only one really progressive idea. And that is the idea of legally limiting the power of the government. That one genuinely liberal, genuinely progressive idea — the Why in 1776, the How in 1787 — is what needs to be conserved. We need to conserve that fundamentally liberal idea. That is why we are conservatives. --Bill Whittle

Offline Baruch Menachem

  • In a handbasket, heading to a warm destination
  • Hero Member
  • *****
  • Posts: 1019
  • Reputation: +37/-18
  • do the best you can with what you can
Re: Fannie Mae Tax Credit Decision Could Cost $5.2 Billion
« Reply #4 on: November 17, 2009, 10:25:13 PM »
Vote Chris Dodd and Barney Frank out of office, and the pain will go away
Logged
An optimist sees the glass as half full, a pessimist sees the glass as half empty, an engineer sees that there is twice the glass required to contain the beer

My name is Obamandias, King of Kings, 
  Look on my Works, ye Mighty, and despair!

Pages: [1]   Go Up
« previous next »