02 Nov 2009

I’m Neither Smart Nor Devious Enough to Work for Goldman Sachs

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What the heck does this even mean?

Goldman Sachs Group is in talks to buy millions of dollars of tax credits from Fannie Mae, but the U.S. Treasury could block the deal, The Wall Street Journal reported on Sunday.

Goldman hopes to win approval this week, but the administration is wary about approving a deal that would help the bank reduce its tax bill, the Journal reported on its website.

“Treasury is reviewing and will not let it proceed unless it is clearly in the taxpayers’ interest,” Treasury spokesman Andrew Williams said, without providing further comment or details.

Somebody please explain this to me. E.g. can I sell Goldman Sachs my child tax credit? But I would insist on getting at least $1001 for it, and presumably they would only buy it for less than $1000.

So the only thing I can figure is that this either has to do with present value accounting and a dumb tax regulation, OR Fannie is going to sell something for less than it’s worth, and then Goldman will return the favor (diluted) to the people who signed off on the dumb sale.

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