phil from Edmond

Wall Street Breakfast: Must-Know News

Further to the proposed sale of tax credits. Why would Treasury approve the sale? Effectively, they would approve Fannie Mae to accept $0.80 (or whatever) for $1 dollar of tax credits. Since Treasury is funding Fannie Mae, through the conservatorship, where is the advantage to the Treasury in this transaction. Treasury reduces its contribution to Fannie Mae by $0.80 and loses $1 dollar from tax receipts.