Fannie Mae’s Sale of Tax Credits Is A Bad Deal, Treasury Says

Fannie Mae’s request to sell $2.6 billion in low-income housing tax credits would be a bad deal for taxpayers and won’t be allowed, the U.S. Treasury said.

The government decided the deal would cost taxpayers more than Fannie Mae would gain from the sale, according to a letter sent to the Washington-based company yesterday. The Treasury was considering whether to let Goldman Sachs Group Inc. buy credits, which could be used to lower the firm’s tax bill.