Wednesday, November 25, 2009
Vampire Squid Loses One
"The US Treasury blocked Fannie Mae's proposed sale of nearly $3 billion in low-income housing credits to Goldman Sachs Group Inc. and Berkshire Hathaway Inc. after concluding the deal would lose too much money for taxpayers. The proposed sale would have resulted in a loss of tax revenue that would have been greater than the savings to the federal government had it allowed the sale. ... The blocked sale demonstrates the political and policy challenges facing the US as it looks to conserve both companies capital while advancing larger policy and political goals", my emphasis, Nick Timiraos at the WSJ, 7 November 2009, link: http://online.wsj.com/article/SB125754828200334693.html.
Amazing. Uncle Sam did some cost-benefit analysis to Vampire Squid's detriment. Heads should roll at Treasury over this.