Fannie Mae, who has backed how many mortgages through the country, is now discussing selling tax credits to Goldman, (who got a bailout through AIG and other companies that got bailed out) in order to raise cash.
Correct me if I'm wrong, but isnt Fannie/Freddie backed by the US Government (I might be wrong here, not 2 companies I follow, but I thought that to be the case), and they are having trouble getting cash?
Lets follow the line..
Govt bails out dozens of companies which indirectly benefits Goldman. To do the bailing, they have to borrow funds, which then makes it more difficult to borrow for Fannie/Freddie. This results in Goldman becoming extremely profitable at the taxpayers expense. In order to then raise the funds that would otherwise be available if bailouts were not made, Goldman then buys tax credits from Fannie in order to lower their own taxbill, which puts more costs at the taxpayers back but allows Fannie to operate as if they were able to borrow had the government not borrowed to bailout other companies. I'm getting dizzy just following the 360 degree circle.
I'd say its time we start to investigate this circle for things like potential conflicts of interests and kickbacks.
Goldman Looks to Buy Fannie Tax Credits - WSJ.com
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