Report: Goldman Sachs looks to buy tax credits

NEW YORK (AP) - Wall Street giant Goldman Sachs Group Inc. is reportedly in talks to buy tax credits from Fannie Mae, a government-controlled mortgage financier.

The Wall Street Journal said in a story Monday that the credits, tied to incentives to boost investments in low-income housing, would allow Goldman to lower its tax bill.

A spokesman for Goldman Sachs declined to comment on the report.

Fannie Mae, which was taken over by the government last fall at the peak of the credit crisis, is still in a dire situation. It continues to need funding from the government and its operations are closely monitored by its regulator, the Federal Housing Finance Agency.

Because Fannie Mae continues to bleed cash and lose money, it has been unable to take advantage of the credits to reduce its tax burden.