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MORTGAGE FINANCING
Fannie Mae might seek more U.S. aid
Fannie Mae might have to ask the government for more financial assistance because it cannot sell $5.2 billion in tax credits, the District-based mortgage financier said Monday.
The Treasury Department last week blocked Fannie Mae from selling about $2.6 billion in low-income housing tax credits to investors that included Goldman Sachs Group. Treasury said the sale would result in a loss of tax revenue greater than the savings to the government.
"We have said all along that we would make determinations based on what is in the taxpayers' interests and we denied the request," said Andrew Williams, a Treasury spokesman.
Fannie Mae requested $15 billion in financial aid last week after reporting a $19.8 billion quarterly loss, bringing the taxpayers' bill for the mortgage company's rescue to $60 billion.
Fannie said in a regulatory filing that it was evaluating whether it would have to take a charge in the current quarter to reflect the value of the now-worthless tax credits. If so, Fannie Mae's net worth would be reduced by that amount, and it would need more money to shore up its balance sheet.
-- Associated Press
INVESTING
T. Rowe Price buys stake in UTI Asset
Mutual fund manager T. Rowe Price Group said it is buying a 26 percent stake in Indian asset manager and mutual fund company UTI Asset Management and UTI Trustee for about $138 million.
