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 reported Monday 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. Its shares rose $1.46 to $171.63 in premarket trading, while Fannie Mae shares were stead ay $1.08.

Goldman has quickly recovered from the peak of the credit crisis last fall and is again reporting multibillion dollar quarterly profits. The New York-based investment bank earned $3.03 billion during the third quarter.

Goldman has been under the microscope for its resilience as stock and credit markets bounce back faster than the consumer banking sector and the broader economy.

It received $10 billion in government aid last fall and changed its regulatory status to access government funding. It quickly repaid the $10 billion this year as its profits bounced back.