The Treasury has blocked Fannie Mae's proposed sale of nearly $3 billion in low-income housing tax credits to Goldman Sachs Group Inc. and Berkshire Hathaway Inc. after concluding that the deal would lose too much money for taxpayers.

The proposed sale would have resulted in a loss of tax revenues that would be greater than the savings to the federal government had it allowed the sale. "In short, withholding approval of the proposed sale affords more protection of the taxpayers than does providing approval," an administration official said.

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