Warren Buffett on Berkshire Hathaway

Becky Quick from CNBC was told by Warren Buffett that Berkshire Hathaway (NYSE:BRK.A) has talked to five big financial firms about buying their tax credits; he can’t name any names due to confidentiality agreements.

Reports from the Wall Street Journal say Berkshire has joined with Goldman Sachs (NYSE:GS) in an effort to buy $3 billion in tax credits from the big government owned Mortgage Company Fannie Mae(NYSE:FNM). The Journal says the Treasury Department is “considering blocking any potential sale on the grounds that it wouldn’t benefit taxpayers since any money earned by Fannie would be offset when the buyers used the tax credits.”

Buffett has a long-standing relationship with Goldman, and Buffett’s reputation could help shield Goldman from criticism of a deal. Buffett has a long-standing relationship with Goldman, including his very profitable $5 billion investment in the firm at the height of the credit crisis.

The sale of tax credits by firms unable to use them is the result of a government program started in 1986 to encourage the construction of low income housing. To read more on this story go to cnbc.com.