Established Contributor
jesslyn
Posts: 945
Registered: ‎06-13-2008
Re: Bail-out for Sallae Mae? When ?

I'm not aware of any bail out given to Sallie Mae.  I'm interested in hearing about one.

 

Sallie Mae was begun as a government sponsored enterprise in the 1970's.  It privatized itself into a publicly traded corporation beginning in 1997.  They've generally been a very lucrative business because of the government's subsidies for student loans--SM has benefited most from these.  The last news I really knew about SM was when the deal for JP Morgan Chase to purchase SM fell through in late 2007--and they blamed that on the tightening of the credit markets and the WSJ called it the end of the mega deal.  I think I read somewhere that they did get some financing of BoA, but I didn't read that as a bail out.

 

Am I missing something?