Re: Bail-out for Sallae Mae? When ?
10-09-2008 07:22 AM
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?