Sallie Mae: All Is Well, Really

Albert Lord, chief executive of student-loan giant Sallie Mae, sent a letter to shareholders today saying his company is being unfairly beaten up by Wall Street.

One year ago, Sallie Mae was trading at $50.09 per share. Today, Reston-based Sallie shares opened at $8.95 per share. The stock lost 32 percent of its value yesterday alone.

The company tried to sell itself last year in a $25 billion deal to private-equity titan J. Christopher Flowers, but the process was derailed by the credit crunch and disputes between the parties. U.S. law changes have also reduced potential returns on Sallie loans.

In his letter today, Lord wrote: "In the case of Sallie Mae, we believe markets are overlooking a number of indisputable facts. The fundamentals of our business are strong."

Lord points out 82 percent of Sallie loans carry a government guarantee, the company has $11 billion in cash and that third-quarter earnings will meet or exceed expectations.

"In summary," Lord writes, "Sallie Mae is a strong, stable and soundly-capitalized company."

-- Frank Ahrens

October 2, 2008; 11:03 AM ET  | Category:  business
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The whole student loan industry needs to fall flat on its face. They've taken enough money from the students and taxpayers in the the form of government guarantees. Mr. Lord deserves to lose the millions he took for shooting fish in a barrel. It's not an ethical business. The mission is ethical, but it has too many loopholes thanks to W.

Posted by: Anonymous | October 2, 2008 12:53 PM

Exactly--
A college education has a higher interest rate than a car or house... Really?? Obviously we have no plans to start being a global leader in innovation and education.
Pretty sure education has a much higher return to society.

Posted by: Jeff | October 2, 2008 1:24 PM

LET IT BE SAID HERE FIRST.

1) CEAN OUT YOUR BANK ACCOUNTS NOW.

2) DONT YOU KNOW WHY THEY INCREASE IT?? IT BECAUSE THE SMART ONES ARE TAKEING THIER MONEY AND RUNNING TO LOCAL BANKS AND CREDIT UNIONS.

3) WHY BECAUSE THE GOVERNEMNT AND WALL STREET WANT ALL MONEY THATS WHY..WHAT THEY PAY YOU 1 TO 3 PERCENT ON IT /> /> BUT GIVE IT OUT AT 8 9 12 15 20 PERCENT..WHATS FAR WITH THAT PICTURE AMERICANS??

THE GOVERNEMNT WANTS TO HAVE ONLY WALL STREET AS BANKS..NOW STOP THEM NOW. TAKE ALL MONEY OUT OF MARKETS AND WALLSTREET.LET THEM GO DOWN. THEN AND ONLY THEN CAN WE THE PEOPLE GET BACK TO GOING DOWN TO OUR LOCAL BANK AND SHAKING HANDS AND SITTING DOWN WITH FREINDS AND GETTING A LOAN..WITH NO HASSELS, NO WORRIE, WHY BECAUSE THEY THE LITTLE BANKS WILL HAVE CONTROL OF ALL MONEY AGAIN.. NOT WALL STREET..

AND THAT S WHY THESE SCUM BAG SENATER PUT IN THAT 250,000 GARRENTY..YA RIGHT!!

THE FDIC DOESNT HAVE THE MONEY ....THEY HAVE COME OUT AND SAID THEY WILL HAVE TO GO TO CONGRESS FOR HELP..VERY SOON..WHAT A JOKE...THE WORLD WILL END THE WORLD WILL END..BULL CRAP..

TAKE YOUR MONEY PEOPLE....

YOU HAVE BEEN WARN.

OVER 200 OF THE TOP ECCOMMIST SAY THE BAIL OUT WILL ONLT HURT MORE AVERAGE AMERICANS THAT THE RICH.

THEY SAY NO BAIL OUT.. LET THEM CLEAN THEMSELVE OUT LIKE ALL AMERICANS HAVE TO.. THET SAY LET THEM GO THROUGH BANKRUPY PERIOD........LIKE SO MANY AMERICANS HAVE TO EACH DAY AND SO FAR OVER 10 MILLION THIS YEARS ALONE HAS TO AND IS GOINFG THROUGH IT..BECAUSE OF THESE SCUM BAGS.

DAVID A BELANGER
VETERAN
FOR-AMERICA@HOTMAIL.COM
9786183105

P.S. I FOR GOT ONE IMPORTANT THING!!NOT THAT THEY( MEANING WALLSTREET FAT CATS YOU KNOW THE ONES THAT HAVE DONE ALL THIS CRAP) THEY HAVE OVER 3 TRILLION DOLLARS SITTING OVER IN THE CAMIN ISLAND, JUST SITTING THEIR!!!!!!!!!!!!!!

MAKE THEM USE THIER MONEY..TELL THEM TO USE ALL THE TRILLIONS YOU STOLE FROM AMERICANS.

AGAIN LET ME STRESS THAT THE GOVERMENT AND WALL STREET IS TRYING TO GET ALL MONEY.

TAKE ALL MONEY OUT NOTHING IS SAFE RIGHT NOW.. NOTHING.. AND I DONT CARE WHAT THEY SAY IT WOULD BE MONTHS EVEN YEARS BEFORE YOU GET YOUR SO CALLED FDIC INSURED MONEY...

RUN AMERICANS RUN AND TAKE ALL MONEY OUT..WE THE PEOPLE DO HAVE A VOICE WE HOLD THE MONEY THEY NEED IN THIER BANKS...WE THE PEOPLE DO..SO GET IT OUT OF WALLSTREET AND ALL BANKS..GO TO YOUR LOCAL SMALL BANK AND GIVE IT TO THEM AND PUT SOME UNDER THE PILLOW..YOU WERE WARN

Posted by: david,veteran | October 2, 2008 2:26 PM

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