Skip to: Content
Skip to: Site Navigation
Skip to: Search
THURSDAY, NOVEMBER 26, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

Sallie Mae Chief Quits

Equity firm pressured loan giant CEO to step down, ease buyout

Share

(Newser) – The CEO of student loan giant Sallie Mae resigned unexpectedly yesterday in the midst of a $25 billion buyout by a private equity firm. The Wall Street Journal reports that Thomas J. Fitzpatrick was pressured out to stave off Congressional criticism of the buyout by J.C. Flowers and Co, which is taking the company private. The lender's CFO will take his place.

Flowers had initially promised to retain the company's staff, but apparently balked because of ongoing scrutiny into SLM's ties to college officials and suspect marketing practices. Fitzpatrick will receive a severance package worth as much as $32 million. Shares of the company were up in after-hours trading.

'
'
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

36 Stories

ANALYSIS

Rise in Mergers 
Signals Fresh Confidence 

Chief execs becoming more bullish about recovery prospects

Sep 29, 09 3:00 AM CDT
(Newser) - Mergers and acquisitions activity is still way down from pre-financial crisis levels, but a recent flurry of big deals suggests America's chief executives are regaining confidence in their own businesses. Recent mergers have involved strategic buys by big companies instead of the debt-fueled private equity buys seen a couple of... More »

MORE ABOUT:
private equity • Wall Street • mergers and acquisitions • merger • US economy • Xerox • financial crisis • Affiliated Computer Services

MARKETS

 Oil Prices Rise; Dow Up 91 

Low-volume session sees modest advances in energy, financials

Jun 29, 09 3:15 PM CDT
(Newser) - Stocks enjoyed modest gains today as a jump in oil prices lifted energy firms, the Wall Street Journal reports. Crude futures rose $2.33, to $71.49 a barrel; Exxon shares gained 2.39%. Financials also saw advances, led by Sallie Mae, which jumped 8.2% on new government terms... More »

MORE ABOUT:
Exxon • Sallie Mae • student loans • Dow Jones • Nasdaq • S&P 500 • oil prices

Fight Looms Over Plan to Give Loan Funds to Students

The administration wants to cut out private lenders, setting up a showdown

Apr 13, 09 8:49 AM CDT
(Newser) - President Obama's plans to end a subsidized student-loan program—diverting billions of dollars in profits for private lenders like Sallie Mae to scholarships for needy students—is prompting howls of protest from lenders and setting up a Congressional showdown, the New York Times reports. The Congressional Budget Office estimates that... More »

MORE ABOUT:
education • Sallie Mae • student loans • Congressional Budget Office • Pell grants • student loan reform • Obama administration

36 Stories


Business  •  US 
TwitterFollow @Newser on Twitter

 
private equity • Sallie Mae • student loans • merger • loans • acquisition • Thomas J. Fitzpatrick • J.C. Flowers and Co • student

from our news partners