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Sallie Mae Drops $900M Lawsuit

Move helps struggling student loan provider obtain $31B in financing

By Jim O'Neill, Newser User

Posted Jan 29, 2008 9:31 AM CST

(Newser) – Beleaguered student loan provider Sallie Mae yesterday dropped its $900 million lawsuit against the onetime suitors who bailed on a $25.3 billion buyout after the credit crunch caused would-be investors to walk away, reports the Washington Post. By agreeing not to seek the penalty... Read full story »

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private equity • Sallie Mae • student loans • Bank of America • lawsuit • credit crisis • JC Flowers and Co • SLM Corp • JPMorgan Chase

More Newser Stories

Sallie Mae Sues Spooked Suitors

Student-loan giant refuses to renegotiate $25B buyout deal

(NEWSER) - College student lender Sallie Mae is suing a group of private equity firms and banks that are backing out of a $25-billion buyout deal. The group—J.C. Flowers & Company, Friedman Fleischer & Lowe, JP Morgan Chase and Bank of America—had set a deadline of today for negotiating new terms, or they'll walk away from the deal, despite a $900-million breakup fee, reports the New York Times. More»

Loan Giant Sallie Mae Goes Private

Nation's largest student lender is sold for $25 billion

(NEWSER) - A group of investors is buying student lending giant Sally Mae for $25 billion, even as Capitol Hill debates reducing federal subsidies for student loans. The company—which began as a quasi-public agency—will be taken private by Bank of America, JPMorganChase, and private equity houses J. C. Flowers and Friedman Fleischer & Low. More»

$25B Sallie Mae Buyout on the Rocks

Credit market implosion leaves buyer looking for the door

(NEWSER) - Sallie Mae doesn’t look like such a bargain at $25 billion anymore, and J.C. Flowers & Co. is trying to renegotiate—or escape—its deal to acquire the student lender, citing the credit market implosion and legislation to reform student loan practices. It’s the kind of deal once considered unbreakable, the Wall Street Journal says, but private equity is in disarray. More»

Morgan Stanley, WaMu Edge Closer to Deals

WaMu readies for sale while Morgan mulls merger options

(NEWSER) - Two of the biggest financial institutions in the midst of the market turmoil are moving closer to hammering out deals. Washington Mutual's suitors are believed to include Citibank, JP Morgan and Bank of America, insiders tell Bloomberg, while Morgan Stanley and Wachovia have stepped up merger talks, reports the New York Times. Morgan is also in separate talks with the China Investment Corporation. More»

BofA Could Partner With China Fund on Lehman Bid

Bankruptcy remains possibility for firm

(NEWSER) - Bank of America could partner with financial investor JC Flowers and a Chinese sovereign wealth fund on a bid to rescue Lehman Brothers, the Financial Times reports. The hobbled investment bank had resisted selling itself, but is now eagerly seeking suitors before the last of its goodwill on Wall Street dries up. More»

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Sallie Mae Drops $900M Lawsuit

Move helps struggling student loan provider obtain $31B in financing

private equity • Sallie Mae • student loans • Bank of America • lawsuit • credit crisis • JC Flowers and Co • SLM Corp • JPMorgan Chase

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More Newser Stories

Sallie Mae Sues Spooked Suitors

Student-loan giant refuses to renegotiate $25B buyout deal

Loan Giant Sallie Mae Goes Private

Nation's largest student lender is sold for $25 billion

$25B Sallie Mae Buyout on the Rocks

Credit market implosion leaves buyer looking for the door

Morgan Stanley, WaMu Edge Closer to Deals

WaMu readies for sale while Morgan mulls merger options

BofA Could Partner With China Fund on Lehman Bid

Bankruptcy remains possibility for firm

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