Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Market
Sallie Mae Plans To Split Into Two Companies
WASHINGTON (5/31/13)--Student-loan firm Sallie Mae, the largest U.S. private lender to students, announced Wednesday it intends to split itself into two companies--an education-loan management business and a consumer-banking operation.

In 2010, after the U.S ended a program that allowed institutions such as Sallie Mae to originate federally guaranteed student loans, the company realigned its business to concentrate on private originations (The Wall Street Journal May 29).

Salle Mae continues to manage a big portfolio of the federally guaranteed loans, called Federal Family Education Loan Program loans, which generate income and cash flow, the Journal said. 

Ninety-five percent of Sallie Mae's assets will be owned by its education-loan management business.

Sallie Mae also named Chief Operating Officer John F. Remondi as CEO of the education-loan management company, effective immediately. He succeeds CEO Albert L. Lord, who accelerated his retirement plans.

Remondi served as president and chief operating officer since 2011. Prior to that, he was vice chairman and chief financial officer.
RSS print
News Now LiveWire
.@CFPB obtains $92M in debt relief from Colfax Capital Corp. http://t.co/QPZAeCAcy2 See also: http://t.co/Kjf4HHkINW
25 minutes ago
Julian Castro was sworn in as 16th secretary of @HUDgov Dept. of Housing and Urban Development Mon.
34 minutes ago
.@CUNA's Chief Economist @SchenkMike talks consumer confidence--at highest levels since 2007 w/ @TheStreet @JoeDeaux http://t.co/JyoYQmhAxc
38 minutes ago
RT @CUNA: .@CUNA's Jeremy Dalpiaz congratulates @reppittenger on reg relief bill consideration after @FinancialCmte markup http://t.co/9JMG…
43 minutes ago
Hensarling: "Post Dodd-Frank we've seen community banking wither on the vine under regulatory burden, w/ costs passed to low income buyers"
1 hours ago