Sallie Mae, Freddie Mac, and Fannie Mae

Does anybody know of any public good that has come from the privatization or these previous financial arms of the government? Now I read that Sallie Mae, which is about to be taken over by another company, has been bribing universities to make low cost government loans available to students.

Would the other two companies have been involved in their financial shenanigans if they were not reengineered to be profit oriented?

2 comments so far

  1. CollegeLoanSearch on

    The private equity industry typically searches for an exit point to monetize any value created. How do they create value? Simple, by de-coupling business lines within Sallie Mae and selling independantly. Sallie is a vertically integrated loan operation, all those distinct pieces are unofficially on the block now. Not the mention a host of ancilliary business lines that Sallie Mae has created over the years.

    Sallie Mae will cease to exist in it’s present form over the next few years.

    http://college-loan-search.blogspot.com

  2. themaddoctor on

    The explicit idea is to make good things available to folks like homes and college. The real gig is more money and power for the ruling financial overclass. Now they can speculalte and take irresponsible risks and if it blows up, then saddle the taxpayers with the bill.


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