Sallie Mae swings to 3Q loss of $344 million

[Lone_Star_Dem]

Source: Associated Press

WASHINGTON — SLM Corp., the large student lender whose buyout is imperiled, on Thursday said it swung to a third-quarter loss of $344 million, driven by losses in derivatives used to hedge against swings in interest rates.

Sallie Mae's quaterly loss, equivalent to 85 cents a share, compared with profit of $263 million, or 60 cents a share, in the third quarter of 2006.

The Reston, Va.-based company reported "core earnings" of $259 million, or 59 cents a share in the July-September period, compared with $321 million, or 73 cents a share. Core earnings exclude treatment for student loans bundled together as securities and derivatives, the complex financial instruments used as a hedge against interest-rate swings.

The student-loan provider said core net interest income was $664.3 million, up from $601.4 million a year ago.

Read more: http://www.chron.com/disp/story.mpl/chronicle/5206041.html

[eppur_se_muova]

1. Couldn't happen to a nicer bunch. nt

[backscatter712]

2. BURN FUCKERS!!!

Given all the lives you've destroyed through your usurious student loans (that you can't escape from through refinancing or even bankruptcy,) I hope every one of you fuckers ends up living in cardboard boxes on Skid Row!

[Larissa238]

6. Don't need no water let the m-fer burn......

By the time I'm done paying them, I will have paid almost $90,000.....

[smirkymonkey]

7. I owe the Bastards over 90K, by the time I'm done

(let's face it, I will never be done) I will have paid over 250K - biggest mistake of my life. :banghead:

[aquart]

3. They put the money in derivatives?

Jesus H. Christ. Isn't anyone going to outlaw that shit?

[Danieljay]

4. I guess outsourcing all their customer service reps to India hasn't helped.

I'm still not comfortable providing my financial information to someone half way round the world.

[high density]

5. It's so sad

Core net interest income is up $60m yet they manage to lose $334m because of their stupid speculation. I hate this company.