Sallie Mae’s Incompetence

Sallie Mae recently announced its 4th Quarter results which contain some interesting information.  The biggest news is that Sallie Mae had a 96% drop in profits for the fourth quarter.  The drop in profits however does not relate to the actual core business which is made up of the loans it manages.  The loss was attributed to derivatives and hedging if I am reading the financial data correctly.

The reports also highlight Sallie Mae’s Student Loan holdings.  Sallie Mae is currently managing 142 billion dollars in student loans.

Despite the derivatives loss Sallie Mae was able to still turn a profit in the millions of dollars.

For more information on Sallie Mae’s reports check out

Bloomberg: Sallie Mae Fourth Quarter Results