Sallie Mae Wants a Handout Too?
Someone remind me again why we need these "private" businesses which tuck away profits in the good times but come crying for taxpayer capital as soon as things go bad?
Sallie Mae Chief Financial Officer Jack Remondi said on the call: “Although we are awaiting a potential resolution of this issue from Washington, I want to be perfectly clear. We will not do business that jeopardizes the company’s liquidity position or franchise value.”
Note: I'm not saying the government shouldn't be involved in student lending. I think there's a great argument to be made that it's a vital enterprise, and should maybe be entirely run by a theoretical government agency that could make good, non-partisan decisions. (OK, get off the floor and stretch your over-laughed guts...)
But seriously, I see no reason that taxpayers should continue to play backstop for private companies when they need to suffer through the inevitable lean years. Don't wanna play by the market rules? Then get out of the game, and no free or low-cost taxpayer money for you. Want free or low-cost taxpayer money? Fine, then pay dividends back to the taxpayers.