Monday, August 06, 2007

Earle Goode To Make $3.3 Million From Sale Of Sallie Mae

Gov. Mitch Daniels' Chief of Staff Earl Goode is poised to pocket more than $3.3 million when the Board of Directors of Sallie Mae on which he sits meets next week to approve its sale. "When the directors of Sallie Mae meet next week to consider a $25 billion offer to buy the student loan giant, they will be voting on a transaction that will benefit the company, and also themselves — significantly," Inside Higher Ed writes.

Once upon a time, Sallie Mae was a public benefit corporation so some are wondering how folks could be making so much money from it. “Sallie Mae was built to serve a public purpose, of providing student loans,” said Robert Shireman, executive director of the Project on Student Debt and a longtime observer of the student loan programs. “It was set free and no one really knew whether the federal government got a good deal or not. This level of profiteering off the corporation suggests that ultimately the deal that was struck may well have undercompensated taxpayers.”

It looks like the folks at Sallie Mae are profiteering off what was supposed to be a public benefit corporation just like the folks did with the old Blue Cross Blue Shield companies. Isn't that how the folks at Wellpoint became multi-millionaires?

Hat tip to Indiana Daily Insight.


Anonymous said...

For comparison sake, remember Chrysler sold for around $ 8 billion. Want to bet on whether
Goode resigns, somehow gets the money deferred into next year and immediately tries to become a resident of Florida or Tennessee to avoid paying any Indiana income taxes?

Anonymous said...

So what!!!!

3.3 million is chump change to Earle Goode. Mr. Goode was a millionaire years ago...he did not need to even take a government job.

Unknown said...

Is one to believe that it is mere coincidence that 95% of IU and Purdue Loans go to Sallie Mae?

Governor's office appoints the Trustees . . . yada yada yada.

Does it pass the smell test?