Warren Not Satisfied With Sallie Mae Explanation
Sen. Elizabeth Warren isn’t letting up on Sallie Mae and how the Newark, Del.-based student lender may be benefitting from an inexpensive Federal Home Loan Bank credit line. The Massachusetts Democrat and consumer protection champion sent Sallie Mae President/CEO Jack Remondi a letter Friday that compared the lender’s use of the funds to how big banks benefitted from TARP funds.
When Warren served as chair of the Congressional Oversight Panel for TARP, she said she learned that government cash infusions into private companies, along with direct and indirect subsidies, can raise complex questions about which activities are being supported. Additionally, she said she learned to question whether companies receiving assistance are being entirely forthright in its description of the impact of such support.