CHICAGO - (02/18/05) -- JP Morgan Chase said Thursday itfiled suit in Delaware Chancery Court to dissolve the company'smulti-billion dollar student-loan venture with Sallie Mae. JPMorgan said it wants to protect the bank's brand and student loanbusiness. Under the eight-year-old deal, JP Morgan originates itsown branded student loans exclusively through the joint venture andSallie Mae purchases and services the loans. In its suit, JP Morgannotes at the time the venture was formed Sallie Mae was not in thebusiness of orginating its own loans. "Sallie Mae, however, hasdramatically changed its business model since the joint venture wasformed and has become an aggressive direct competitor to the (JPMorgan) brand that the joint venture was formed to promote," thebanking giant said. During the last two years Sallie Mae'sorigination volume has soared while the joint venture's volume hasstagnated. Sallie Mae was chartered as a government sponsoredenterprise in 1972 to create a secondary market for guaranteedstudent loans but since its privatization, completed just atyear-end, it has carved out a huge share, as much as 50%, of theorigination market, as well, in direct competition with many of thecredit unions and banks it was chartered to serve. Separately,Sallie Mae officials lobbied Pennsylvania state lawmakers for theirunsolicited $1 billion takeover offer of the Pennsylvania HigherEducation Assistance Agency during hearings Thursday before theHouse Apprpriations Committee.
-
National Australia Bank is adding a Pay By Bank option for near-instant payments, Italy is bringing open-loop payments to buses in Tuscany, and more.
1h ago -
DCI in Hutchinson, Kansas, is giving employees unsure about retirement the option to work part-time and gradually ease into the next phase of their lives.
2h ago -
McCargo will succeed Teresa Bryce Bazemore at what the former sees as a "transitional, pivotal moment" for the Federal Home Loan bank.
4h ago -
Federal Reserve Chair Jerome Powell said there have been "no decisions" on the controversial capital reform plan, but banks and others who have criticized the proposal are eager for an indication about what's next.
May 7 -
OakNorth Bank in London is eager to utilize the data it's collected from providing risk management software to American banks over the past five years. Its growth plans include eventually acquiring a charter here and making commercial real estate loans.
May 7 -
An independent examination of the Federal Deposit Insurance Corp. workplace culture revealed an atmosphere of sexual harassment, discrimination and misconduct at the agency and raised the need for significant reforms.
May 7