WSJ article today mentions potential government participation in other finance companies such as bond insurers but also specialty finance companies. Given the political importance of student lending, I would imagine that SLM is also on the list. Not knowing the form of a government infusion, it is hard to tell if this will be positive for the stock. With regards to SLM the government has other levers to pull to make their life easier.
Having the hand of government tilting the scales makes investing in financials very difficult at present as there is no clear set of criteria regarding the basis for intervention and the form that intervention will take.
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