This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

First Marblehead Bank Unit Sells Education Loans

BOSTON (AP) ¿ First Marblehead Corp., which packages students loans for sale to investors, said on Thursday that a bank subsidiary that it's considering selling has completed the sale of its remaining portfolio of private education loans.

Union Federal Savings Bank sold the loans to a newly formed trust affiliated with Boston-based First Marblehead. The company said the bank no longer carries any private education loans on its balance sheet.

The loans had an aggregate carrying value of about $6.6 million as of Sept. 30, and Union Federal Savings Bank received sale proceeds of about $3.7 million. Union Federal's equity capital after the sale stood at about $44.4 million.

First Marblehead announced at its annual shareholders meeting on Monday that it had begun examining strategic alternatives for Union Federal, including a potential sale.

Shares of First Marblehead fell 8 cents, or about 3.6 percent, to $2.17 in opening trading. The stock has traded in a 52-week range of 58 cents per share to $2.93.

First Marblehead receives fees for helping banks package their private student loans into bonds, which are then sold to investors. Private student loans aren't guaranteed by the government and carry higher interest rates. Financial turmoil that peaked last fall has recently left investors wary of buying the bonds as defaults among student loans have risen.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FMD $6.30 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs