BANKING & FINANCE - Nov. 22, 1995
<i> Times Staff and Wire Reports</i>
Sallie Mae Shares Rise: Shares of the Student Loan Marketing Assn. rose 4% after a favorable court decision followed by at least two investment-rating upgrades on Wall Street. The congressionally chartered, shareholder enterprise, known as Sallie Mae, won a key victory in the first round of what could be a running legal battle with the Department of Education. U.S. District Judge Stanley Sporkin ruled that the department may not charge Sallie Mae an offset fee on the student loans it uses as assets to back securities. At the same time, however, Sporkin upheld the constitutionality of the existing federal offset fee on student loans acquired by the company. Sallie Mae stock rose $2.75 to close at $66.25 on the New York Stock Exchange.
