I think Sallie Mae was trying to position itself for sale. They could boost the price by increasing perceived profits. They must have known that the risk in the portfolio was increasing and that they needed more, not less reserve. One assumes that the liability would have become clear with the new owners.
Sallie Mae
I think Sallie Mae was trying to position itself for sale. They could boost the price by increasing perceived profits. They must have known that the risk in the portfolio was increasing and that they needed more, not less reserve. One assumes that the liability would have become clear with the new owners.