First Marblehead gets Citigroup for $1.68B loan package
Tuesday October 11, 3:06 pm ET
First Marblehead Corp. is going forward with a planned $1.68 billion student-loan securitization, after replacing underwriter Bank of America Corp., which pulled out following revelations that one of its former employees received gifts from the Boston company's chief executive.
First Marblehead, which provides private student loan services to banks, said Citigroup Inc. (NYSE: C - News) is underwriting the student-loan securitization. The securitization, which will close on or about Oct. 12, involves private student loans by First Marblehead's National Collegiate Student Loan Trust 2005-3.
First Marblehead's former chief executive Daniel Meyers resigned abruptly Sept. 29, after it was disclosed he gave $32,000 in gifts to a former Bank of America official. Charlotte, N.C.-based Bank of America (NYSE: BAC - News) pulled out of the transaction in early October.
First Marblehead (NYSE: FMD - News) said Meyers told the company he purchased the gifts with his own money, not company funds.
First Marblehead replaced Meyers with Jack L. Kopnisky, who recently joined the company as president and chief operating officer.
Published October 11, 2005 by the Boston Business Journal
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