GO
Loading...

All Fired Up: Sallie Mae & Krispy Kreme

In a 24-hour period that saw heads roll in the corner offices of Starbucks and Bear Stearns, two other companies – Sallie Mae and Krispy Kreme – canned their bosses to somewhat less fanfare.

The student loan giant and doughnut maker have one important thing in common, according to Cramer: Both are broken. And neither can be salvaged, no matter who is in charge.

Cramer doesn't think it matters that SLM just brought in Anthony Terracciano, one of his all-time favorite turnaround artists. SLM's business has been crumbling ever since Congress approved profit cuts for its federal loans. But Cramer's wouldn't bet that on the business of federal student lending being profitable anytime soon. SLM would need to repackage its loans and sell them as bonds to get anywhere – but the default rate is too high for that. Its hands are tied.



Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
KKD
---
SLIM CPI NT
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.