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.
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