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WaMu's terms amount to a premium to managed loans of about 17.2%.
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On Thursday the bureau proposed a rule that would allow it to supervise big student loan servicers, the companies that manage loans on behalf of borrowers and lenders.
So what is preventing a better outcome?Loan servicers, which manage loans on behalf of investors in mortgage-backed securities, may fear lawsuits alleging that borrowers have been treated too generously.
It has $51.5 billion of managed loans and 2004 profits of more than $900 million.
Morgan Stanley's board approved exploring a sale of its Discover credit-card unit, which with $50 billion in managed loans, accounted for 17% of net profits last year.
Total managed loans at the end of the period, however, decreased to $47.3 billion from $51.8 billion for the prior year.
But Cawley is growing far more dependent than his rivals on this technique: 75% of MBNA's managed loans are securitized, versus 43% for Providian.
At the end of 2007, for example, one-third of Capital One's $151 billion in managed loans had been sold as securities.
Bank One closed the year with $76.4 billion in total managed loans.
Her father is a vice president of the Los Angeles National Bank; he manages loans in its Flushing office.
The more you know about managing loans, the less you'll flip out at the mention of them.
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