Navient to Forgive $1.7B in Loans Under Settlement Over Predatory Lending

Financial Daily Dose 1.14.2022

January 14, 2022

Former top student loan servicing giant Navient has “reached a $1.85 billion deal with 39 states to settle claims that it had made predatory loans that saddled borrowers with crushing debts they were highly unlikely to repay.” Under the agreement, Navient will cancel $1.7 billion in “delinquent private student loan debts for nearly 66,000 borrowers and pay $95 million in restitution.” Most affected borrowers attended for-profit schools “that often have low graduation rates and poor job-placement records” - NYTimes and WSJ and MarketWatch and Law360

Monster Beverage Corp., the company “best known for its namesake energy drinks,” has struck a “deal to buy craft-beer and hard-seltzer company CANarchy Craft Brewery Collective LLC for $330 million.” The move is the latest in a series of plays by soda and alcohol companies into each other’s “turf in bids to spur growth” - WSJ

After shareholders raised concerns about the company and co-founder Bill Gates treated employees, Microsoft announced that it’s undertaking a review of its sexual harassment and gender discrimination policies. The move follows belated revelations about Gates’ behavior toward and relationships with female employees - NYTimes and WSJ and Bloomberg

Stocks fell on Thursday, following a drubbing of tech stocks and ushering in a new period of volatility that’s seen the S&P and Nasdaq struggling after a strong 2021 - NYTimes and WSJ and Bloomberg

Updates from Lael Brainard’s confirmation hearing for the Fed Vice Chair position, including her prediction that the Fed will “engineer a soft economic landing” as it worked to address persistently high inflation - NYTimes and Law360

Speaking of the big I . . . - WSJ

And of the Fed . . . - NYTimes and WSJ and Bloomberg

TPG shares rose some 15% on their first day of public trading—that despite a rough performance for stocks overall on Thursday - WSJ

Do you talk about Bruno? Because we sure don’t, a fact that I’m reminded of throughout the day in song from all three of my kids. Thanks, Lin Manuel - NYTimes

Stay safe, get boosted, and have a good weekend,



The Robins Kaplan Financial Daily Dose features top stories and latest news headlines in financial markets, banking, securities and technology topics.