Student Loan - Loans and Debt Consolidation

FIRST MARBLEHEAD SAYS OTS ENDS CEASE DESIST ON UNIT REUTERS

UPDATE 1-First Marblehead says OTS ends cease & desist on unit

* Says continues to examine strategic alternatives

* Shares up 6 pct in premarket trade

The company also said it continues to examine strategic alternatives for the banking unit Union Federal, including a potential sale.

In July, the U.S. Office of Thrift Supervision OTS had asked the First Marblehead unit to lower risk by reducing its concentration of private student loans, a move the company said could cause asignificant loss.

In November, First Marblehead said its banking unit sold private education loans for $3.7 million in proceeds to a newly formed trust affiliated with the parent company leaving no such loans on its units balance sheet. [ID:nBNG462778]

Source: http://www.reuters.com