A failed buyout, a possible dividend cut, a reduced profit outlook and a hostile credit market - what else could possibly go wrong for giant U.S. student loan lender SLM Corp., otherwise known as Sallie Mae?
Er, how about a brand-new chief executive officer caught speaking profanely and cavalierly on a conference call with investors and analysts yesterday.
Albert Lord, in the job as CEO for three days (though he's been chairman since 2005) was on the call, along with his vice-president of investor relations, Steve McGarry, to soothe fears about the company.
Instead, under steady questioning he was often vague and defensive - even saying at one point that analysts would "be going through a metal detector" at a promised investor meeting in mid-January. Mr. Lord also had to explain his embarrassing sale of 1.2 million shares of the company the very day he was named CEO, made necessary because of a margin call. Then came the bombshell.
Toward the end, there was a 10-second-long silence when no more questions were forthcoming. Then a voice said quietly, "How good is this ... Steve, let's go. There are no more questions. Let's get the fuck out of here." What followed the 9:30 a.m. call was a massive selloff in the stock - by 20 per cent, amounting to almost $3-billion (U.S.) in market cap. A company spokeswoman told Nobody's Business it was "an unfortunate slip of the tongue."
