The Securities and Exchange Commission is investigating trading of Reston-based Sallie Mae stock in connection with the company’s expected sale, Sallie Mae reported in federal filings.
The SEC is looking into trades by unnamed Sallie Mae directors. Subpoenas were issued to the company earlier this month.
Sallie Mae did not return calls for comment.
Sallie Mae Chairman Albert Lord is already under investigation by the SEC for his sale of company stock daysbefore President Bush presented his 2008 budget proposal. The budget included cuts to student loan subsidies that would lessen profits.
Lord sold $18.3 million in stock a few days before the proposal was made public. After the budget was released, the price of Sallie Mae stocks fell 9 percent.
Congressional committees are also investigating this sale.
According to the company, the SEC “is conducting an investigation into trading of SLM stock by certain directors of the company.” The company said the new investigation is related to stock trading in April around the time the sale was announced. The company agreed to be bought by J.C. Flowers & Co., along with three other investors.
The Associated Press contributed to this report.
