Direct-Lending Program for Student Loans Proposed; Sallie Mae Shares Drop First he zombied the banks, in effect potentially diluting the shareholders as the government preferreds can be converted into common. Of course when things turn around and that common can be sold at higher prices, I wonder what slush fund or whose bank account that profit will find its way to. Now he's in effect wiping out Sallie Mae and all the other lenders. Is this how they do things in Kenya? The US let banks go bankrupt and had the RTC slice things up back in the late 80's and early 90's. Didn't Obama see how well this worked out as compared to the Japan's Zombie Program? And wiping out a private sector to let the govt run and profit from sounds like something Mugabe in Zimbabwe would do. It looks like the US elected Mugabe Jr or Junior Mugabe, however you like the sound of it.