I guess this is a sign that the dance is over. There has been hope that J.C. Flowers and Bank of America and JP Morgan would find a way to compromise with Sallie Mae over the terms of the $25 billion buyout. Most people assumed that all the tough talk and posturing was just that. But after the warrants-gambit seemed to go nowhere (indeed, it has expired), it seems like the deal is dead. One sign: the almost buyers are in court in Delaware hoping to get out of paying the hefty $900 break up fee. For its part, Sallie Mae has sued for a speedy trial, a move to compel the deal to go through. That's their last hope. Barring a court-led revival, this would be the biggest deal quashed in this latest credit crunch. We could still see more, as the debt overhang is still large.  

For more:
- here's the AP article
- here's an article on Sallie Mae's suit

Related articles:
- Sallie Mae sage continues
- Behind the Sallie Mae standoff
- Sallie Mae deal to be canceled?