Sallie Mae announced a third-quarter loss of $344 million that seems to confirm what the banks and J.C. Flowers said about the effect of new legislation. But Sallie Mae chairman Albert Lord seems to be sticking to his guns. The company contends the new subsidy-reducing law will weed out competitors and actually help Sallie Mae. Most interestingly, Lord told reporters that that he has fielded other inquiries, suggesting that there may be other possible buyers out there. Unfortunately for him, he is not able to discuss a deal with any of them, per the current negotiations. It's anybody's guess where this goes from here. I still think a compromise of sorts is in order, not that the warrants offered by the pursuers is a good idea.  

For more:
- here's an AP article

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- Behind the Sallie Mae standoff
- Sallie Mae deal to be canceled?