First Marblehead Funding Issues Continue

Aug 25, 2008 (financialwire.net via COMTEX) -- FMD | Quote | Chart | News | PowerRating -- August 25, 2008 (FinancialWire) Prolonged troubles in the student loan securitization market could slowly chip away the value of First Marblehead (NYSE: FMD | Quote | Chart | News | PowerRating) (Current Market Cap: US$362.88 Mil.), said a Friedman, Billings, Ramsey & Co. analyst in a research note Friday.

Analyst Matt Snowling said that the company's ability to manage expenses and protect its cash position remains paramount, even after the $132 million cash investment from Goldman Sachs. The investment bank provided the cash infusion last week, which boosted First Marblehead's shares by as much as 70%.

First Marblehead reported last week that it swung to a loss in both the fiscal fourth quarter and full-year ended June 30, as the student loan originator shifts to a more fee based structure.

Shares of the company are down 76% in 2008.

FinancialWire" is a fully independent, proprietary news wire service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation from any company for its news or opinions. All FinancialWire" news is available at http://www.financialwire.net . The FinancialWire" NewsFeed is available in multiple formats at http://www.investrend.com/XmlFeeds?level=268 . Please address any inquiries to feedback@financialwire.net .

Free annual reports for companies mentioned in the news are available at http://investrend.ar.wilink.com/?level=279 .

http://www.financialwire.net

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index