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with counterproductive destabilizing effects beyond those caused by its potential impact on Sallie Mae. As described above, an independent market analyst has concluded that, if enacted, the Act could have a devastating effect upon both Sallie Mae's earnings and the value of its outstanding privately owned shares. Shareholders have reacted with alarm to the unanticipated adverse impact on their investments that would be caused by passage of the bill. The adverse economic consequences to Sallie Mae of the Act are exacerbated by the fact that the corpora- tion has no authority to participate in other businesses or otherwise escape from the burdensome provisions. For example, although the "offset fee" may have been struc- tured ostensibly as an "offset" of the presumed benefits of Sallie Mae's status as a GSE, Sallie Mae is not able to decline any such benefits by relinquishing that status in order to avoid the burden of the fee, the amount of which is totally arbitrary. If enacted, the Act would literally hold Sallie Mae hostage, subjecting the statute to constitutional challenge as a bill of attainder as well as an impermis- sible taking without just compensation. The United States Constitution prohibits any legislation that 16

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    "ocrText": "with counterproductive destabilizing effects beyond those\ncaused by its potential impact on Sallie Mae.\nAs described above, an independent market\nanalyst has concluded that, if enacted, the Act could\nhave a devastating effect upon both Sallie Mae's earnings\nand the value of its outstanding privately owned shares.\nShareholders have reacted with alarm to the unanticipated\nadverse impact on their investments that would be caused\nby passage of the bill.\nThe adverse economic consequences to Sallie Mae\nof the Act are exacerbated by the fact that the corpora-\ntion has no authority to participate in other businesses\nor otherwise escape from the burdensome provisions. For\nexample, although the \"offset fee\" may have been struc-\ntured ostensibly as an \"offset\" of the presumed benefits\nof Sallie Mae's status as a GSE, Sallie Mae is not able\nto decline any such benefits by relinquishing that status\nin order to avoid the burden of the fee, the amount of\nwhich is totally arbitrary.\nIf enacted, the Act would literally hold Sallie\nMae hostage, subjecting the statute to constitutional\nchallenge as a bill of attainder as well as an impermis-\nsible taking without just compensation. The United\nStates Constitution prohibits any legislation that\n16"
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