Goldman Sachs to Invest in First Marblehead

BOSTON (Reuters) - Goldman Sachs Capital Partners (GS.N: Quote, Profile, Research, Stock Buzz) will invest up to $260.5 million in First Marblehead Corp (FMD.N: Quote, Profile, Research, Stock Buzz), the ailing securitizer of loans for education, First Marblehead said on Friday.

Goldman Sachs, the world's biggest securities firm, will own 19.99 percent of Boston-based First Marblehead's outstanding shares.

First Marblehead also said it will eliminate its regular quarterly cash dividend for the foreseeable future.

(Reporting by Svea Herbst-Bayliss; Editing by Jeffrey Benkoe)