Education Department Rules on For-Profit Schools Created With Investor's Help

Posted By: Admin | Posted In: For Profit Education Industry | Trending News |
May 31, 2011

Steve Eisman, senior portfolio manager of the FrontPoint Financial Services Fund, speaks at the 16th annual Sohn Investment Conference in New York May 25.

A proposed regulation from the Education Department threatens to devastate for-profit career or trade schools, but one thing is even more controversial than the regulation — how it was crafted. Education Department officials were encouraged and advised about the content of the regulation by a man who stood to make millions if it were issued. “Wall Street investors were manipulating the regulatory process and Department of Education officials were letting them,” charged Melanie Sloan of a liberal-leaning ethics watchdog called Citizens For Responsibility and Ethics in Washington. Sloan has sued the Department of Education over the matter and called on the Securities and Exchange Commission to investigate. An inspector general is also investigating whether officials shared sensitive information with officers of a hedge fund that stood to gain from it. “It is an entirely new thing to actually try and manipulate the regulation in order to change the stock price and make a lot of money,” she said.
But critics say that is no excuse to work with a hedge fund manager who stood to gain from the regulation whose content he was trying to guide. Interesting how our current government is making headlines touting anti corruption and more regulations yet they work hand in hand with one of the most notorious manipulators in the business, we wonder how much he is giving to their campaign…
Read more @ fox:
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