A letter sent to U.S. Education Secretary Arne Duncan criticizing the aggressive recruitment of homeless students by for-profit colleges may have been orchestrated by an investment firm, according to an article in ProPublica, an online, nonprofit news service that conducts investigative journalism. Numerous executives of homeless shelters and service agencies signed the letter without knowing of its alleged ties to the investment firm. For-profit colleges have complained that some investors on Wall Street could be trying to purposely drive down the colleges’ stock prices in order to make money as short sellers, a stock bet based on a predicted fall in share value.
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4 Responses to Investment Firm’s Alleged Involvement in Letter Sent to Education Dept. Stirs Controversy
davidbinder - July 9, 2010 at 6:59 pm
It would not be surprizing if the link turns out to be correct. However, that does not affect assessing the merits of the issue raised. The issue should be addressed purely on its own merits. That a party with a vested interest in the outcome may have been involved does not affect what DoE should do. On the other hand, it may warrant a look by the SEC … depending on the specifics of the situation, securities laws may have been violated if the intent was to push down share prices by a party holding a short position. The SEC, not the DoE, is the proper venue for complaining for-profits to bring their concern.
richardtaborgreene - July 9, 2010 at 9:48 pm
I like the display of what happens when a nation and its people and culture create the space (legal and otherwise) in which so-called businesses chase pure profit devoid of any product or service benefit to anyone at all. It appears as if bad-mouthing each other ends up the society that results. Interesting and amusing. One day the US and its people may decide to get back into the business of making profits as a reward for delivering products and services to people in need—an old boring idea to be sure.
disembedded - July 10, 2010 at 9:41 am
I think that when the Chronicle publishes a note in The Ticker, it should post a link in the note so that readers can assess that note for themselves.
disembedded - July 10, 2010 at 8:12 pm
Oops, sorry…I found the link in this post.