“First, we have endorsed the creation of a single financial markets stability supervisor…Second, the industry strongly supports the administration’s proposal for a public-private partnership to absorb troubled assets…Third, it is clear the complexity of some financial instruments went too …Markets themselves have also imposed some much-needed discipline, declaring the end of complex and confusing products such as collateralised debt obligations squared….Finally, we firmly believe that there have been excesses on the compensation front….compensation should not encourage excessive risk-taking, but should promote business sustainability and be aligned with the best interests of shareholders, the financial system and the economy.”

Timothy Ryan, President and Chief Executive Officer. The Securities Industry and Financial Markets Association (Sifma). June 8, 2009

Alliance For Economic Stability

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Congressional Hearings Called “menacing” to For-Profit Education.
June 25, 2010

Today Senator Tom Harkin, Chairman of the U.S. Senate Committee on Health, Education, Labor and Pensions, will hold a hearing titled "Emerging Risk? An Overview of the Federal Investment in For-Profit Education."  The witnesses that are scheduled to testify at the hearing are Kathleen Tighe, the Department of Education's (“DOE”) Inspector General; Yasmine Issa, former Sanford Brown Institute (CECO) student; Margaret Reiter, former Supervising Deputy Attorney General in California; Steve Eisman, portfolio manager at Frontpoint Financial Services Fund; and Sharon Thomas Parrott, DeVry's SVP of Government and Regulatory Affairs.

Last Thursday, June 17, 2010, Congressman George Miller, Chairman of the U.S. House of Representatives Committee on Education and Labor, held a hearing titled “The Department of Education Inspector General’s Review of Standards for Program Length in Higher Education.”  The witnesses that testified at the hearing also included Ms. Tighe, the Department of Education's Inspector General.

 
Alliance for Economic Stability Announces Initiative to Address Abuse of Taxpayer Funds by For-Profit Education Companies.
May 25, 2010

The Alliance for Economic Stability (“AES”) announces an initiative to address improved oversight of tax-payers’ funds provided to for-profit companies operating online universities (“For-Profits”).

The For-Profits obtain revenues primarily from student loans administered and guaranteed by the federal government.  The For-Profits and their use of tax-payer funds are overseen by the U.S. Department of Education (“DOE”), but the For-Profits’ practices have been the subject of increasing controversy since changes were made during the Bush administration to DOE rules governing the For-Profits’ sales practices.

Recent press coverage has revealed that the For-Profits often engage in practices that appear questionable, particularly for government-funded enterprises. Two articles from Bloomberg News, for instance, have discussed practices of For-Profits sales persons targeting unemployed homeless persons and returning military veterans, including one suffering from brain-damage.

 


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