Sure CCi, we forgive you again, but just this one additional time.
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Come on, CCi characterizes those as isolated events that they immediately corrected.
One small difference from CCI to Wall Street banks: Wall Street banks didn't directly defraud the federal government. CCI did. As stated, CCI would be the first big scalp collected in the industry. Given that this is also an election year, politicians will be all too willing to run this up the flag pole.
For those who are not involved in capital management or those who do not work in high-level management, the fantasy of "fat cats" being forced to testify and then sent to jail is a wonderful possibility. The reality is that there is no culpability here. Entities are stripped of value and gutted, while those at the top of the chain do very well. How much cash do you think management has taken away over the past few years? They grunt a bit to DOE and then move along. There will be a few cursory investigations and then all blows over. The workers suffer...business as usual.
How many from Wall Street went to jail for what they did? Dream on, SMH.
One look at the balance sheet of CCI blows the "too big to fail" argument to pieces. After CCI goes under, congress will open hearings and put Jack on the stand. Like Dick Fould, he is gonna have to answer some tough questions, if he is lucky. If ED raids CCI HQ and finds the deliberate fraud we know exists...then "HI HO..HI HO..OFF TO JAIL THEY GO..."
The sky is not falling. Everything is fine.
OMG, the sky is falling, the sky is falling.
Enron was not too big to fail and it was far more reaching than CCI ever dreamed of being. No brands are salvageable, the gig is up. This isn't simple mismanagement or business failure, it is fraud.
Forget the rumors and hype here. A corporation this large and with this significant a base of students and employees is indeed "too big to fail." However, they will serve as the scapegoat for all that Duncan has been forced to confront as Secretary of Education. The likely scenario is a waiving of the 21 day hold until Heald and WTech can be sold. This will then be used to discharge some of the larger (and politically-connected) obligations. Then, we move to bankruptcy. Brands than can scramble and get away from the Corinthian affiliation will do so rapidly so that they can continue. Private equity will then work to rebuild individual brands until then can again be sold to for-profit corporate entities.