So, it's looking more and more like Jack called in a political favor and it's finally paid off, with Fitzgerald and ED smacked down and told to do whatever it takes to keep CCi afloat and happy. With regulators out of the way, what's to stop Jack & Co from selling the campuses below market price with the "Socle servicing" provision? Trust Obama and his ilk to cave and let this happen. Then, when it's reported that Socle is making millions running a sweatshop to draw in financial aid without being "picky" about regs, he'll act like it's all beyond him and he just can't understand what went wrong. "What? Jack Mass and his cronies are making more than ever from taxpayer funds? Who knew?" Asshole!
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346 -- from a good source Fitzgerald has said no servicing contract. Screws the shareholders and creditors.
It does say that ED has engaged a search firm to find qualified buyers, which sounds like they are willing to bend over backwards to make a sale happen. Willing enough to let the sleazy "servicing" clause stay in?
Don't forget mid-term elections are coming up
Don't forget mid-term elections are coming up
I agree 293..the article is poorly written and devoid of real details. The article seems to me like an opinion piece, not news. The bottom line in CCI is broke, being sued by the federal consumer watchdog, and cannot find financing to keep them afloat. Damage done, goodnight.
OP - I don't see anything new in the article to indicate that we are off the hook as your post seems to imply. ED may want act in a manner that avoids a complete and sudden collapse (as stated earlier this summer)to protect both students and taxpayers, but the path still seems clear. Two things ED cannot control is whether or not any serious qualified buyers will emerge (none yet) and the drastically declining enrollment. Those, combined with the serious debt service/legal issues sems to indicate that the doors will close - sooner rather than later. If you disagree, please provide some fact-based evidence/analysis to the contrary....
Don't worry, Socle is toast. This isn't a political favor anyone owes Jack-Mass, it's a political compromise involving a much bigger field and issues than CCi. If Obama has any particular feelings toward CCi, you can be sure it's hatred. Fitzgerald wouldn't have been appointed if ED wanted a rubber stamper. We wouldn't be hearing about indictments. Jack and the execs went too far with their "nyah nyah can't catch me" attitudes and they are being put in their places. They were like 20's gangsters, conducting their crimes in the open and believing they couldn't be touched.
Problems I have with this article: The article still reflects a student body of 72000, which hasn't been the case for months. It doesn't take into account the furloughs, the layoffa, the employees jumping ship. And it plays down the dire financial crisis CCI is in. It's not just a "cash crunch." When CSC fails to pay its rent, employees are asked to save printing paper, and employees are sent on mandatory furlough, that's the mark of a company that's going to go bankrupt. I wouldn't be surprised honestly if Heald or Wyotech sells, but the rest of the brand is toast.
You sound surprised. What did you think would happen? Jack and his cronies indicted and serving time? It's all politics, and politicians (ESPECIALLY the dems) serve their corporate masters. This has always been about making sure Jack and the execs aren't too inconvenienced while ED makes a little statement. Nothing can actually happen to them. Fitzgerald works for them.