DID WALL STREET HUSTLE FEDS?
WASHINGTON -- The National Black Chamber of Commerce (NBCC) has just released an infographic that reveals details concerning the tangled web of influence spun by Wall Street hedge fund managers to press for passage of Department of Education regulations that would hurt the lucrative for-profit education sector.
The controversial new policies advocated by the short-sellers are expected to have drastic consequences on minority students.
"Over the past year, short-sellers have aggressively campaigned against for-profit colleges and colluded with government officials to push a 'Gainful Employment' rule that would hurt for-profit schools, whose student bodies are comprised of 39% minorities," said Harry Alford, president and CEO of NBCC. "The alarming examples shown in the infographic we created begs the question of whose interests are really being served by these harmful regulations."
The infographic depicts the various tactics short-sellers have used to attack for-profit colleges with the goal of passing the harsh "Gainful Employment" regulations. Examples include: meeting directly with Education Department officials, slamming for-profits during a Congressional hearing and hiring a private investigator to dredge up stories that the schools recruit from homeless shelters.
NBCC has staunchly opposed the "Gainful Employment" rule since it was proposed because it will deny financial aid to minority students who rely on for-profit colleges.
The regulation threatens access to education for African American and other minority students by cutting federal aid for career colleges, thus cutting access for thousands of minority students who depend on federal aid to attend these schools.
"With unemployment rates hovering around 16% for African Americans, the Department of Education should be doing everything possible to get our kids in schools and off the streets – not work with short-sellers to short-change our students," said Alford. "We need to ensure that students have educational options to get the skills they need to be successful in the labor market. It is an outrage that the department is allowing such corruption to happen at the expense of minority students, while short-sellers profit off of their predicament."
In August of last year, Alford submitted comments to the public docket opposing Gainful Employment, he also testified before the department urging the rule be thrown out because of the drastic effects it will have on Africa American students.
Last week, NBCC applauded the House of Representatives for passing an amendment to defund the regulation and urged the Senate to do the same.
About NBCC
The NBCC reaches 100,000 Black owned businesses. There are 1.9 million Black owned businesses in the United States. Black businesses account for over $138 billion in annual sales. African Americans have over $1 trillion in expendable income each year according to the US Bureau of Census. The National Black Chamber of Commerce is dedicated to economically empowering and sustaining African American communities through entrepreneurship and capitalistic activity within the United States and via interaction with the Black Diaspora.
