Education Department Rules on For-Profit Schools Created With Investor's Help

A proposed regulation from the Education Department threatens to devastate for-profit career or trade schools, but one thing is even more controversial than the regulation -- how it was crafted.

Education Department officials were encouraged and advised about the content of the regulation by a man who stood to make millions if it were issued.

"Wall Street investors were manipulating the regulatory process and Department of Education officials were letting them," charged Melanie Sloan of a liberal-leaning ethics watchdog called Citizens For Responsibility and Ethics in Washington.

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But a former Clinton official said if the shoe were on the other foot, Democrats would have a fit, and for good reason. "If it was a Republican administration that were doing this, the Democrats would be on the floor of the Congress in the House and Senate screaming bloody outrage."

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Viktyr Korimir said:

As a rule of thumb, whenever "investors" are making money by betting that companies fail there is something unspeakably wrong with the system.

I wouldn't have a problem with this if the man doing the "advising" were profiting from the regulations because they helped his holdings succeed.

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