Kathianne
03-06-2011, 04:43 AM
brought to DC. Links at site:
http://www.professorbainbridge.com/professorbainbridgecom/2011/03/insider-trading-at-the-department-of-education.html
Insider Trading at the Department of Education?
Glenn Reynolds:
AN INSIDER TRADING SCANDAL AT THE DEPARTMENT OF EDUCATION? “Today Citizens for Responsibility and Ethics in Washington (CREW) sent letters to the Director of Enforcement for the Securities and Exchange Commission (SEC) and U.S. Department of Education Secretary Arne Duncan to share records CREW obtained through its Freedom of Information Act (FOIA) lawsuit against Education. These documents show high-level Education officials colluded with Wall Street short-sellers, improperly leaking the contents of highly controversial gainful employment regulations in advance of their publication.”
I’ve figured all along that the assault on for-profit education is mostly political — and maybe even an effort to keep the squeeze on the Washington Post via its Kaplan subsidiary so it won’t be too hard on the Administration — but I had no idea that there was money-grubbing involved too.
We know bureaucrats leak information to reporters all the time in an effort to influence policy. But leaking information to short sellers is a new one on me. For a review of the relevant legal principles covering insider trading by government officials, see my article Insider Trading Inside the Beltway.
http://www.professorbainbridge.com/professorbainbridgecom/2011/03/insider-trading-at-the-department-of-education.html
Insider Trading at the Department of Education?
Glenn Reynolds:
AN INSIDER TRADING SCANDAL AT THE DEPARTMENT OF EDUCATION? “Today Citizens for Responsibility and Ethics in Washington (CREW) sent letters to the Director of Enforcement for the Securities and Exchange Commission (SEC) and U.S. Department of Education Secretary Arne Duncan to share records CREW obtained through its Freedom of Information Act (FOIA) lawsuit against Education. These documents show high-level Education officials colluded with Wall Street short-sellers, improperly leaking the contents of highly controversial gainful employment regulations in advance of their publication.”
I’ve figured all along that the assault on for-profit education is mostly political — and maybe even an effort to keep the squeeze on the Washington Post via its Kaplan subsidiary so it won’t be too hard on the Administration — but I had no idea that there was money-grubbing involved too.
We know bureaucrats leak information to reporters all the time in an effort to influence policy. But leaking information to short sellers is a new one on me. For a review of the relevant legal principles covering insider trading by government officials, see my article Insider Trading Inside the Beltway.