“They regulate it. They drive the price down. …They are buying it for pennies on the dollar.”
This looks like straight up crony capitalism. It’s not difficult to see why some in the Obama administration would like to crush a large higher education network, with everything in place, and then resurect it in the name of doing “good.” Like a Phoenix one might say. A big, ugly, crony, taxpayer subsidized Pheonix which is owned by Obama’s buddies. And I mean CLOSE Obama buddies. Why build anything when you can get the government to just take if for you right?
This is an excellent report from Politico, and though a bit long, should be read. There really are people who think wealth via crony capitalism is legitimate.
As the Obama administration cracks down on for-profit colleges, three former officials working on behalf of an investment firm run by President Barack Obama’s best friend have staged a behind-the-scenes campaign to get the Education Department to green-light a purchase of the biggest for-profit of them all — the University of Phoenix.
The investors include a private equity firm founded and run by longtime Obama friend Marty Nesbitt and former Deputy Education Secretary Tony Miller. The firm, Chicago-based Vistria Group, has mounted a charm offensive on Capitol Hill to talk up the proposed sale of the troubled for-profit education giant, which receives more than $2 billion a year in taxpayer money but is under investigation by three state attorneys general and the FTC.