Steven Eisman is an American businessman and investor During a speech entitled “Subprime Goes to College” during the Ira Sohn Conference in May Eisman attacked companies. In a speech titled “Subprime Goes to College,” delivered Wednesday at the Ira Sohn Investment Research Conference, Eisman blasted the. One of those managers was Steven Eisman of FrontPoint Partners Steven Eisman & FrontPoint Partners entitled, ‘Subprime Goes to College’.

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With billboards lining the poorest neighborhoods in America and recruiters trolling casinos and homeless shelters and I mean that literallythe for-profits have become increasingly adept at pitching the dream of a better life and higher earnings to the most vulnerable of society. And here is where the eidman analogy becomes very clear.

Are we going to do this all over again? We’ll watch with great interest to see how this one plays out. While he has since scaled back his position some, we saw he still owned it when we detailed Lone Pine’s portfolio.

After a discussion period, the rules will be issued in November and go into effect summer eisamn But accreditation bodies are non-governmental, non-profit peer-reviewing groups. The for-profit industry has grown at supbrime extreme and unusual rate, driven by easy access to government sponsored debt in the form collegge Title IV student loans, where the credit is guaranteed by the government.

Ira Sohn Conference Notes: We mention tuition prices as little as possible. Sorry, your blog cannot share posts by email. Gainful employment will cause enrollment levels to grow less quickly.

Investor Steve Eisman RAILS On For-Profit Colleges

The scandal here is exactly akin to the rating agency role in subprime securitizations. News Corp HarperCollins Marketwatch realtor. This formula maximizes the amount of Title IV loans and grants that these students receive. They conveniently price tuition at the exact amount that a student can qualify for in federal loan money. And the days of raising tuition would be over; in many cases, tuition will go down.


Steve Eisman – Wikipedia

Inside the Doomsday Machine. The allegations stem from a meeting that Eisman had with Department of Education officials David Bergeron and Robert Shireman, two weeks before delivering his speech at the Ira Sohn Conference.

This would force universities to lower their tuition, or face declining enrollment because fewer students could afford school. Retrieved 20 November One example is Sally Stroup.

There is a eisamn relationship between matching means and cost in education. Until recently, I thought that there would never again be an opportunity to be involved with an industry as socially destructive and morally bankrupt as the subprime mortgage industry.

A student prepares for an online quiz at home for the Universtity of Phoenix.

Steve Eisman’s Epic Takedown of the For-Profit Education Industry

Adapted from a speech he gave to the Ira Sohn Investment Conference. Inside the Doomsday Machine”.

Bridgepoint took that school online and at the end of it had 54, students. Betting against subprime mortgages during the Financial Crisis. There has been a revolving door between the people who work for this industry and the halls of government. He was busy making speeches that every American sbuprime take out an ARM mortgage loan. Retrieved February 12, Investment Ideas From H He notes that a key to the problem here is the ‘rating’ these institutions receive from accreditation boards and he likens these boards to the ratings agencies who blessed subprime mortgages.

He attended the University of Pennsylvaniagraduating magna cum laude in The industry has gotten hysterical over this rule because it knows that to comply, it will probably have to reduce tuition. The answer is to control the accreditation process.


The fund performed poorly inreturning 3.

Tracking top hedge funds since Upon nearing completion, the students learned that not only would their credits not transfer to any community or four-year college, but also that their degree is not recognized by the American Association for Medical Assistants. If a person has money available for school Ashford finds a way to go after them. I cannot emphasize enough that gainful employment changes the business model. ESI is more profitable on a margin basis than even Apple.

Infobox person using alma mater Articles with hCards.

So what is the government going to do? There is no regard to whether a student really suprime in school, the goal is to enroll as many as possible.

Let me quote a bit from a former employee of Bridgepoint Education, operators of Ashford University:. In many instances, the for-profit institutions sit on the boards of the accrediting body.

Washington clamping down on the industry and a rise in employment generating a decline in enrollment. How has this been allowed to happen? As we’ve detailed numerous times, the for-profit education space is an investor battleground with a clear divergence of opinion. Once the floodgates were opened, the industry embarked on 10 years of unrestricted massive growth.

Suborimeshe was the head lobbyist for the Apollo Group — the company behind the University of Phoenix and the largest for-profit educator.