H&R Block, Inc. | Accounting
H&R Block, the leading tax return preparer in the U.S., will cut 400 jobs and realign its business. The company, which had a disappointing tax season, has also closed approximately 400 underperforming tax offices.
Candidates: 400
Reuters, May 19, 2010
Top
Diageo plc | Alcoholic Beverages
Diageo, maker of Smirnoff, Johnnie Walker, and Guinness, will eliminate 90 jobs in its U.S. wine division. The company is scaling back the business to cut costs.
Candidates: 90
Bloomberg Businessweek, May 12, 2010
Top
JVC Kenwood Holdings, Inc. | Audio Equipment
JVC Kenwood Holdings, a company formed by the merger of two audio powerhouses, will eliminate 1,000 jobs or approximately 20 percent of its workforce. Layoffs are expected to occur by the end of October.
Candidates: 1,000
Bloomberg.com, May 14, 2010
Top
The Royal Bank of Scotland Group plc | Banking
The Royal Bank of Scotland (RBS) will cut an additional 2,600 jobs, mostly in its insurance division. The new layoffs bring the total number of job cuts at RBS to approximately 20,000.
Candidates: 2,600
MarketWatch, May 10, 2010
Top
Dean Foods Company | Dairy Products
Dean Foods, a leading producer of dairy products, will cut as many as 400 jobs on top of 150 positions it eliminated earlier this year. The job cuts are part of a major restructuring aimed at saving the company $25 million annually. Dean Foods is headquartered in Dallas and operates four facilities in Wisconsin.
Candidates: 400
The Business Journal of Milwaukee, May 11, 2010
Top
Legg Mason, Inc. | Financial Services
Investment management firm Legg Mason will eliminate 250 jobs in the Baltimore area. The majority of cuts will come when the company shuts down its Owings Mills offices over the next six to 18 months. Investment operations, billing, accounting, and other back office jobs will be affected.
Candidates: 250
The Baltimore Sun, May 10, 2010
Top
Stanley Furniture Company, Inc. | Furniture Manufacturing
Stanley Furniture, which posted a wider than expected quarterly loss, will cut about 530 jobs at Virginia locations. The job cuts are part of a restructuring plan that includes shifting a majority of the manufacturing of its adult product line to offshore vendors.
Candidates: 530
Reuters, May 12, 2010
Top
Pfizer Inc. | Pharmaceuticals
Pharmaceutical giant Pfizer, which purchased rival Wyeth last year for $68 billion, plans to lay off or relocate 1,400 New York City employees. The company has also put its Manhattan office tower at 685 Third Avenue up for sale as part of a plan to consolidate operations.
Candidates: 1,400
The New York Times, May 10, 2010
Top
Pfizer Inc. | Pharmaceuticals
Separately, Pfizer has announced plans to eliminate a total of 6,000 jobs at its 78 manufacturing plants over the next five years. As part of its efforts to consolidate and streamline operations following the purchase of Wyeth last year, Pfizer will close eight plants.
Candidates: 6,000
The New York Times, May 18, 2010
Tuesday, May 25, 2010
Monday, May 17, 2010
Fundraising Event Friday May 21st
Hi All!
I just wanted to send out a friendly reminder for the upcoming fundraiser event on Friday, May 21st from 6:00pm – 9:00pm at the Scottsdale Resort & Athletic Club. This is a free event.
This event will be themed “The Triple Crown Derby Party – Hats off to Horses” to help thoroughbred horses (like the one we recently rescued that was beaten and neglected – see Ch. 15 news coverage here:http://www.abc15.com/content/news/westvalley/laveen/story/Farrier-blamed-for-abusing-horse-speaks-out/KEBdvhgNH02cSlyrpCzX1A.cspx ).
About the Event:
Our “Triple Crown” event will feature a fun evening starting at 6:00PM at the Scottsdale Resort & Athletic Club including mouthwatering food & refreshing drinks & Mint Juleps, a silent auction, a raffle and a variety of vendors too! This event is the perfect benefit for The Luv Shack Ranch which is holding their Thoroughbred adoption. Adoptable horses will be shown on video at the event as well as the highlights of the Triple Crown Races. http://www.scottsdaleresortandathleticclub.com
Ladies wear your best hat for the "Hat's off to Horses" hat contest!
About Us:
The Luv Shack Ranch (LSR) Horse Rescue is a non-profit, 100% volunteer run organization dedicated to the rescue and rehabilitation of abused, neglected and slaughter bound horses with the ultimate goal of finding each animal a loving, forever home. Additionally, we are committed to creating therapeutic programs for at risk children to help them heal from similar circumstances. Our goal is to serve the community by providing the opportunity for the horse and children to heal one another physically, mentally and emotionally.
I just wanted to send out a friendly reminder for the upcoming fundraiser event on Friday, May 21st from 6:00pm – 9:00pm at the Scottsdale Resort & Athletic Club. This is a free event.
This event will be themed “The Triple Crown Derby Party – Hats off to Horses” to help thoroughbred horses (like the one we recently rescued that was beaten and neglected – see Ch. 15 news coverage here:http://www.abc15.com/content/news/westvalley/laveen/story/Farrier-blamed-for-abusing-horse-speaks-out/KEBdvhgNH02cSlyrpCzX1A.cspx ).
About the Event:
Our “Triple Crown” event will feature a fun evening starting at 6:00PM at the Scottsdale Resort & Athletic Club including mouthwatering food & refreshing drinks & Mint Juleps, a silent auction, a raffle and a variety of vendors too! This event is the perfect benefit for The Luv Shack Ranch which is holding their Thoroughbred adoption. Adoptable horses will be shown on video at the event as well as the highlights of the Triple Crown Races. http://www.scottsdaleresortandathleticclub.com
Ladies wear your best hat for the "Hat's off to Horses" hat contest!
About Us:
The Luv Shack Ranch (LSR) Horse Rescue is a non-profit, 100% volunteer run organization dedicated to the rescue and rehabilitation of abused, neglected and slaughter bound horses with the ultimate goal of finding each animal a loving, forever home. Additionally, we are committed to creating therapeutic programs for at risk children to help them heal from similar circumstances. Our goal is to serve the community by providing the opportunity for the horse and children to heal one another physically, mentally and emotionally.
Thursday, May 13, 2010
Little-Known Reasons You're Not Getting Hired
Karen Burns, On Wednesday May 12, 2010, 11:08 am EDT
If you're job hunting you're surely aware of the most egregious and common no-nos: showing up for the interview ten minutes late; answering your phone during the interview; handing over a resume riddled with typos; using a silly-sounding E-mail address; failing to demonstrate you've researched the employer; bad-mouthing your last boss; neglecting to follow up. You're not doing any of that, are you? Of course not.
But you may not have considered some of the less-discussed, under-the-radar issues. Give this list a look and ask yourself, "Do any of these sound like me?"
1. You have unreasonable expectations. Everybody wants the perfect job. But if your criteria are too high, if you're being too demanding, you may well remain unemployed. Nobody wants to be told to compromise, but the fact is that much of life involves just that, at least temporarily. Analyze your wants and needs. Which are must haves? Which are negotiable? Which can be put on hold?
2. You're relying too much on one search technique. Maybe you are only applying online, or only networking, or only using employment agencies, or only approaching companies that you know are hiring. Don't limit yourself to just one job-search method. Try them all. Cast a wide net, continue to build your connections, get creative.
[See 10 new rules for today's job hunt.]
3. You use the word "I" too often in your cover letter. The most effective way to endear yourself to potential employers is to put the focus more on them than on you. Show you've done your homework and understand what your target companies are seeking. Then tell them how you can fill those needs.
4. You are not demonstrating long-term potential. We get caught up in the moment. We need a job now. But employers, the good ones at least, tend to think long term. They want to know not only how you will contribute today but in the future, too. That "Where do you see yourself in five years?" question is not just for drill. They really want to know.
5. You are unknowingly repeating mistakes. After interviews, are you taking the time to review and analyze them? Many times the reason you don't get a job is beyond your control, and, in fact, has nothing to do with you, but not always. Trying to understand why the answer was "No" may help you to fine tune your approach.
[See the topics you can't discuss at work.]
6. You have not rehearsed. You may hesitate to rehearse answers to the most common questions. You don't want to sound canned. You want to be yourself. But consider the benefits of creating great answers to those questions you hear the most--short, vivid, three-sentence answers brimming with examples and facts--and practicing them until you can speak with conviction and confidence.
7. You put your job search on hold while waiting to hear back. Don't we all fall into this trap at one time or another? You've had a super couple of interviews with your dream employer. You just know you're going to get "the call" any day now. You think, I'm going to hold off until I hear back; after all, I deserve a little break. Well, no doubt you do deserve a little break--but don't. Keep on networking, applying, interviewing, and researching until you have a firm job offer in hand.
Looking for work is an enormous project. In many ways it's more difficult, and takes more energy, than even the most demanding job. So, in the midst of it all, find a way to nurture yourself. Keep on fine tuning and strengthening your approach. And hang in there.
Karen Burns is the author of the illustrated career advice book The Amazing Adventures of Working Girl: Real-Life Career Advice You Can Actually Use, recently released by Running Press. She blogs at www.karenburnsworkinggirl.com.
http://finance.yahoo.com/news/7-LittleKnown-Reasons-Youre-usnews-863973864.html?x=0
If you're job hunting you're surely aware of the most egregious and common no-nos: showing up for the interview ten minutes late; answering your phone during the interview; handing over a resume riddled with typos; using a silly-sounding E-mail address; failing to demonstrate you've researched the employer; bad-mouthing your last boss; neglecting to follow up. You're not doing any of that, are you? Of course not.
But you may not have considered some of the less-discussed, under-the-radar issues. Give this list a look and ask yourself, "Do any of these sound like me?"
1. You have unreasonable expectations. Everybody wants the perfect job. But if your criteria are too high, if you're being too demanding, you may well remain unemployed. Nobody wants to be told to compromise, but the fact is that much of life involves just that, at least temporarily. Analyze your wants and needs. Which are must haves? Which are negotiable? Which can be put on hold?
2. You're relying too much on one search technique. Maybe you are only applying online, or only networking, or only using employment agencies, or only approaching companies that you know are hiring. Don't limit yourself to just one job-search method. Try them all. Cast a wide net, continue to build your connections, get creative.
[See 10 new rules for today's job hunt.]
3. You use the word "I" too often in your cover letter. The most effective way to endear yourself to potential employers is to put the focus more on them than on you. Show you've done your homework and understand what your target companies are seeking. Then tell them how you can fill those needs.
4. You are not demonstrating long-term potential. We get caught up in the moment. We need a job now. But employers, the good ones at least, tend to think long term. They want to know not only how you will contribute today but in the future, too. That "Where do you see yourself in five years?" question is not just for drill. They really want to know.
5. You are unknowingly repeating mistakes. After interviews, are you taking the time to review and analyze them? Many times the reason you don't get a job is beyond your control, and, in fact, has nothing to do with you, but not always. Trying to understand why the answer was "No" may help you to fine tune your approach.
[See the topics you can't discuss at work.]
6. You have not rehearsed. You may hesitate to rehearse answers to the most common questions. You don't want to sound canned. You want to be yourself. But consider the benefits of creating great answers to those questions you hear the most--short, vivid, three-sentence answers brimming with examples and facts--and practicing them until you can speak with conviction and confidence.
7. You put your job search on hold while waiting to hear back. Don't we all fall into this trap at one time or another? You've had a super couple of interviews with your dream employer. You just know you're going to get "the call" any day now. You think, I'm going to hold off until I hear back; after all, I deserve a little break. Well, no doubt you do deserve a little break--but don't. Keep on networking, applying, interviewing, and researching until you have a firm job offer in hand.
Looking for work is an enormous project. In many ways it's more difficult, and takes more energy, than even the most demanding job. So, in the midst of it all, find a way to nurture yourself. Keep on fine tuning and strengthening your approach. And hang in there.
Karen Burns is the author of the illustrated career advice book The Amazing Adventures of Working Girl: Real-Life Career Advice You Can Actually Use, recently released by Running Press. She blogs at www.karenburnsworkinggirl.com.
http://finance.yahoo.com/news/7-LittleKnown-Reasons-Youre-usnews-863973864.html?x=0
Tuesday, May 4, 2010
Shiny and New: 10 Things to Anticipate in 2010
Shiny and New: 10 Things to Anticipate in 2010
by ALONSO DOMINGUEZ SANCHEZ TERUEL
Published: Mon Mar 29, 2010
Let's face it, we live for novelty. The faint hint of new gets us off like nothing else. Be it world phenomena, fashion, architecture or a quirky gadget, we crave the forthcoming and the expectation kills us. Here are 10 anxiously anticipated gadgets, places and events arriving in 2010. We can't wait. Can you?
The Apple iPad
What: A 9.7 inch personal computer tablet, operated entirely by a touch screen
Who: Apple
When: The first generation goes on sale April 3rd
Where: www.apple.com
Why: As with all Apple products, resistance is futile.
Soho House Berlin
What: six floors, 40 rooms, three restaurants and a rooftop pool in a pre-war architectural paragon in East Berlin
Who: Soho House, www.sohohouseberlin.com
When: May 4th (announced)
Where: Torstrasse 1, Berlin
Why: A tan looks better from atop a former GDR official building.
Takashi Murakami Takes Versailles
What: An exhibit by the famed "Japanese Andy Warhol." This will be his first large-scale retrospective in France, which will be in the Hall of Mirrors and the apartments of the King and the Queen.
Who: Artist Takashi Murakami
When: 12 September - 12 December 2010
Where: Versailles, France
Why: Jeff Koons' controversial exhibit at the palace left us wanting more.
Kenmare Lands in Nolita
What: NY's restaurant du jour gives the displaced, grungy denizens of Beatrice a place to call home.
Who: Nur Khan (Rose Bar), Paul Sevigny (Beatrice Inn) and Joey Campanaro (Little Owl) are behind the counter and every A-lister in town on the tables.
When: Now
Where: 98 Kenmare Street, New York, NY
Why: Olivier Zahm, Chloe Sevigny and Anouk Lepere need a new hang out spot in New York.
Alexander McQueen's New Creative Director
What: The eagerly awaited announcement of the fashion genius successor
Who: Officially, no name yet, but unofficially, Gareth Pugh's future is looking bright indeed.
When: Soon, very soon
Where: Keep checking insider blogs
Why: Lady Gaga needs a new oufit, pronto!
Wireless Electricity
What: Exactly that, no more wires
Who: Eric Giler , CEO of WiTricity. Check out his demostration at the TED conference last year, www.ted.com.
When: Rumour has it, we should see the first hint of commercial use by the end of the year.
Where: Eventually every household in the world
Why: Wires are just ugly.
3D TV
What: 3D television, plus 3D glasses, Avatar in 3D BluRay, the works
Who: At the moment, Phillips seems to be at the head of the pack.
When: The first fully commercially 3D TVs should be available by May.
Where: China and Japan have released their own 3D TVs and the West will follow shortly.
Why: Why should geeky 3D glasses be limited to theatres alone?
Masdar City
What: The world’s first carbon neutral city
Who: The Abu Dhabi Future Energy Company (ADFEC) and Brit firm Foster & Partners
When: Possibly the end of the year. Though the completion date has been changed several times, so there are strong doubts the project will be completed as scheduled.
Where: UAE
Why: Why not?
Shanghai Comes Out
What: Shanghai’s 2010 Expo will explore the potential of urban life in the 21st century.
Who: 200 countries from around the world
When: 1 May - 31 October 2010
Where: Shanghai, China
Why: According to Shanghai's 2010 Expo website, China owes its successful bid to “the expectations the world's people place on China's future development.“
Seven Billion People
What: World population to hit seven billion
Who: You, me and billions more
When: It's predicted to happen in November, but the US will provide more accurate data after the census in April.
Where: Earth
Why: The 2012 end-of-the-world theorists need more arguments to favour their predictions.
by ALONSO DOMINGUEZ SANCHEZ TERUEL
Published: Mon Mar 29, 2010
Let's face it, we live for novelty. The faint hint of new gets us off like nothing else. Be it world phenomena, fashion, architecture or a quirky gadget, we crave the forthcoming and the expectation kills us. Here are 10 anxiously anticipated gadgets, places and events arriving in 2010. We can't wait. Can you?
The Apple iPad
What: A 9.7 inch personal computer tablet, operated entirely by a touch screen
Who: Apple
When: The first generation goes on sale April 3rd
Where: www.apple.com
Why: As with all Apple products, resistance is futile.
Soho House Berlin
What: six floors, 40 rooms, three restaurants and a rooftop pool in a pre-war architectural paragon in East Berlin
Who: Soho House, www.sohohouseberlin.com
When: May 4th (announced)
Where: Torstrasse 1, Berlin
Why: A tan looks better from atop a former GDR official building.
Takashi Murakami Takes Versailles
What: An exhibit by the famed "Japanese Andy Warhol." This will be his first large-scale retrospective in France, which will be in the Hall of Mirrors and the apartments of the King and the Queen.
Who: Artist Takashi Murakami
When: 12 September - 12 December 2010
Where: Versailles, France
Why: Jeff Koons' controversial exhibit at the palace left us wanting more.
Kenmare Lands in Nolita
What: NY's restaurant du jour gives the displaced, grungy denizens of Beatrice a place to call home.
Who: Nur Khan (Rose Bar), Paul Sevigny (Beatrice Inn) and Joey Campanaro (Little Owl) are behind the counter and every A-lister in town on the tables.
When: Now
Where: 98 Kenmare Street, New York, NY
Why: Olivier Zahm, Chloe Sevigny and Anouk Lepere need a new hang out spot in New York.
Alexander McQueen's New Creative Director
What: The eagerly awaited announcement of the fashion genius successor
Who: Officially, no name yet, but unofficially, Gareth Pugh's future is looking bright indeed.
When: Soon, very soon
Where: Keep checking insider blogs
Why: Lady Gaga needs a new oufit, pronto!
Wireless Electricity
What: Exactly that, no more wires
Who: Eric Giler , CEO of WiTricity. Check out his demostration at the TED conference last year, www.ted.com.
When: Rumour has it, we should see the first hint of commercial use by the end of the year.
Where: Eventually every household in the world
Why: Wires are just ugly.
3D TV
What: 3D television, plus 3D glasses, Avatar in 3D BluRay, the works
Who: At the moment, Phillips seems to be at the head of the pack.
When: The first fully commercially 3D TVs should be available by May.
Where: China and Japan have released their own 3D TVs and the West will follow shortly.
Why: Why should geeky 3D glasses be limited to theatres alone?
Masdar City
What: The world’s first carbon neutral city
Who: The Abu Dhabi Future Energy Company (ADFEC) and Brit firm Foster & Partners
When: Possibly the end of the year. Though the completion date has been changed several times, so there are strong doubts the project will be completed as scheduled.
Where: UAE
Why: Why not?
Shanghai Comes Out
What: Shanghai’s 2010 Expo will explore the potential of urban life in the 21st century.
Who: 200 countries from around the world
When: 1 May - 31 October 2010
Where: Shanghai, China
Why: According to Shanghai's 2010 Expo website, China owes its successful bid to “the expectations the world's people place on China's future development.“
Seven Billion People
What: World population to hit seven billion
Who: You, me and billions more
When: It's predicted to happen in November, but the US will provide more accurate data after the census in April.
Where: Earth
Why: The 2012 end-of-the-world theorists need more arguments to favour their predictions.
Monday, May 3, 2010
College Investors Bank On Gainful Employment Rule Easing Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201003241201dowjonesdj
ollege Investors Bank On Gainful Employment Rule Easing
By Melissa Korn, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Stocks of for-profit college operators have soared in the past two months as concerns about the federal government implementing harsh regulations on the sector begin to ebb.
Whether that sense of relief is merited, however, is up for debate.
Recent comments from members of Congress, and even from the Department of Education itself, are giving investors hope that the government may soften its proposal to penalize schools whose students graduate with large loans and low- paying jobs. The issue comes under the guise of "gainful employment," which fundamentally questions how well schools prepare their students to get jobs that can cover their educational debt.
The stocks of companies such as Bridgepoint Education Inc. (BPI), Career Education Corp. (CECO) and Corinthian Colleges Inc. (COCO) initially dipped after the proposal was announced in late January. It recommended that programs whose graduates have a debt-to-income ratio above 8%, or who don't meet certain other criteria, lose access to Title IV federal financial aid - the main revenue source for the for-profit schools. Opponents say the rule could force schools to lower their prices.
The schools' stocks started rising in mid-February as short-sellers, believing no more negative news would come for months, started covering their positions. The Education Department likely will release an official proposal in June, open for public comment, and a final rule in November. Any changes won't go into effect until July 2011.
Shares have been on a tear since. Bridgepoint is up 63.8% since the rule was proposed, while Career Education has gained 42.3% and Corinthian is up 41.1%. American Public Education Inc. (APEI), Grand Canyon Education Inc. (LOPE) and others have also outpaced the market. The Russell 2000 Index is up 12.1% in that time.
Some saw a boost when Education Secretary Arne Duncan testified in front of the House Education and Labor Committee March 3 that the department is "by no means wedded to any one direction" on the rule. "We don't want to be overly heavy-handed," he said.
Four committee members, including two Democrats, expressed concerns about the proposal during the question-and-answer period.
On March 11, the Congressional Black Caucus circulated a letter for members to sign and send to Duncan noting their distaste for the rule.
But congressional disappointment might not have much impact.
"While certainly a positive step, a letter is only a letter," said Ariel Sokol, an analyst with Wedbush Securities, regarding the Congressional Black Caucus's missive. "This is not a legislative process," he added, as Congress ultimately has no say in what rule the department adopts.
Congress does have a say on the upcoming reauthorization of the Elementary and Secondary Education Act, though, which some believe could put Duncan in a tight- enough spot to make concessions to ensure passage of that bill.
"The department easing up would be a small price to pay to accommodate everyone," said Trace Urdan, a research analyst and managing director at Signal Hill Capital Group.
Harris Miller, head of the Career College Association, an industry trade group, says he has had talks with the department about the gainful-employment language. "I know from various conversations that the Department is increasingly aware of these concerns," he wrote in an email. "But whether this increased attention will divert them from their path remains to be seen."
Jeffrey M. Silber, managing director at BMO Capital Markets, agrees. He wrote in a note to investors Wednesday, "We believe nobody outside of the Department of Education has true insight into how the language has changed." He expects that the initial proposal will be watered down "a bit," but some type of debt ceiling will still be implemented.
An Education Department official said the office is working on the language and couldn't comment further.
Even if the ultimate rule is softened, some fear the schools most affected - those whose students default on their debt or who graduate into low-paying jobs - may not disclose the potential impact on their bottom line early enough. That could force the industry into another cloud of uncertainty like the one under which it hovered for much of last year as investors waited for the government to introduce the list of regulations it would seek to revise in the first place.
"Investors would be ill-informed to think that we're out of the woods, by a long shot," Sokol said.
- By Melissa Korn, Dow Jones Newswires; 212-416-2271; melissa.korn@ dowjones.com
Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201003241201dowjonesdjonline000435&title=college-investors-bank-on-gainful-employment-rule-easing#ixzz0muVcFGRi
By Melissa Korn, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Stocks of for-profit college operators have soared in the past two months as concerns about the federal government implementing harsh regulations on the sector begin to ebb.
Whether that sense of relief is merited, however, is up for debate.
Recent comments from members of Congress, and even from the Department of Education itself, are giving investors hope that the government may soften its proposal to penalize schools whose students graduate with large loans and low- paying jobs. The issue comes under the guise of "gainful employment," which fundamentally questions how well schools prepare their students to get jobs that can cover their educational debt.
The stocks of companies such as Bridgepoint Education Inc. (BPI), Career Education Corp. (CECO) and Corinthian Colleges Inc. (COCO) initially dipped after the proposal was announced in late January. It recommended that programs whose graduates have a debt-to-income ratio above 8%, or who don't meet certain other criteria, lose access to Title IV federal financial aid - the main revenue source for the for-profit schools. Opponents say the rule could force schools to lower their prices.
The schools' stocks started rising in mid-February as short-sellers, believing no more negative news would come for months, started covering their positions. The Education Department likely will release an official proposal in June, open for public comment, and a final rule in November. Any changes won't go into effect until July 2011.
Shares have been on a tear since. Bridgepoint is up 63.8% since the rule was proposed, while Career Education has gained 42.3% and Corinthian is up 41.1%. American Public Education Inc. (APEI), Grand Canyon Education Inc. (LOPE) and others have also outpaced the market. The Russell 2000 Index is up 12.1% in that time.
Some saw a boost when Education Secretary Arne Duncan testified in front of the House Education and Labor Committee March 3 that the department is "by no means wedded to any one direction" on the rule. "We don't want to be overly heavy-handed," he said.
Four committee members, including two Democrats, expressed concerns about the proposal during the question-and-answer period.
On March 11, the Congressional Black Caucus circulated a letter for members to sign and send to Duncan noting their distaste for the rule.
But congressional disappointment might not have much impact.
"While certainly a positive step, a letter is only a letter," said Ariel Sokol, an analyst with Wedbush Securities, regarding the Congressional Black Caucus's missive. "This is not a legislative process," he added, as Congress ultimately has no say in what rule the department adopts.
Congress does have a say on the upcoming reauthorization of the Elementary and Secondary Education Act, though, which some believe could put Duncan in a tight- enough spot to make concessions to ensure passage of that bill.
"The department easing up would be a small price to pay to accommodate everyone," said Trace Urdan, a research analyst and managing director at Signal Hill Capital Group.
Harris Miller, head of the Career College Association, an industry trade group, says he has had talks with the department about the gainful-employment language. "I know from various conversations that the Department is increasingly aware of these concerns," he wrote in an email. "But whether this increased attention will divert them from their path remains to be seen."
Jeffrey M. Silber, managing director at BMO Capital Markets, agrees. He wrote in a note to investors Wednesday, "We believe nobody outside of the Department of Education has true insight into how the language has changed." He expects that the initial proposal will be watered down "a bit," but some type of debt ceiling will still be implemented.
An Education Department official said the office is working on the language and couldn't comment further.
Even if the ultimate rule is softened, some fear the schools most affected - those whose students default on their debt or who graduate into low-paying jobs - may not disclose the potential impact on their bottom line early enough. That could force the industry into another cloud of uncertainty like the one under which it hovered for much of last year as investors waited for the government to introduce the list of regulations it would seek to revise in the first place.
"Investors would be ill-informed to think that we're out of the woods, by a long shot," Sokol said.
- By Melissa Korn, Dow Jones Newswires; 212-416-2271; melissa.korn@ dowjones.com
Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201003241201dowjonesdjonline000435&title=college-investors-bank-on-gainful-employment-rule-easing#ixzz0muVcFGRi
VP Marketing/Business Development - Southwest OPEN salary + equity
Have you taken a school public? Send your qualifications and resume to hshepard@dshefrin.com
Must have a Masters Degree & experience in the Online Education Marketing & New Business Development arena.
Experience: 10+ years
Salary is OPEN - may be potential for equity.
This is in the Southwest for a Reg Accredited online institution
Must have a Masters Degree & experience in the Online Education Marketing & New Business Development arena.
Experience: 10+ years
Salary is OPEN - may be potential for equity.
This is in the Southwest for a Reg Accredited online institution
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