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Jul 28, 2011


Adam Zagorin


Watchdog groups and even members of the Senate do not have the ability to investigate and resolve the most important question involving short sellers and Arne Duncan's team at the Dept. of Education.

That question is whether short sellers used material, market-sensitive, confidential information supplied by Dept. of Education officials to trade in the shares of for-profit education companies.

This kind of investigation is typically carried out by the Securities and Exchange Commission, which is empowered to examine trading and other financial records. Various US senators and others have already called for such an investigation.

Such an inquiry could resolve that element of the controversy, one way or the other, as a matter of fact.

Documentary evidence indicating that material, market-sensitive, confidential information was given to short sellers raises the obvious question as to what those short sellers did with the information they received.


There has been nothing but talk about 'investigating' the links between Arne Duncan's team and Wall Street short sellers for about 1 year now. Obviously these knights of gov't accountability and good governance are doing nothing more than flashing their false teeth; all flash, but no real bite.

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