http://www.bloomberg.com/news/2014-07-07/corinthian-takedown-signals-tougher-education-agency-enforcement.html?cmpid=yhoo..."ITT Educational, based in Carmel, Indiana, is also facing stricter enforcement of Education Department rules, Tarkan said. Told by the Securities and Exchange Commission that it must restate its finances going back to February 2013 to properly account for student-loan liability, the company wasn’t able to submit required financial documents to the agency.
ITT Educational alerted investors that, because of the compliance issue, it may have to provide the department with a letter of credit worth $80 million to remain eligible for government funds. While ITT Educational’s balance sheet can absorb the blow, it’s another signal of a tougher agency stance, Tarkan said.
“The companies with less flexibility from a capital standpoint are the ones to be concerned about,” he said. “If you’re a for-profit college that’s had regulatory pressures, capital pressures, you have to think about this more seriously than ever before.”'