Thursday, October 17, 2013

S&P Unaware of Pending Rebound in Legal Education, May Downgrade Brooklyn

Standard & Poor may downgrade Brooklyn Law School's debt:
In a report, the credit ratings agency lowered its outlook on the school's debt, issued by the New York State Dormitory, to negative from stable.
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In a statement, a spokesman for the law school acknowledged S&P’s concerns but added, “We are highly confident that, despite these challenges, Brooklyn Law School will continue to do well.” He also noted that Moody’s Investors Service reconfirmed a stable outlook on the school’s debt two months ago.
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Headcount decreased 10% to 1,137 this fall from a year ago and 22% over the last three years, the ratings agency said.
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For the fiscal year ended, June 30, 2012, Brooklyn reported a $996,000 operating deficit, the report said.
Obviously, S&P is underestimating the future of law school, this one in particular.  A million dollar deficit?  Shit, Joan Wexler made 1.3 million in 2011.  You could cut salaries at the school from stupendously ridiculous to merely exhorbitant and - bam! - you've got a profit.  Plus, Brooklyn has a long way to go down in finding new lemmings to harvest.  And as the unindentified spokesman pointed out in the article, Brooklyn is launching a two-year program that will substantially increase revenue if you live in fantasydemandland, where the AALS owns a time share and some mineral leases.

7 comments:

  1. I hope the bankruptcy happens within the next few years. That way, the trustees can demand restitution for the many arbitrary conveyances to unnamed persons who did nothing to improve the institution.

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    1. A fun test will be if a law school declaring Chapter 11 is grounds for revoking accreditation.

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    2. I wish that huge increases in tuition had been grounds for revoking accreditation. Or that excessive compensation to management had been sufficient cause to chain the doors and board up the windows.

      I know, I'm dreaming...

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  2. @ 5:00 am,

    I seriously doubt that this trash pit will declare bankruptcy. At some point, the pigs will reduce the number of employees - with janitors, groundskeepers, staff members, and junior faculty coming first, of course. In the alternative, they will become even less selective in order to keep up enrollment, i.e. "Look, this applicant wrote in his essay that he likes women's feet. He also had a 3.1 from State U and got a 149 on the LSAT. He'll make a fine law student!"

    Anyway, if any such commode declared Chapter 11, that might be grounds for the ABA cockroaches to give the school a higher level of accreditation, if any exists. Hell, look at the in$TTTTTiTTTTTuTTTTTion$ that these dolts have approved recently.

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  3. When will our central bank start purchasing the debt of law schools to stimulate the debt-driven economy? Soon, I hope, or hundreds employed by Crooklyn Law School with no marketable skills will be trust upon the nation's welfare rolls.

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  5. Notice that Moody's didn't say anything good about this NYC garbage pit. They just said it isn't getting any worse.

    I'm curious to know what the S&P rating on the bonds is. Maybe BB or so? They may have been fortunate so far to stay above junk bond status, which as I understand it begins at CCC.

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