Patience, folks. No one, not Dept of Ed or anyone else, can literally force ITT's CEO, Kevin Modany, to come out of his headquarters in Carmel, IN, and give a press conference. No one can force him to write an email to his 40,000 students and his thousands of employees. Modany and ITT's board of directors try to maintain strict secrecy, and it is not in their nature to share.
But now Dept of Ed is using their muscle on Modany by threatening ITT's access to federal student loan money, so that Modany will finally take responsibility and inform students, employees, stockholders, and the public how he is managing the billion dollars of federal student loan money he took in last year.
The timing of this crisis is annoying to students. But it is better that it comes now, right after finals, and before classes are due to start, then in the middle of the quarter.
Blindsided? That is understandable. But many events over the past few years have led up to this moment. Unfortunately, Modany did not inform students and employees of anything all that time. Modany was accused of fraud a couple years ago, for not telling his stockholders about questionable loans he was messing with, and he will eventually have to pay for this. The wheels of justice are turning slowly.
For years, many employees, and former students, as well as concerned citizens, have been trying to publicize ITT's behind-the- scene activities, so that fewer students would be blindsided. Any information available today has spread through online forums and blogs, like this one, a few newspapers, SEC filings on the ESI website, and a few publications by Dept of Ed and ACICS.