Saturday, September 20, 2014

Fourth Tier Trash Heap Thomas Jefferson School of Law Defaults on $133 Million in Bonds


http://abovethelaw.com/2014/09/thomas-jefferson-law-defaults-on-its-bonds-may-be-forced-to-cease-operations/

Truly Great News!: On September 16, 2014, Staci Zaretsky posted an epic ATL article, which was entitled “Troubled Law School Defaults On Its Bonds, May Be Forced To Cease Operations.” Look at this scintillating opening:

“While it’s true that things have been spiraling downwards for law schools since the Great Recession, it wasn’t until 2011 that things really got out of hand. That was when the very first class action lawsuit about deceptive employment statistics was filed against the Thomas Jefferson School of Law. Little did we know that it would prove to be a harbinger of doom for the school.

About a year ago, we brought our readers the sad news that TJSL had conducted faculty and staff layoffs in an effort to free up funds. Not only had it suffered a blow to its enrollment, but it was also struggling to pay off the $133 million debt it accumulated after opening its new campus building in 2011.

To make matters infinitely worse, in December 2013, Standard and Poor’s released news that it had downgraded the credit ratings of a slew of stand-alone law schools. TJSL was one of the downtrodden schools whose credit standing was downgraded to B+, junk bond status with a negative outlook.

Now, we’ve got news that could have disastrous effects for the law school. It seems that TJSL has defaulted on its bonds, and it may be unable to remain in operation due to its financial predicament…

Today, we received an Event Filing and Consent and Forbearance Agreement concerning TJSL’s bonds. Per the filing, TJSL defaulted on its bonds on June 26, 2014, by failing to make the required payments.” [Emphasis mine]

As you can see, the law school pigs believed that good times – for them, not the students – would never end. This is why the cockroaches engaged in a ridiculous spending spree. Check out this fancy law building the bastards purchased.

http://www.tjsl.edu/news-media/2014/12146

Third Mo$TTTT Impre$$ive Law School Building in the Country: Hell, as recently as August 5, 2014, the pile of raw sewage was thrilled to announce that “TJSL Ranks #3 of Most Impressive Law School Buildings by Best Choice Schools.” From the press release:

“Best Choice Schools, a site dedicated to providing relevant information about educational institutions, has included Thomas Jefferson School of Law among the 50 Most Impressive Law School Buildings in the World. Thomas Jefferson School of Law was ranked third and achieved the highest rank of any U.S. school.”

No one gives a damn whether the law building is seen as a jewel – if you can’t find a job after graduating from this fourth tier pile of excrement. The toilet spent a fortune on this project – and now the day of reckoning approaches.

http://online.wsj.com/public/resources/documents/lawschoolcredit.pdf

Standard & Poor’s Wipes Its Ass With TJ$L: The Wall Street Journal provided a link to the Standard & Poor’s Ratings Services report noted above. On page 9 of this PDF, read the following:

Thomas Jefferson School of Law, Calif. Countering the overall trend, Thomas Jefferson School of Law (B+/Negative) had expanded enrollment until a slight decline for fall 2013 and has historically generated positive operations on a full-accrual basis. However, operating surpluses have not boosted financial resources fast enough and, as a result, the law school has violated its balance sheet covenants for fiscal 2012 and fiscal 2013. Management does not anticipate meeting the financial covenants until 2018; violation of the covenants cannot result in an acceleration of the debt, however. We believe the law school's large amount of debt and very high debt service, which resulted from the construction of a new facility that the school put into service during 2011, are credit weaknesses. In our opinion, there is also enrollment risk given the declining number of law students nationally and recent weakness in headcount that will likely compress operating margins, particularly since the school has no track record of fundraising.” [Emphasis mine]

Yes, what a pre$TTTTigiou$ in$TTTTiTTTTuTTTTion, huh?!?! You’re welcome, bitches! You grew fat and happy on the corpses of young people. Now, you are reaping what you sowed, you vile rodents.

http://taxprof.typepad.com/taxprof_blog/2014/09/thomas-jefferson-law-school.html

Other Coverage: Paul Caron published an entry labeled “Thomas Jefferson Law School Defaults on $133m of Junk Bonds, Hopes to Restructure Debt and Remain Open” – back on September 17, 2014. Read this gem:

“Thomas Jefferson's students have the lowest bar exam pass rate (50%) among California's 21 ABA-accredited law schools; the second-fewest full-time, long-term jobs as lawyers (29%) within nine months of graduation among California's 21 ABA-accredited law schools; and the most law school debt ($180,665) among the nation's 200 law schools. Thomas Jefferson's latest available Form 990 lists the Dean's total compensation as $528,430 and nine other faculty and [administrators] with total compensation in excess of $175,000.” [Emphasis mine]

For $ome rea$on, the filthy swine insist on HUGE, unjustified salaries – even as enrollment drops. But they care about the students, right?!?!

Conclusion: TTTThoma$ Jeffer$on Sewer of Law is on the ropes. Let’s put these pigs’ faces, snouts and asses in the dirt! Keep the heat on these bastards, and don’t allow them to recover. California has a monumentally GLUTTED lawyer job market. As Caron noted in his blog, this dung heap’s grads have the lowest bar passage rate of California’s 21 ABA-accredited diploma mills. How many thousands of young men and women have been FINANCIALLY RAPED by this commode?! Now, it is time for the cockroaches to burn to a crisp.

53 comments:

  1. Forgive them Father for they know no what they do (the Lemmings).

    This is simply appalling.

    ReplyDelete
  2. As an aside:

    My law school once sent a promo piece of 16 pages, full color. It had a sidebar article which CALCULATED the number of pages per professor ratio of law review published articles over the prior year. Something on the order of bushels of corn processed per hour at a grain elevator. And, of course, THE MORE THE BETTER. As if quantity was a virtue.

    The shortest AND MOST INFLUENTIAL academic statement of which I am aware is:

    E = mc(squared) Einstein.

    So, I have notice that long comments are "reviewed" whereas short comments are published immediately.

    Beware the Borogoves who are able to condense.

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  3. It's not such "great news" for the bondholders. They're the ones who got hurt; TJLS will be just fine, thank you.

    None of those articles say what kind of interest rate the school was paying out. I've personally looked into buying some bonds from nearby Stanford U.

    The difference? Stanford is AAA-rated and pays out 5 percent in interest each year. In order to compete, TJLS would have likely promised a much higher (read: unsustainable) rate of return.

    ReplyDelete
    Replies
    1. Hmmmm. Not sure that buying Stanford bonds is actually morally superior. You're still encouraging a college to spend rampantly. That 5% return? Yeah, it's coming from increased tuition.

      Repeat after me: Education Should Not Generate Profits.

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    2. ^ Why the hell shouldn't it? Other than a bunch of name-calling, that is?

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    3. because we live in a country where people are becoming more and more stupid with each generation, and if we want to compete globally we need educated people, not debt-ridden, college-educated morons fighting over what few decent jobs are left.

      Delete
  4. that building was so nice.

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  5. How much did that fucking building cost?

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  6. This just screams "GET OUT NOW!" Don't borrow another dime to attend this place. Don't even waste a dime applying there.

    This place is going down, and it's obvious that the people running it don't give a fuck who they're taking down with them.

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  7. Someone asked about the law school building at TTTThoma$ Jeffer$on Sewer of Law. The pigs estimate that expenditures were $90 million. Check out the following portion of this PDF, “TJSL: A New Era in Legal Education.” This information is from the bottom of page two:

    http://www.tjsl.edu/sites/default/files/files/TJSL-Handout-v7-072711-Edit-opt.pdf

    “CONSTRUCTION & DESIGN FACTS

    Groundbreaking: October 29, 2008
    Opened: January18, 2011
    Gross Square Footage: 305,000
    Estimated Cost: $90,000,000
    Financing: CSCDA Tax Exempt Bonds
    Executive Architect: Carrier Johnson
    Contractor: Bovis Lend Lease, Inc.
    Design Architect: S2 Architecture
    Interior Design: ID Studios
    Owner’s Representative: Midwest General”

    According to Paul Caron, this trash pit defaulted on $133 million in junk bonds. Again, this is his term, not mine. Several others have also made the observation, in reference to S&P’s downgrade of TJ$L.

    Now, head to the top of page four of this document:

    “GOING FOR THE GOLD

    The law school anticipates a Gold Level certification from the Leadership in Energy and Environmental Design (LEED) Green Building Rating System TM of the U.S. Green Building Council, which will make Thomas Jefferson School of Law one of the few law schools to achieve this prestigious status.”

    How ironic! The swine were obviously going for more money, which is what “higher education” is ALL about. They incorrectly figured that the building and other structures would lead to a higher profile, thus attracting more applicants and students. Now, the bitches and hags apparently, cannot meet the payments on their bonds.

    It feels GREAT to see that these swindlers and cockroaches are starting to feel the pinch. Imagine how scared these supposed “legal scholars” are to enter the real workforce. They will have a difficult time adjusting to the expectations of producing results and being efficient. Plus, there will be no “academic freedom” to stop them from getting canned. Also, how many employers want to hire some idiot who “works” 4-6 hours a week – but is accustomed to being paid six figures?!?!

    ReplyDelete
  8. Tear down the building and put a petting zoo there.

    ReplyDelete
    Replies
    1. Or enroll the zoo animals at TJ. They would raise the median LSAT.

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    2. That reminds me. I recently read that wolves have an average IQ of 20, higher than the average of 17 for German shepherds.

      Delete
  9. I am willing to admire their fancy new building since the cost of its acquisition may put the school out of business.

    You wouldn't think that a law school with both one of the highest debt loads for graduates and one of the worst employment rates could get any more scammy, but it has.

    In 2011, its incoming class had a median LSAT of 151 (48th percentile of test takers). For the incoming class of 2013, the median was 146 (29th percentile of test takers). One quarter of the incoming class of 2013 scored 143 (20th percentile or below).

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  10. I WAS JUST GOING TO EMAIL NANDO ABOUT THIS! It looks like TJ will be the first trash pit to close at this rate.

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  11. Just to put some perspective on this, after giving it some thought, the average nice mansion (well, what I would consider "nice" is between $5-7 million. Let's go with the upper end and take $7 million. I wanna be comfortable.

    If we go with the $7m figure, I can own about 13 "comfortable" homes, in Fla. of course, at approx. $90m total. If we go with the $5m figure, I can have 18 such homes.

    TJLS built this monstrosity on the backs of financially crippled Debt Serfs who can't even enjoy it (cough!) beyond 3 years or so.

    The Scam needs to end. Close to 9 figures for a monument to greed.

    Unconscionable.

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  12. This sums it up nicely:

    http://taxprof.typepad.com/taxprof_blog/2012/08/are-law-.html

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  13. Cool! Now I can rent out part of the building for my sleazy private detective agency Magnum/Gunn.

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  14. TJSL doesn't give a shit about its students or taxpayers. I suspect they don't give a shit about their investors or creditors either. They'll walk away from this mess. If anyone hires any of these (soon to be unemployed) assholes, they deserve what they get.

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  15. Now, now, y'all. Before y'all start raggin' on TJSL, let's put their actions in perspective w/ another well-known school and give them credit where credit is due.

    Let's see, TJSL, in order to get more prestigious, built one hell of a building. Thomas Cooley also had the same goal. Did they build one giant, $90 million dollar building that at least Nando could put a link to when he wrote about them two weeks ago, just like he did in today's post about TJSL, so that we could all go "oooo" and "ahhh" and be impressed with the pretty building?

    No, typical Cooley style - their bang for their buck is spending several million to PUT THEIR NAME ON A FRICKIN BASEBALL STADIUM. Yup, that's their claim to fame. So before y'all bitch about TJSL mismanaging their money, realize that they at least had the decency to invest in a beautiful building THAT THEY COULD SELL. Can you see Thomas Cooley, trying to resell their name on a stadium? Or better yet, can you imagine how helpful it will be to Cooley students' future job prospects, to have the Cooley name on a baseball stadium in Michigan?

    Example: Cooley graduate in New York, in his first job interview after graduating from law school...

    Managing Partner: So, your resume says you went to Cooley Law School...Isn't that the school that ....

    Law Graduate/Job Candidate: (Interrupting) - "Yes Sir - That's the school that has it's name all over the Little Sluggers Baseball Stadium! I had no idea you would know about that all the way from New York, Sir!"

    Managing Partner: "Well, you must know a lot about mergers and acquisitions, son. You're hired! You can start on Monday!"

    Yes, there are some schools that could care less about the prospects of their graduates and students. Then there are other schools that care even less.

    ReplyDelete
  16. TJSL is the worst form of scam. What type of sociopath takes advantage of people stupid enough to sign up at a school with the lowest job prospects and highest debt load? Agreeing to pay for a degree from this dump is prima facia evidence of mental incompetence. How can the bar defend giving someone this slow a license to practice??? This reminds me of a 60 minutes segment where these scammers robbed people suffering from a terminal illness with promises of a cure. Truly sick.

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    Replies
    1. I think I remember that segment. This isn't any different, you're right. Same thief mentality. Completely reprehensible.

      Multiply this by the great majority of law schools. IMO, it's the same at 95% of these places. That's why the majority need to be shuttered.

      Delete
    2. If you were to go to law school in California you would be much better off going to the online law school Howard Taft than Jefferson. I think tuition for a degree at Taft is only $16,000 and even though your chances of passing the California bar exam is only 20% at least your tuition's only cost the price of a Hyundai Accent rather than the price of a decent home in most parts of the country. Either way, both a Jefferson and Taft graduate will be unemployed lawyers but the Taft graduate will not be saddled with monstrous debt. Come to think about it, a Taft grad looks much more intelligent doing the cost/ benefit analysis than a Jefferson graduate.

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    3. Not to mention you would have an easier time hiding your jd if you went online. As we're learning, if you don't get a lawyer job the jd will hurt your chances of jobs in other fields.

      Delete
  17. All of the law schools are thieves. Even HYS. Everything's theory at those places. The real world of law practice is nuts and bolts. People skills. Bringing in business. You don;t learn those things at even the top law skools.

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  18. On September 17, 2014, Paul Campos published an epic blog entry, which was entitled “Thomas Jefferson School of Law about to go under?” Check out this stellar opening:

    http://www.lawyersgunsmoneyblog.com/2014/09/thomas-jefferson-school-law-go

    “Thomas Jefferson is a big, although shrinking, ABA law school in San Diego, featuring horrible employment statistics (less than three in ten graduates have legal jobs nine months after graduation), terrible bar passage rates (over the past three years less than half of the school’s graduates who have taken the California bar have passed), and mind-boggling debt figures (the 2013 class took out an average of $180,000 in law school loans, which means its members had an average of around $215,000 in law school debt alone, not counting undergraduate debt, when their first loan payments became due in December).

    A few years ago, this institution decided it would be a good thing to build a swank 305,000 square-foot eight-story building in downtown San Diego, at a cost of around $90,000,000. The project, which was completed in 2011, was beset by litigation over “alleged construction flaws and unpaid debts.”

    The project has also been plagued by remarkably bad timing, as it opened just as the law school reform movement was generating the kind of major media coverage that led to a crash in applications to law schools generally, and to TJSL in particular. Applications to the school plummeted by more than 50% between 2010 and 2013, and even moving to a de facto open admissions policy (acceptance rates went from 45% five years ago to 80% last year) hasn’t stopped the student body from contracting.

    Even as of July 2012, the school’s tax filings revealed an already-precarious financial situation, as revenue was failing to meet expenses, and the school’s assets consisted almost entirely of the new building and the land on which it sits (remarkably, the school, which is 45 years old, has literally no endowment). Meanwhile the school was carrying $92.5 million in bond liabilities, which in turn were requiring nearly $11 million per year in debt service. In addition, the building and land are apparently subject to what was as of two years ago a $33.4 million dollar mortgage.”

    Evidently, this massive building spelled financial ruin for the commode. The pigs had terrible timing, as Campos noted. Constructing a $90 million structure – while having a tiny endowment – is beyond idiotic. Alumni donations must be pathetic. Due to their precarious situation, this FOURTH TIER TRASH PIT is almost entirely dependent on student loans – for most of its operating budget. As such, the cockroaches need large class sizes.

    http://www.guidestar.org/FinDocuments/2012/330/696/2012-330696561-09755223-9.pdf

    According to page one, line 22, of the toilet’s 2012 Form 990, Thomas Jefferson Sewer of Law only had net assets or fund balances of $18,508,728 – as of June 30, 2012. On line 12 of the same page, you will see that this cesspool received $51,004,159 in total revenue for the period of July 1, 2011 through June 30, 2012. In the same time span, the pigs spent $51,034,447. This info is on line 18. The bastards actually went over budget by a total of $30,288.

    Based on the info above, it seems that this laughingstock of a law school is in SERIOUS financial trouble. Perhaps, the investors would be better off boarding up this dung pit – and selling the property. The swine receive large amounts of federally-backed student loans - every single, damn year - and they still can’t run a “business.”

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  19. Man who shot mother, self, was Vermont law school student

    http://www.reformer.com/ci_26556913/man-who-shot-mother-self-was-vermont-law?source=rss_viewed

    ReplyDelete
    Replies
    1. And a Vermont law professor shot herself dead a little while ago too. Maybe they should open up a gun safety legal clinic.

      Delete
    2. It's tough being a law professor.

      Delete
  20. How very convenient that they avoided default till this class had started. Current students should think long and hard about continuing. At a minimum, they should investigate a leave of absence, to make certain school does not collapse immediately.

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    Replies
    1. To add to this, TJL actually missed their JUNE payment, but got a deferral till October (although they have paid some of the June payment). Talk about taking money from students without full disclosure!!!

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    2. Sadly, many will not take advantage of the dischargeable loan option since many will choose to finish their shitty legal education at another school. Dumbfucks, all of 'em.

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    3. Agree with this guy^^^^ It'll be like getting magic beans and using them to make a 3-bean salad.

      Delete
  21. So...lemme get this straight.

    (1) TJSL has the lowest bar passage rates of any ABA California law school;
    (2) It has the highest law student debt average of any ABA law school;
    (3) It's got a tiny, little endowment;
    (4) It basically went broke for the new law building;

    AND they're still getting dumbshits to sign on the dotted line?? Where are they finding these people from? I mean, shit are they getting homeless people in San Diego to enroll or something?

    ReplyDelete
  22. Check out their 509 filing - they have a decent entering class size, in the 300s, but they are losing 30% of 1Ls and 10% of 2Ls to drop outs, fail outs, and transfers. They also have a 50-60% bar passage rate - that actually makes their employment statistics look a little better, since only half the graduating class even qualifies for a lawyer job. It looks most of the top 20% or so of each 1L class (the kids most likely to pass the bar and get a lawyer job) transfers out - not a sign of a healthy institution.

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  23. Meanwhile, the sound of crickets chirping at the ABA Section on Legal Education....

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    Replies
    1. Yes, it is appalling that the ABA is not saying anything. I guess they figure that any students left out in the cold can transfer. Of course, that may not work so well for students on financial aid, students going to school at night and working days (who may not be able to find comparable jobs elsewhere), married students who spouse/SO works, students living at home with parents. Does anyone care?

      Delete
    2. So where is the ABA on all of this?

      With the world its "standards" accredit, dissolving before its eyes, is there no self-reflection, that perhaps, it got it all wrong?

      And if so, where is its proposal to remediate the havoc its standards have created?

      Finally, just who sets those "standards?" The ABA because its standards will properly educate lawyers to begin practice and serve clients, or whose standards are set by law school administrations and professors who want to limit the effort they expend teaching and to conceal their lack of practice experience to preserve their exorbitant incomes, relative to the work they do?

      The relationship between the ABA and the law school/law professor "industrial complex" needs to be HAMMERED MERCILESSLY until shattered.

      Delete
  24. On September 17, 2014, the ABA Journal published a Debra Cassens Weiss piece entitled “Law school misses bond payment, seeks to restructure obligations.” Here is the full text of that article:

    http://www.abajournal.com/news/article/law_school_misses_bond_payment_seeks_to_restructure_obligations

    “Thomas Jefferson School of Law is “engaged in constructive dialogue” to restructure its obligations to bondholders after missing a June 26 payment.

    In a statement provided to Above the Law, the school says it has paid most of the June payment, and it has an interim agreement running through Oct. 16 in which bondholders won’t exercise their remedies. Thomas Jefferson School of Law is “confident that a consensual restructuring will occur,” the statement says.

    “The parties have a mutual interest in restructuring the law school’s debt in a way that will allow the school to remain in operation and prosper,” the school’s statement said. “As part of the negotiations, various potential structures and restructuring alternatives have been discussed. At the core of each alternative is ensuring the school can provide the educational experience required of an ABA accredited school and ensure the school’s long term success.”

    Above the Law broke the news of the default. The school opened a new campus building in 2011 and its financial obligations now total $133 million, the blog says.”

    Too bad the investors and the law school pigs aren’t in a “constructive dialogue” to flush this filthy, decrepit toilet down the drain. As dybbuk stated two days ago, in the comments above, if TJ$L accepted zoo animals in its first year class, it would likely raise the median LSAT for that school.

    Scroll down to the comments section. On September 17, 2014 at 11:16 am, “Great” wrote:

    “It is good to know that a law school's debts are dischargeable in bankruptcy.”

    In stark contrast, students of modest means who take out a mountain of NON-DISCHARGEABLE debt – in the pursuit of “higher education” – have no shot to write off their loans. What a great $y$tem, huh?!?!

    On September 20, 2014 11:16 am, a commenter using the handle “Pile of cash” posted the following remark:

    “Close it down and sell off the physical plant to developers. You could make a ton refitting the school as condos.”

    Hell, they ought to bulldoze this dump – and put in a strip mall. What better replacement for a TTTT law school than a shopping center with a tattoo parlor, dive bars, a nail salon, a nickel arcade and a Walgreen’s?

    ReplyDelete
    Replies
    1. You say this with an (to me..) appreciated sense of irony but at least those things would actually contribute to the local economy and such services are in demand vs. this academic Wal-Mart approach where the student loan money simply gets sent to Arkansas and distributed to the Wal-Mart billionaire clan minus overhead.

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  25. Law school enrollment is falling, falling, falling!

    Applicants for Fall 2010: ~87,900
    Matriculants Fall 2010: ~52,500

    Applicants for Fall 2011: ~78,500
    Matriculants Fall 2011: ~48,700

    Applicants for Fall 2012: ~67,900
    Matriculants Fall 2012: ~44, 500

    Applicants for Fall 2013: ~59,400
    Matriculants Fall 2013: ~39,700

    Applicants for Fall 2014: ~54,500
    Matriculants Fall 2014: ???

    God willing the decline continues uninterrupted for many years to come. We need far less than half of the current levels of new lawyers being pumped out by the machine. The Doc Review Schools, I mean Law Schools, outside of the top 50 or 60 in the country need to start closing. I think in five-six years time, that's exactly what we'll see happening.

    ReplyDelete
    Replies
    1. I'm estimating 35,000 - 36,000 matrics for 2014, but I have no evidence or methodology whatsoever to back it up.

      Delete
    2. YES!!!!!!!!!!!!!!!!!!

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  26. Look at this follow up story from Staci Zaretsky and ATL, which was published on September 22, 2014. The article was headlined “‘Little Prospect For Recovery’ For Troubled Law School Whose Credit Rating Took A Major Nosedive.” Focus on this wonderful opening:

    http://abovethelaw.com/2014/09/little-prospect-for-recovery-for-troubled-law-school-whose-credit-rating-took-a-major-nosedive/

    “Early last week, we broke the news that the Thomas Jefferson School of Law had missed a payment on its revenue bonds, triggering a default event under its current Loan Agreement. Luckily for the school, it was able to strike a deal with its bondholders to delay the unseemly business of ceasing its operations, at least until October 17, 2014. In the interim, TJSL is discussing “various potential structures and restructuring alternatives” with its bondholders, and is “confident” that it will be able to reach an accord in the near future.

    When we last checked in with this overly optimistic law school, TJSL was hoping that it would be able to “continue to prosper” after settling up with its creditors. But how is the law school supposed to reach this happy fate when its credit rating with Standard & Poor’s keeps getting downgraded lower and lower?

    Perhaps it’s time for Thomas Jefferson Law to remove its rose-colored glasses and embrace the fact that it shares the same financial woes as its own namesake. Will the school die in debt like our former president?

    Standard & Poor’s caught wind of the fact that the Thomas Jefferson School of Law had missed payments on its bonds and then failed to make payment in full shortly after we published our story here at Above the Law. The financial services company was not pleased, and proceeded to lower the law school’s rating to an embarrassing degree. Here’s some additional information from S&P (reg. req.) (gavel bang: TaxProf Blog):

    Standard & Poor’s Ratings Services lowered its long-term rating to ‘CC’ from ‘B+’ on the California Statewide Communities Development Authority’s series 2008A tax-exempt revenue bonds and series 2008B taxable revenue bonds issued for Thomas Jefferson School of Law (TJSL). At the same time, Standard & Poor’s placed the rating on CreditWatch with negative implications.

    “The rating action reflects our view of TJSL’s failure to make payments in full to the trustee of its June 26 loan payment, which secures the series 2008 bonds, and our anticipation that it will not make its Sept. 26 loan payment in full either,” said Standard & Poor’s credit analyst Carlotta Mills. We understand the school has made partial payments toward debt service, though we were unable to confirm from the trustee or the school if the debt service reserve has been drawn upon to pay bondholders.

    “The CreditWatch designation reflects our understanding that the school has had multiple forbearance agreements with its bondholders and that it is working toward a restructuring of the debt, due to be in place by Oct. 17,” continued Ms. Mills. We expect that the bonds will default once the restructuring is completed.”

    I am laughing my ass off right now!! This trash pit’s Standard & Poor’s long-term credit rating has been lowered to “CC,” from a "B+," people. This is excellent news! Just think of how many people these pigs have financially ruined, with their TTTT product.

    ReplyDelete
  27. Here is the link to Standard & Poor’s Ratings Definitions:

    http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245374586250

    “Long-Term Issue Credit Ratings

    7. Issue credit ratings are based, in varying degrees, on Standard & Poor's analysis of the following considerations:

    •Likelihood of payment—capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation;
    •Nature of and provisions of the obligation, and the promise we impute.
    •Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

    8. Issue ratings are an assessment of default risk, but may incorporate an assessment of relative seniority or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.)”

    Take a look at the definition of a “CC” credit rating – from the chart provided:

    “An obligation rated 'CC' is currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred, but Standard & Poor's expects default to be a virtual certainty, regardless of the anticipated time to default.”

    As you can see from Table 1, CC is the third-lowest possible standard rating available – not taking + or – designations into account. Hell, only a C or D is lower. Apparently, TTTThoma$ Jeffer$on Sewer of Law is in serious financial trouble.

    Have fun looking for real jobs, law “professor” parasites. Then again, you bitches and hags can open up your own boutique law firms. Perhaps, you will choose to “specialize” in landlord-tenant issues or constitutional law. Imagine the fear that will grip your adversaries, who merely have decades of experience representing individuals and corporations in legal matters!

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    Replies
    1. Nando-

      Your work lightens my old heart.

      "Flush" cesspools, but time to lay waste to the concept of "ABA as God."

      I believe the ABA "standards" to be a huge part of the evil of the system.

      Delete
    2. Can you start some method/survey to tabulate the number of those who have "passed" on law school based on their "scamblog" experience?

      Also, how can we, if possible, follow up on law professors who have been dumped or "run screaming" from the law school scam.

      Finally, can we not develop a "Hall of Fame" of law school administrators and law school professors who have been caught or shamed in this nightmare. (A brief bio, their notorious claim to fame, etc., so newbies can pick up the thread and become ready to engage.)

      "War is Hell."

      This is WAR.

      Delete
    3. So what does the scamblog community need to do to persuade enough 0L's to truly NOSEDIVE the law school fraud???

      Delete
    4. To All from a Boomer:

      THE ISSUE, and THE ONLY ISSUE, is convincing 0L's NOT to take the LSAT, NOT to apply to law school, and if they FAILED those simple tasks, NOT to enroll.

      I will say it again.

      I have 3 sons.

      One is an MD, radiologist.

      One is a civil engineer.

      One is a high school student (Help me???)

      I have told each of them:

      I do NOT approve your becoming a lawyer, in my footsteps.

      I will not support you if you want to become a lawyer.

      I will not pay for your legal education.

      I will pay for you to get a 4 year degree in a field in which you can be employed, namely, engineering or accounting.

      If you become a lawyer, it is your own damn fault!

      I intend to be the 1st and last person in my family tree to be a lawyer.

      Why???

      Well, the money is zilch.

      And, more importantly,

      I do not know anyone who can struggle and suffer for less, than me.

      After 37 years of practice, I would NEVER have become a lawyer had I know the "Cup that would have been set before me." (CHRIST was reluctant to take up the cup.)

      Take note:

      Truly:

      I have an on-going law practice and could easily transition it to a lawyer son.

      I INTEND TO KILL MY PRACTICE SO NO SON OF MINE WILL BE ABLE TO TAKE IT UP.

      And so be the life of a solo practitioner.

      If you think me heartless, I would love for a child of mine to follow in my footsteps, and gather advantage from what I have so dearly bought.

      My children will NEVER be lawyers.

      "Lawyering" is not for the faint of heart.

      Eagle Scout/Philmont Ranger

      Delete
  28. Yes, Eagle Scout. I looked down on my old college roommate, an accounting major. Yes, they now need an extra year of study to sit for CPA exam. Her firm paid, and she went at night, so it took her 3 years. Right at the time I was taking the bar, she was taking the CPA exam. She wasn't working for a Big 4 (the equivalent of Big Law), but the regional firm she was working for paid not only for her Masters, but also for the exam and a study course. We both passed the first time (me the bar, by friend the CPA exam). We went out for a drinks, I suggested some place cheap, she said yes. We met, she told me she would be closing on a condo in a month. I can only dream of the life she has.

    ReplyDelete
    Replies
    1. Eagle Scout Boomer here…

      No one believes me, I make about the same gross income as them, me being self employed, they working for a large yellow bulldozer equipment manufacturer.

      I DECUCT from my gross income, the same or so of theirs-and generally less- 22,000 for health insurance premiums and unreimbursed medical expense, less, life insurance premiums, less disability insurance premiums, less contributions to pension benefits.

      If I gross $120,000, after $22,000 for health items listed above, less $4,000 for life insurance premiums, less$????? for disability insurance premiums (I have no disability insurance as I cannot afford it), less $21,000 paid in real cash to a retirement fund-cannot afford that each year, what is left. DO THE MATH. For every dollar I deduct from my gross, ADD that to the gross of the yellow equipment manufacturer employee ON TOP OF THEIR WAGES GROSS.

      Year to year I LOSE about $80,000.

      A law degree is a death sentence, with the worst result being a reduction to life.

      Cincinnatus

      Delete
    2. Fellow Eagle Scouts are my friends without reservation.

      Be Prepared. (My religion.)

      Philmont "Bent" Ranger 1971

      Delete
  29. Any word on the October 17th default date?

    ReplyDelete

 
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