The regulatory power to destroy

Take the case of for-profit Decker College, which a federal bankruptcy judge has concluded was driven into bankruptcy seven years ago by its accreditor’s falsehoods that followed unusual regulatory intervention. A fact-finding report by Judge Thomas Fulton of the Western District of Kentucky last week vindicates the college, but it comes too late to save the company and many of its creditors, who include students and workers. …

The Decker case smacks of regulatory abuse and is a reminder of how easily businesses can be broken by bureaucratic power. Perhaps Congress should invite Mr. LoBosco and his supervisors to testify under oath. Who’s watching the watchmen?