America’s Universities Need Serious Regulation

If you want real change in large organizations, focus on governance and personal accountability.

By Arthur Levitt

The Wall Street Journal

November 12, 2023


Americans who are rightfully appalled by the pusillanimous response to anti-Semitism on college campuses have been pulling their donations and calling for restrictions on anti-Israel student groups. Maybe those tactics will work. But in my experience, if you want real change in large and unwieldy organizations, you need to focus on fixing governance and assigning personal accountability. You need to regulate.


After the accounting scandals of the dot-com and Enron era, Congress passed laws requiring auditors to tighten their operations, establish clear boundaries between their consulting and audit businesses, and assume far more accountability than they had before.


Directors, too, were informed that they bore a personal interest in preventing fraud. One rule made it clear that if a company passed fraudulent numbers off to investors, the person who signed the filing—usually the chairman—would be personally liable.


Lawmakers have also tightened anti-money-laundering statutes, requiring banks to review their customers closely and to ensure they aren’t unwittingly providing services to organized crime, terror entities, tax evaders or other bad actors. The rules are difficult to enforce and require a lot of work. But they come with real penalties for failure: Bank officers can go to prison if they fail to prevent money laundering, and several have.


Think of the difference this makes. When Russia invaded Ukraine, America’s banks and other multinational corporations quickly had to implement sanctions—including anti-money-laundering rules—on Russia’s government, politicians, financial institutions, oligarchs and others who make up the country’s elite. This happened effectively because people had real skin in the game: their own.


Which brings us back to campus. Clearly, America’s universities are in need of similar encouragement.


Universities have lately seen a raft of scandals related to their fundamental mission of scholarship and teaching. Students are graduating unprepared for basic work and deeply in debt. Prominent scholars are found to be fudging their own research. Admissions officers and other officials are found to be engaging in pay-for-admission schemes. Athletic programs are regularly found breaking rules and laws. Universities have taken charitable gifts from questionable sources such as Jeffrey Epstein and Chinese military and Communist Party fronts.


Add the explosion of anti-Semitism. America’s campuses are the source of some of the vilest Jew-hatred America has seen since 1939, when the German American Bund held a pro-Nazi rally at Madison Square Garden. Not only do some faculty and students call for Israel’s destruction; they celebrated Hamas’s brutal massacre as an act of “resistance.”


If public companies featured such systematic failures, they would be visited by regulators and called before Congress. Universities, by comparison, are lightly regulated. There are accrediting agencies, and the Education Department focuses on enforcement of civil-rights laws. In the case of professional education, some membership organizations set curricular standards.


But these don’t constitute regulation in a comprehensive sense. Universities can pretty much set their own rules, and they answer to no one. They face no meaningful external pressure to tell the truth or honor their promises to students and others. They don’t need to report or punish fraud or corruption. They don’t set consistent standards for contributions or spending.


None of this is acceptable. Not to students and parents. Not to alumni and donors. And not to taxpayers, who subsidize universities to the tune of $1 trillion a year. The public has a clear interest in how these institutions operate and deserve to know how they became hotbeds of anti-Semitism.


Imagine what a difference it would make if universities were subject to the same kind of regulatory oversight the Securities and Exchange Commission provides to public companies. Administrators would have to meet basic standards of truthfulness and governance or face stiff financial penalties and sanctions, including permanent bans from working in higher education. If criminal acts were discovered, the Justice Department would step in.


When I led the SEC, I often spoke about my duty to the investing public. I said every public corporation needs to be trusted, and all should treat their investors with respect. Someone who breaks that trust should pay the price—including with time in prison.


Given what we are seeing on college campuses, it is time to impose the same standard on universities, their managers and their directors and trustees. It may be the only way to save them.




America’s Universities Need Serious Regulation - WSJ

Davidson College Republican and Davidson College Libertarian Presidents: We stand for free speech at Davidson

March 19, 2025
By Gabriel Russ-Nachamie ’27 and Stephen Walker ’26 The Davidsonian March 19, 2025 Davidson’s public commitment to free expression is admirable, but recent anti-speech actions by the College contradict its guarantees to students and set dangerous pro-censorship precedents. This paradox threatens to stifle the open discourse we as a community all grow and benefit from. For context, a 2021 press release announcing Davidson’s commitment to freedom of expression states the College intends “to build a culture where everyone can participate and be heard” and acknowledges that “freedom of expression can’t exist when some people are barred from the conversation” solely on account of allegations that their speech is seen as wrong or offensive. Davidson’s pledge in the free expression statement itself commits the College to upholding protections of student expression for all because “Dissenting voices cannot and should not be censored.” Recent actions against the College Young Americans for Freedom (YAF) chapter and its president, Cynthia Huang ‘25, threaten to undo these efforts in ways harmful to each and every one of us. In a letter published by YAF’s Davidson chapter, the College accused Huang of “Harassment” for publishing political content online and distributing pamphlets that “allegedly includes misinformation” promoting “Islamophobia” and “Transphobia” that made students report feeling “threatened and unsafe on campus.” Davidson offered to “resolve” the matter by forcing Huang to either admit responsibility for the alleged violation and agree to an “Accountability Plan” demanding action to avoid further sanction or a “Code of Responsibility Council Hearing,” which is reserved for actions constituting “serious prohibited conduct in a single incident or a persistent pattern of less severe prohibited conduct,” according to Davidson’s student handbook. The content that triggered this response was political material responding to ideas and policies the YAF chapter disagreed with. It is wrong to classify disagreement as harassment simply because the disagreement “offended” students. The content in question was meant to spark discourse surrounding certain political policies and ideologies. According to Davidson’s own standards, this content should be protected speech. The content that Huang faces potential sanctions for did not explicitly or implicitly promote any action against specific people or groups on account of their identities. For example, the pamphlet from YAF notes the link between Islamic fundamentalist theology and Hamas. However, this is not “Islamophobic” but a historical and scholarly argument about justifications of violence that rely upon religious interpretations. In fact, Hamas is an acronym that stands for the “Islamic Resistance Movement” and the group uses Islamic theology to justify their actions. Discussing the impact of religion on violence, whether it be Christianity, Judaism, or Islam, is protected speech and not bigotry. The club did not in any way target students and the material was freely available for anyone to engage with or ignore. Serious political disagreement on issues always has and will continue to offend individuals who dislike competing opinions. However, a small group of students being “offended” never justifies institutional backlash against political speech. We are not the only individuals or groups concerned about this restriction on speech. The Foundation for Individual Rights and Expression (FIRE), a nonpartisan national organization dedicated to protecting free speech for all Americans, recently sent a letter to President Doug Hicks ‘90. FIRE urged Davidson to drop the charges against the YAF chapter and change its policies to align with the Chicago Principles of free speech, commonly known as the Chicago Statement which Davidson has allegedly committed to upholding. Adjudicative bodies should not base their decisions purely on perceptions motivated by personal feelings and biases. These actions by the college against YAF risk violating Davidson’s commitment to ensuring free speech and robust debate among students. No threats or harassment against students were included in YAF’s content, and anybody who does not like what they have to say is not being forced to engage with their content in any way. The only discernible motivation for going forward with sanctions is that YAF is a political minority that has questioned political orthodoxies in a way that is upsetting to others. The College’s Commitment to Freedom of Expression was made to protect this type of conduct. The Commitment directly states, “Davidson College’s fundamental commitment is to the principle that debate, discussion, and deliberation may not be suppressed because the ideas put forth are thought by some or even most members of the college community to be offensive or unwise.” Sanctioning YAF for political arguments violates our rights as students and has dangerous implications. The aforementioned press release announcing Davidson’s commitment identifies “self-censorship” as a problem for Davidson and a motivator for its creation of the Commitment to Freedom of Expression statement. When students see that the only person who has spoken out against the majority in a political debate is facing sanctions because others did not like the content that student shared, said administrative action sends a message that dissent is unacceptable. This potentially triggers more self-censorship among all those who may disagree with this and countless other political ideas. As the presidents of the Davidson College Republicans and the Davidson College Libertarians, we stand for the free speech rights of all Davidson students. As a leading liberal arts school receiving taxpayer dollars, Davidson has publicly committed itself to upholding free speech rights for students and faculty. We call on the College to uphold its proclaimed principles and reject punishing students and political clubs for speech that some might disagree with or find offensive. We call on the College administration to change the Code of Responsibility to align with the Chicago Statement, as FIRE argued is crucial for Davidson in its letter to President Hicks. Finally, we firmly reject the anti-intellectual, adolescent mindset that has motivated the support for YAF’s censorship. Unwillingness to coexist with peers you may disagree with is unbecoming of students at such a prestigious institution like Davidson. You can’t take away your peers’ rights just because people’s feelings are hurt. Gabriel Russ-Nachamie ‘27 is an economics and mathematics double major from Lincolnton, NC and can be reached for comment at garussnachamie@davidson.edu. Stephen Walker ‘26 is a political science and English double major from Philadelphia, PA and can be reached for comment at stwalker@davidson.edu. https://thedavidsonian.news/1063/perspectives/davidson-college-republican-and-davidson-college-libertarian-presidents-we-stand-for-free-speech-at-david son/

Jeff Bezos Note to the Washington Post

February 26, 2025
"I shared this note with the Washington Post team this morning:"

Former Governor Weighs In on the Future of DEI at Davidson

February 26, 2025
By James (Jim) Martin '57 The Davidsonian February 26, 2025 As a loyal alumnus, I love Davidson College. There are few things here that I don’t love. Perhaps you feel the same, for similar or different reasons. While privileged to teach chemistry here for twelve years, I got into politics as a Mecklenburg County Commissioner. For five decades since retiring from the faculty to become a member of the US Congress, I followed Davidson mostly in passive ways. My annual giving was modest until I was in a position to increase my donation and deliver a significant gift from Duke Energy while on its Board. This and generous friends endowed Professor Malcolm Campbell’s multidisciplinary Genomics Program and a chair in chemistry honored to support Professor Erland Stevens. While Governor of North Carolina, I received an honorary degree and spoke at graduation. All this is a self-aggrandizing way to say I’m part of Davidson College and fully committed to helping it become the best it can be. This was tested when our Trustees decided that the President and the majority of Trustees need no longer be Christian. I joined eleven other former Trustees in a statement objecting to what we believed would undermine Davidson’s tradition and Statement of Purpose. This angered some alumni, especially recent graduates. You might be amused at how many defended the change simply by denouncing us as “old white men.” This trifling trifecta of accursed identity was true, but ignored thoughtful reasoning. This drew me to an even smaller, unofficial group of concerned alumni, Davidsonians for Freedom of Thought and Discourse ( www.dftdunite.org ). Since 2018, its founders had petitioned Davidson College to adopt the Chicago Principles on Freedom of Expression. Pleading from a conservative viewpoint, they got little respect. Even with support from hundreds of alumni representing a wider range of interests, ages and viewpoints, DFTD continued to be disregarded. In 2021, President Carol Quillen heeded a similar appeal from several faculty members, whose interests weren’t aligned with ours. She appointed me to a group of six chaired by Professor Issac Bailey to compose a Davidson vision for academic freedom of expression reflecting Davidson’s commitment to ideals of diversity. The resulting document containing every element of the Chicago Principles was deferred until the arrival of new President Doug Hicks. With his calm inspiration, earnest discussions among faculty won growing acceptance. In early 2023, “Davidson’s Commitment to Freedom of Expression” was affirmed by a nearly unanimous vote. DFTD found ways to support greater diversity of viewpoints on campus. A student chapter of Free Speech Alliance was founded and DFTD was pleased to provide funding for their and others’ invited speakers. This led individual students to entrust us with suspected violations of their academic freedom. Most alarmingly, we heard about several dozen academic courses with syllabi requiring students to confess themselves “oppressors,” repent and atone . . . religious conditions irrelevant to the subject matter. Ironically, DEI is Latin for “gods.” We learned from other students about an astonishing “mandatory” order that all Davidson athletes attend a one-sided, provocative documentary entitled, “I’m not Racist…am I?” Its message? If you are white, you are racist. If you’re non-white, you can’t be racist. Melanin matters. While we don’t object to anyone studying such controversial notions, we protested the coercive way highly partisan objectives were imposed as a condition for participating. After several months with no assurance that our concerns were taken seriously, we reported this to our subscribers. Our purpose was to bring about a remedy, not punish or accuse any individual as was making national headlines at other schools. We figured some may have felt they were doing what was expected of them. One of us mentioned this campus issue in an interview on Fox News. This exploded into far wider circulation than we had foreseen or intended. Faculty and administration were flooded with vile communications from hundreds of anonymous individuals. At the time, this threatened to damage the reputation of Davidson College as well as DFTD, likely among opposing factions. I see no consequent injury against the College today, and DFTD’s standing has become more respected or tolerated even among some who dispute us. We made a point to welcome Dr. Chloe Poston as DEI Vice President at Davidson. She listened to our encouragement to explore ways to reform those abuses. Was it fair, in the cause of including diversity, to blame students for past discriminatory practices for which they bore no personal responsibility? We were pleased to discover, not long after the fall term began, that every course whose syllabus had defamed students as “oppressors” had dropped the insulting indoctrination. To us, this was good news, reflecting a less divisive and more welcoming attitude on campus. We commend those among faculty, administration, and students whose thoughtful contributions led to these corrections. Other reforms may need attention. Do any departments still require DEI allegiance in ways that filter out conservative scholars? Do students or faculty still feel intimidated to self-censor their thoughts and questions? Will Davidson adopt institutional neutrality for ideological controversies? There’s now the question whether Davidson‘s more welcoming, less doctrinaire approach to inclusion of a wider diversity of attributes, cultures and viewpoints will survive the national backlash against DEI. The federal government has declared a campaign to eradicate any trace of it. Among our DFTD membership we’ve learned to respect divergent views among friends, but I can tell you there is division over this. Some are convinced the same old divisive malpractices will simply be continued behind new titles, concealing the enforcement of identity politics. Others trust that Davidson’s new approach can be a positive model for others. Davidson can demonstrate a standard of healthier assurance that every student, without regard to their culture, religion, attitude, politics or appearance, will be genuinely welcomed and encouraged to grow intellectually, socially and spiritually. Large universities with massive DEI staffing must choose to fold or fight. If Davidson can restore diversity’s original ideals without the partisan excesses, other elite colleges might choose to defend this more sensible approach. The Davidsonian 2/26/25 by Davidsonian - Issuu
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