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Tuesday, June 24, 2025

Will Harvard Continue to Lead the Charge? - Part 22

From the Harvard Crimson: Rep. Elise M. Stefanik ’06 (R-N.Y.) urged the United States Securities and Exchange Commission on Tuesday to investigate Harvard’s bond sales, accusing her alma mater of withholding key financial information amid tensions with the federal government. In a letter addressed to SEC Chairman Paul S. Atkins, Stefanik alleged that Harvard failed to disclose its decision to reject federal demands before issuing $750 million in taxable bonds on April 9. The University made that decision public on April 14 and formally disclosed it to investors in a supplemental filing the following day — nearly a week after the offering.

It is not clear that Harvard had already made the decision to reject the demands before it issued the bonds. “There is reason to believe Harvard withheld material information from bondholders,” wrote Stefanik, who chairs the House’s Republican caucus. “If Harvard had indeed made its decision by April 9 and did not disclose it, this would warrant serious scrutiny.”

Stefanik claimed that the omission may have violated federal securities laws, arguing that investors were not made aware of the full financial and reputational risks posed by Harvard’s growing conflict with the Trump administration. In essence, she argued, Harvard should have told bondholders to expect the Trump administration to punish its bottom line for refusing to comply with federal demands.

A University spokesperson forcefully rejected Stefanik’s allegations, writing that Harvard could not have foreseen the administration’s sweeping demands nor its retaliation, and that it communicated with bondholders as soon as possible...

Full story at https://www.thecrimson.com/article/2025/6/18/stefanik-sec-bond-disclosures/.

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