Back in October, a YouTube video got a lot of media coverage. It showed DKE members (the Bushes were once members) saying very, very bad things. There was much outrage.
Over six months later, Yale has finally figured out a response. The fraternity chapter has been suspended and may not conduct any activities on campus including recruiting for five years. Apparently particular individuals were punished as well.
"Yale's disciplinary actions Tuesday come several weeks after officials confirmed the university was under federal investigation for a possible Title IX violation. The complaint that prompted the investigation alleged that the school's policies permitted a "sexually hostile environment" to exist on campus."
I think what we are looking at here is really solid proof that elite institutions do not, actually give a flying fuck about their reputation. They are completely okay with the idea that the population at large looks at them and thinks, I Will Never, Ever, Ever Let My Child Near That Cesspool if that's what's going on over there. They do, however, care about action by legal authorities. If there are, indeed, any starry-eyes anarcho-capitalist idealists out there (doubtful) this should be a clue that reputation is not strong enough an enforcement mechanism.