October 1 2007
Program comes on heels of nationÃ¢â‚¬â„¢s largest bank closure in 14 years
TERRE HAUTE - When federal regulators last week took over Alpharetta, Ga.-based NetBank, it marked the largest failure of a savings institution since 1993. The shutdown of the Internet-only operation also marked the largest bank failure in Georgia history.
As part of its mission of financial literacy education and research, Networks Financial Institute at Indiana State University is bringing an expert in regulatory policy to the ISU campus to discuss Ã¢â‚¬Å“Cutting the Cost of Bank Failure.Ã¢â‚¬Â
The savings and loan crisis of the 1980s and '90s cost an estimated $150 billion. Legislation passed in 1991 was intended to reduce the cost of bank failures, but George Kaufman, the John M. Smith professor of finance and economics at Loyola University in Chicago, says the potential costs are still too high. In his presentation for the College of Business at ISU, Kaufman will discuss his ideas for further policy changes so that the cost of bank failures is as low as possible and that the largest institutions will not gamble that regulators will bail them out if they become insolvent.
Kaufman, who is director of the Center for Financial and Policy Studies in the School of Business at Loyola, will speak at 5 p.m. Oct. 8 in the ISU College of Business, 11th floor conference room. A reception will precede his remarks at 4:30 p.m. Both events are free and open to the public. However, seating is limited and reservations are requested by calling (812) 237-2011 or firstname.lastname@example.org.
Contact: John A. Tatom, director of research, Networks Financial Institute at Indiana State University, (317) 536-0281, ect. 712 or email@example.com.
Writer: Dave Taylor, media relations director, Indiana State University, (812) 237-3743 or firstname.lastname@example.org.
George Kaufman, the John M. Smith professor of finance and economics at Loyola University in Chicago, will speak on "Cutting the Cost of Bank Failure" at 5 p.m. Oct. 8 in the ISU College of Business, 11th floor conference room. The presentation is free and open to the public, but reservations are requested at (8120 237-2011 or email@example.com