September 30, 2011
Poor risk management and fragmented supervision of banks helped lead to the recent financial crisis, which could prompt changes in the financial services industry, a former Federal Reserve member said during a presentation at Indiana State University.
Jon Greenlee, currently managing director of KPMG's financial services regulatory practice in McLean, Va., spoke to nearly 100 students and community members at Hulman Memorial Student Union. His visit, the first "Leader In Action" event of the 2011-12 academic year, was sponsored by the Scott College of Business.
In his presentation, "After the Crisis: The Transformation of Financial Services," Greenlee discussed a number of reasons for the financial crisis in the U.S. as well as possible ways in which the financial services industry will see changes.
"Not all is gloomy in financial services," Greenlee said during his Sept. 22 visit. "But there is change going on."
These changes could include ensuring that banks retain more capital, increasing costs for services and more direct and effective conflict resolution within companies, he told the audience.
Interactions between banks and financial service companies and their customers may also be changed to ensure that activities taking place will not harm people, he said. He cited one such harmful practice as granting credit to people who could not afford it.
Most small, community banks will not be affected by these changes, as they are not as interconnected as the major nationwide banks, he said.
Greenlee then advised students to stay aware of the changes taking place.
"Spend a lot of time reading," he said.
After a question and answer session that followed his main presentation, two students representing Gamma Iota Sigma, ISU's chapter of the national insurance and risk management and actuarial fraternity, presented Greenlee with a plaque in appreciation for his leadership in financial services and his dedication to ISU and the Scott College of Business.
Greenlee has more than 24 years of bank regulatory experience in dealing with issues pertaining to financial services, risk management and development of regulatory policies. He had a full schedule during his time at ISU, including class presentations, a tour of the future Scott College of Business in the former downtown Federal Building, lunch with students and community members, and his main presentation and dinner.
His wife, Sue, also a 1985 graduate of ISU (in computer science,) spoke to female computer science and management information systems students about the future of information technology and how women can impact that future.
The Scott College of Business' Leader In Action program was officially launched in 2007 as part of Financial Services being named an ISU Program of National Distinction.
The Leader In Action series is designed to bring top industry executives and leaders in insurance and financial services to campus each year to share their time and talents with students, faculty and area communities.
"These exchanges build bridges with industry partners and provide timely, cutting-edge education for our students," said Maria Greninger, director of external relations for the Scott College of Business.
Photo: http://isuphoto.smugmug.com/Events/Jon-Greenee-Leader-in-Action/i-QqC2Lnc/0/D/092211greenleeleaderinaction-D.jpg (ISU/Tony Campbell)
Contact: Maria Greninger, director of external relations, Scott College of Business, Indiana State University, 812-237-4357 or Maria.Greninger@indstate.edu
Writer: Mallory Metheny, media relations assistant, Office of Communications and Marketing, Indiana State University, 812-237-3773
Jon Greenlee, managing director of KPMG's financial services regulatory practice, and a former Federal Reserve member, spoke at ISU as part of the Scott College of Business' "Leader in Action" series.