The Financial Crisis Explained By the Experts

The Finance Department, the Center for Institutional Investment Management and the Economics department recently sponsored a Forum on The 2008 Financial Crisis: Causes, Consequences and Policy Responses.

Associate Professor Christophe Faugere, Finance Department Chair, said, “We are in a unique historical time period, faced with the biggest economic challenge since the 1930’s. Our faculty and alumni experts felt compelled to jump in and help educate the public about what is really going on.”

Faugere noted that attendance was much higher than expected: over 350 students, faculty, business people and local residents. He was pleased that the school was able to get participation from top business executives in the Capital District, including School of Business alumni. The group of experts covered topics from effect of the bailout on the New York State economy to comparisons of the current crisis and the 1929 market crash. At the forum, Faugere provided insight on the causes of the 2008 crisis. His colleague,Professor Hany Shawky discussed how the crisis affects credit and the impact of credit default swaps.

School of Business Advisory Council Chair Timothy Bruculere , Vice President of Loan Participation for Members United Corporation Federal Credit Union, was a featured speaker. Bruculere spoke on the impact of the crisis on small to average size banks, noting that though the bailout does not help them, many of the smaller banks are in good shape. SBAC members Peter Cosgrove’98, Sr. Vice President, First Niagara Bank and Katherine Doran, Partner, Teal Becker Chiaramonte CPAs, served as panelists, providing perspectives on the bailout plan.

Fellow panelist, alumnus Kenneth Leonard ‘82, a financial advisor for Wachovia Securities, indicated the need to return to the Glass-Steagall Act of 1933, which was repealed less than ten years ago.

The group plans a follow up event in four to six months and is requesting corporate sponsorship.