Hendrickson Forum 2014 Five years after the start of the Great Recession, much of the financial sector appears focused on propping up the past failed systems. Homeowners, businesses and small banks struggle to recover while “too big to fail” organizations push for policies that retain their advantage. New developments to consider include changing investment management in the U.S. and Europe as well as the economies of developing countries. At the 2014 Hendrickson Institute Forum, Bair discussed: Turning from short-term gratification to long-term economic stability Producing real value to generate meaningful economic gains Looking forward to global challenges and other 21st century issues The Forum can be viewed on your local Minnesota Channel and online. About Sheila Bair Bair is former head of the FDIC, current chair of the Systemic Risk Council and author of Bull by the Horns: Fighting to Save Main Street from Wall Street and Wall Street from Itself. + More Sheila C. Bair served as the 19th Chairman of the Federal Deposit Insurance Corporation for a 5-year term, June 2006-June 2011. As FDIC Chair, Bair presided over a tumultuous period in the nation’s financial sector, working to bolster public confidence and system stability. Determined not to turn to taxpayer borrowing during the crisis, the FDIC managed its losses and liquidity needs entirely through its traditional industry-funded resources. In response to the financial crisis, she developed innovative and stabilizing programs that provided temporary liquidity guarantees to unfreeze credit markets and increased deposit insurance limits. In 2007, she was a singular – and prescient – advocate for systematic loan modifications to stem the coming tidal wave of foreclosures. Bair also led FDIC resolution strategies to sell failing banks to healthier institutions while providing credit support of future losses from failed banks’ troubled loans. That strategy saved the Deposit Insurance Fund $40 billion over losses it would have incurred if the FDIC had liquidated those banks. Under Bair’s leadership, the FDIC’s powers were significantly expanded by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The law extends the FDIC’s resolution process to large, systemically important financial institutions, effectively attacking the doctrine of too-big-to-fail. Bair has been a leading domestic and international advocate for common-sense capital and leverage ratios, including backing a key provision in Dodd-Frank that requires large financial entities to have capital cushions at least as strong as those that apply to U.S. community banks. As a member of the Basel Committee on Banking Supervision, in 2006 she called for higher bank capital standards, including an international leverage ratio to constrain growing levels of leverage among the world’s major financial institutions. Financial experts now widely attribute excess leverage as a key driver of the 2008 financial crisis. In 2010, the Basel Committee finally adopted an international leverage ratio. She continues her work on financial policy issues as a Senior Advisor to the Pew Charitable Trusts. Bair also chairs the Systemic Risk Council (SRC) a public interest group of prominent former government officials and leading financial experts which monitors implementation of financial reforms. She is a founding board member of the Volcker Alliance, a non-profit organization established by former Federal Reserve Board Chairman Paul Volcker to promote more effective government. She also serves on the prestigious International Advisory Council to the China Bank Regulatory Commission. During her tenure as FDIC chair, in 2008 and 2009, Forbes magazine named Bair as the second-most-powerful woman in the world, after Germany’s Chancellor Angela Merkel. Also in 2008, Bair topped The Wall Street Journal’s annual “The 50 Women to Watch” list. In 2009 she was named one of Time Magazine’s “Time 100″ most influential people; awarded the John F. Kennedy Profile in Courage Award; and received the Hubert H. Humphrey Civil Rights Award. In 2010, Bair was featured on the cover of TIME Magazine with Mary Schapiro and Elizabeth Warren as “The New Sheriffs of Wall Street.” Also in 2010, she received the Better Business Bureau’s Presidents’ Award. In December of 2011, subsequent to leaving office, Bair was named by the Washington Post and Harvard University as one of seven of America’s Top Leaders. Bair writes a regular column for Fortune Magazine on financial policy matters. She has written a New York Times best seller about her tenure at the FDIC, Bull By the Horns: Fighting to Save Main Street from Wall Street and Wall Street from Itself. Before joining the FDIC in 2006, Bair was the Dean’s Professor of Financial Regulatory Policy for the Isenberg School of Management at the University of Massachusetts-Amherst. Other career experience includes serving as Assistant Secretary for Financial Institutions at the U.S. Department of the Treasury, Senior Vice President for Government Relations of the New York Stock Exchange, a Commissioner of the Commodity Futures Trading Commission, and Research Director, Deputy Counsel and Counsel to Senate Majority Leader Robert Dole. Articles Washinton Post: Sheila Bair’s graph of the year: For many Americans, there’s been no recovery at all Wall Street Journal: U.S. Banking System Still Fragile CNN Money: Is Blackrock too big to fail? CNN Money: Banks are missing out on Payday loans CNN Video: Former bank regulator Sheila Bair warns against debt ceiling ‘nuclear bomb’ Medal for Ethical Leadership The 2014 Hendrickson Medal for Ethical Leadership will be awarded to Chris Policinski, President and Chief Executive Officer of Land O’ Lakes, Inc. Pre-forum Seminar Join us for a seminar on risk management strategies prior to the Hendrickson Forum: Managing Risk in an Interconnected World. Sponsors About the Hendrickson Institute In an age when scandals lead us to question our leaders' integrity, it is important to recognize people we can count on for ethical leadership in every profession. The Hendrickson Institute promotes ethical leadership through special events and corporate training for business leaders as well as the Tomorrow's Leaders regional high school and university scholarship program. The Hendrickson Institute is located at the Saint Mary's University Twin Cities campus, 2500 Park Avenue, Minneapolis. For additional information, call 612-728-5100.