* Krannert School of Management

October 8, 2008

Krannert professors address causes, effects of U.S. financial crisis

WEST LAFAYETTE, Ind. - Members of the public interested in learning more about the American financial crisis can now find answers through Purdue's Krannert School of Management.

Five Krannert faculty members held a panel discussion on Oct. 3 about the causes and implications of the current U.S. financial crisis. Later that day, the House of Representatives passed a $700 billion bailout bill aimed at calming the turmoil on Wall Street.

The faculty answered questions from a student audience and also discussed various aspects of the crisis. Video clips from the forum can be viewed online at

"Many people out there have questions and concerns about what the Wall Street troubles mean for them and for our country," said Richard A. Cosier, Krannert School dean and Leeds Professor of Management. "Viewing these clips will allow the public and our students to learn about the issues on their own time from trusted experts who give both context and perspective to the problems."

Some of the clips available include:

* David Denis, professor of finance and the Burton Morgan Chair of Private Enterprise, discussing the role of several factors that have contributed to the crisis, including subprime mortgages.

* Mark Bagnoli, professor of accounting and Olson Chair of Management, talking about the accounting methodology of “mark-to-market” and its role in the crisis.

* Kevin Mumford, assistant professor of economics, covering the role of the housing market in the crisis.

* Kanda Naknoi, assistant professor of economics, speaking about the response of the Bank of Japan during an economic crisis in that country.

* Jerry Lynch, professor of economics, discussing the ripples of the current crisis on Main Street.

Visitors to the site can watch clips organized by professor and topic or by audience question.

Writer: Tanya Brown, (765) 494-2079,

Source: Tim Newton, Krannert School director of external relations and communications, (765) 496-7271,

Purdue News Service: (765) 494-2096;

To the News Service home page