Ending Government Bailouts as We Know Them 313

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Aboutthe Authors

Nicholas F. Brady, ormer U.S. Treasury secretary, is cur-

rently chairman o Darby Overseas Investments Ltd. and a

partner in Holowesko Partners Ltd. He was senior partnerat the Wall Street investment banking frm Dillon, Read

& Co. Inc. or nearly two decades and also served as chair-

man o Purolator Inc., a Fortune 500 company. At the Trea-

sury, Brady designed and implemented a successul strategy

(which came to be known as the Brady Plan) to resolve the

Latin American debt crisis. He has served on the boards o a

number o companies and is currently chairman o Franklin

Templeton Investment Funds and director o Hess Corpo-

ration and Weatherord International Ltd. He received his

BA rom Yale University (1952) and his MBA rom Har-

vard University (1954).

Darrell Dufe is the Dean Witter Distinguished Proessorin Finance at the Graduate School o Business, Stanord

University, where he has been a member o the aculty since

receiving his PhD at Stanord in 1984. His recent research

ocuses on asset pricing, credit risk, capital markets, and over-

the-counter markets. Among other positions, he is president

o the American Finance Association, a ellow and member

o the Council o the Econometric Society, a research asso-ciate o the National Bureau o Economic Research, and a

ellow o the American Academy o Arts and Sciences. He

Copyright 2010 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved.


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314 About the Authors

is currently on the editorial boards oEconometrica and the

Journal of Financial Economics, among other journals.

Joseph A. Grundest is the W. A. Franke Proessor o Law

and Business at the Stanord Law School and a nationally

prominent expert on capital markets, corporate governance,

and securities litigation. He ounded the award-winning Stan-

ord Securities Class Action Clearinghouse, which provides

detailed, online inormation about the prosecution, deense,and settlement o ederal class action securities raud litiga-

tion. He also launched Stanord Law Schools executive edu-

cation programs and continues to codirect Directors College,

the nations leading venue or the continuing proessional

education o directors o publicly traded corporations. He

also codirects the Rock Center or Corporate Governance,as well as the Stanord Program in Law, Economics, and Busi-

ness. Beore joining the Stanord Law School aculty in 1990,

he was a commissioner o the Securities and Exchange Com-

mission and served on the sta o the Presidents Council o

Economic Advisers as counsel and senior economist or legal

and regulatory matters.

Richard J. Herring is the Jacob Sara Proessor o Interna-

tional Banking and a proessor o fnance at the Wharton

School, University o Pennsylvania, and ounding director

o the Wharton Financial Institutions Center. From 2000

to 2006, he served as the director o the Lauder Institute

o International Management Studies; rom 1995 to 2000,he served as vice dean and director o Whartons under-

graduate division. During 2006, he was a Proessorial Fel-

low at the Reserve Bank o New Zealand and Victoria



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About the Authors 315

University; during 2009, he was the Metzler Bank Fellow

at Johann Goethe University in Frankurt. He is cochair othe Shadow Financial Regulatory Committee and execu-

tive director o the Financial Economists Roundtable, the

Advisory Board o the European Banking Report in Rome,

and the Institute or Financial Studies in Frankurt. He

previously served as cochair o the Multinational Banking

seminar and was a ellow o the World Economic Forum in

Davos and a member o the Group o 30 task orce on the

reinsurance industry. He received his undergraduate degree

rom Oberlin College in 1968 and his PhD rom Princeton

University in 1973.

Thomas M. Hoenig is president and chie executive of-

cer o the Federal Reserve Bank o Kansas City. He assumedthe role o president on October 1, 1991. He is the longest

serving o the twelve current regional Federal Reserve Bank

presidents and is also the longest-tenured member o the

Systems Federal Open Market Committee. He joined the

bank in 1973 and was its senior ofcer in banking supervi-

sion during one o the most tumultuous periods in the his-

tory o the regions fnancial institutions, the banking crisiso the 1980s. At that time, he was involved with nearly 350

banks that either ailed or received assistance. During the

recent fnancial crisis, he has been especially vocal about

the regulation o the fnancial industry, the need or address-

ing so-called too big to ail institutions, and the role o

monetary policy. He speaks oten on banking and monetarypolicy issues as well as on the structure, history, and role o

the Federal Reserve System. He received his doctorate in

economics rom Iowa State University.



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Thomas H. Jackson, Distinguished University Proessor at

the University o Rochester, served as president o the univer-sity rom 1994 to 2005. Beore he became Rochesters ninth

president, Jackson was vice president and provost o the Uni-

versity o Virginia, which he frst joined in 1988 as dean o

Virginias School o Law. He had been proessor o law at Har-

vard rom 1986 to 1988 and served on the Stanord Univer-

sity aculty rom 1977 to 1986. A 1972 graduate o Williams

College, Jackson earned his law degree rom Yale in 1975. He

frst clerked or U.S. District Court judge Marvin E. Frankel

in New York in 197576 and then or Supreme Court justice

(later chie justice) William H. Rehnquist in 197677. The

author o bankruptcy and commercial law texts used in law

schools across the country, he served as Special Master or

the U.S. Supreme Court in a dispute involving every statein the country over the disposition o unclaimed dividends

held by brokerage houses.

William F. Kroener III is counsel at Sullivan & Cromwell

LLP. He served as general counsel o the Federal Deposit

Insurance Corporation rom 1995 to 2006. His law practice

ocuses on the supervision and regulation o banks and otherregulated fnancial institutions and their advisers. He cur-

rently serves as cochair o the American Bar Association

Task Force on Financial Markets Regulatory Reorm, vice

chair o the Banking Law Committee o the American Bar

Association Business Law Section, a member o the Execu-

tive Council o the Banking Law Committee o the FederalBar Association, an advisory member o the Financial Insti-

tutions Committee o the Business Law Section o the State

Bar o Caliornia, and a member o the Regulatory Appeals



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Committee o the Dubai Financial Services Authority. He

speaks and writes regularly on fnancial regulatory topicsand has taught as an adjunct proessor at Stanord, George

Washington, and American University law schools. He has

served on the Stanord Law School Board o Visitors and as

national chair o the Stanord Law Fund. He is a graduate o

Yale and Stanord law and business schools.

Charles S. Morris is vice president and economist in theSupervision and Risk Management Divisions Banking

Research Department at the Federal Reserve Bank o Kan-

sas City. He conducts research on banking and fnancial

markets with an emphasis on regulatory and policy issues.

He also supports the banks senior management by prepar-

ing analyses, briefngs, and recommendations on regulatoryand policy issues. He has conducted research in a variety

o areas, including banking, fnancial instruments, general

fnance, rural fnance, and macroeconomics. He joined the

bank as an economist in the Economic Research Depart-

ment in 1983. He was promoted to assistant vice president

and economist in 1992 and to vice president and economist

in 1997. In 1999, he let the research area and led severalbusiness areas o the bank beore returning to a research role

in 2008 as head o the Banking Research Department. He

holds a BA, an MA, and a PhD in economics rom the Uni-

versity o Caliornia, Los Angeles.

Kenneth E. Scott, the Parsons Proessor Emeritus o Lawand Business at Stanord Law School and a Hoover Institu-

tion senior research ellow, is a leading scholar in the felds o

corporate fnance reorm and corporate governance who has



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written extensively on ederal banking regulation. His current

research concentrates on legislative and policy developmentsrelated to the current fnancial crisis, comparative corpo-

rate governance, and fnancial regulation. He has extensive

consulting experience, including work or the World Bank,

the Federal Deposit Insurance Corporation, the Resolution

Trust Corporation, and, most recently, the National Associa-

tion o Securities Dealers. He is also a member o the Shadow

Financial Regulatory Committee, the Financial Economists

Roundtable, and the State Bar o Caliornias Financial Insti-

tutions Committee. Beore joining the Stanord Law School

aculty in 1968, he served as general counsel to the Federal

Home Loan Bank Board and as chie deputy savings and loan

commissioner o Caliornia and worked in private practice in

New York with Sullivan & Cromwell.

George P. Shultz is the Thomas W. and Susan B. Ford Dis-

tinguished Fellow at the Hoover Institution. Among many

other senior government and private sector roles, he served as

secretary o labor in 1969 and 1970, as director o the Ofce

o Management and Budget rom 1970 to 1972, and as secre-

tary o the Treasury rom 1972 to 1974. He was sworn in onJuly 16, 1982, as the sixtieth U.S. secretary o state and served

until January 20, 1989. In January 1989, he was awarded the

Medal o Freedom, the nations highest civilian honor. Shultz

rejoined Stanord University in 1989 as the Jack Steel Parker

Proessor o International Economics at the Graduate School

o Business and as a distinguished ellow at the Hoover Insti-tution. He is the Advisory Council chair o the Precourt

Institute or Energy Efciency at Stanord and chair o the



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Energy Initiative External Advisory Board at the Massachu-

setts Institute o Technology. He is the chairman o GovernorSchwarzeneggers Council o Economic Advisers and a distin-

guished ellow o the American Economic Association.

Kenneth Spong is a Senior Economist in the Banking

Research Department at the Federal Reserve Bank o Kansas

City. He has been with the Federal Reserve since 1973 and

is engaged in research on a variety o topics related to theregulation, supervision, and perormance o banks and other

fnancial institutions. This research includes corporate gover-

nance and the ownership and management structure o banks,

large banks and too-big-to-ail concerns, small business lend-

ing, interstate banking, and home fnancing and homeown-

ership issues among low-income households. In addition, hehas written a book on bank regulation, Banking Regulation: Its

Purposes, Implementation, and Effects, which is now in its fth

edition. He has an MA in economics rom the University o

Chicago and a BA in mathematics and economics rom the

University o Kansas.

Johannes Stroebel is a PhD student in economics at Stan-ord University, where he is the Dr. Carl M. and Carolyn C.

Franklin ellow. He is a member o the Working Group on

National and Global Economic Markets at the Hoover Insti-

tution. His research ocuses on the U.S. housing market and

on analyzing government responses to the recent fnancial

crisis. His recent paper Foreclosure and Bankruptcy: PolicyConclusions rom the Current Crisis with Theresa Kuchler

analyzes the interaction between household decisions to



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declare Chapter 7 bankruptcy and to enter into oreclosure

using individual state data in the United States. He holds aBA in philosophy, politics, and economics rom Merton Col-

lege, Oxord.

Kimberly Anne Summe is the general counsel o Partner

Fund Management, a San Franciscobased investment

adviser. She is also an adjunct proessor at the Stanord Law

School. Summe was previously a managing director in primebrokerage at Lehman Brothers; prior to that she served as

general counsel o the International Swaps and Derivatives

Association. In the latter capacity, Summe was responsible

or developing industry standard contracts or the over-the-

counter derivatives industry, as well as addressing regulatory

issues in dozens o jurisdictions. She was a banking associ-ate at Pillsbury Winthrop and at Sullivan & Cromwell and

has published more than a dozen articles on various bank-

ing and securities law topics. Summes interest in the capital

markets has led her to establish a nonproft organization,

Paladin Connect, that oers the pro bono services o lead-

ing global law frms to microfnance institutions. Summe

received her law degrees rom the University o Chicagoand Cambridge University and a postgraduate degree rom

the London School o Economics.

John B. Taylor is the Bowen H. and Janice Arthur McCoy

Senior Fellow at the Hoover Institution and the Mary and

Robert Raymond Proessor o Economics at Stanord Uni-versity. Among other roles in public service, he served as a

member o the Presidents Council o Economic Advisers



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rom 1989 to 1991 and as undersecretary o the Treasury or

international aairs rom 2001 to 2005. He is currently amember o the Caliornia Governors Council o Economic

Advisers. His new book Getting Off Track: How Government

Actions and Interventions Caused, Prolonged, and Worsened the

Financial Crisis is an empirical analysis o the recent fnancial

crisis. He also recently coedited The Road Ahead for the Fed

in which twelve leading experts, himsel included, examine

and debate proposals or fnancial reorm and exit strategies

rom the fnancial crisis. Beore joining the Stanord aculty

in 1984, Taylor held positions as a proessor o economics at

Princeton University and Columbia University. He received

a BS in economics summa cum laude rom Princeton and a

PhD in economics rom Stanord University in 1973.

Paul Volcker worked in the United States ederal govern-

ment or almost thirty years and served two terms as chair-

man o the Board o Governors o the Federal Reserve

System rom 1979 to 1987. He divided the earlier stages

o his career between the Federal Reserve Bank o New

York, the Treasury Department, and the Chase Manhattan

Bank. He retired as chairman o Wolensohn & Co. when itmerged with Bankers Trust. From 1996 to1999, he headed a

committee that determined existing dormant accounts and

other assets in Swiss banks o victims o Nazi persecution.

From 2000 to 2005, he served as chairman o the Board o

Trustees o the International Accounting Standards Com-

mittee and headed a private Commission on the Public Ser-vice in 2003. He chaired the Independent Inquiry into the

United Nations Oil-or-Food Program in 2004 and a panel o



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experts to review the operations o the Department o Insti-

tutional Integrity at the World Bank in 2005. In November2008, President-elect Obama chose him to head the Presi-

dents Economic Recovery Advisory Board. Educated at

Princeton, Harvard, and the London School o Economics,

he is a proessor emeritus o international economic policy

at Princeton University.


Ending Government Bailouts as We Know Them 313

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