L. William Seidman
Encyclopedia
Lewis William "Bill" Seidman (April 29, 1921 - May 13, 2009) was an American economist
, financial
commentator, and former head of the U.S. Federal Deposit Insurance Corporation
, best known for his role in helping work to correct the Savings and Loan Crisis
in the American financial sector from 1988-1991 as head of the related entity, the Resolution Trust Corporation
. He also worked as an economic adviser during three separate Administrations of United States Presidents - that of Gerald Ford
, that of Ronald Reagan
, and that of George H.W. Bush.
on April 29th, 1921. He married a onetime University of Michigan
beauty queen
named Sarah Berry Seidman; they later had six children. Seidman received his undergraduate education at Dartmouth College
, his law degree from Harvard University
, and his Master's Degree In Business Administration from the University of Michigan
's Ross School of Business
. He served in the United States Navy
as a officer on a destroyer
in the Pacific theater during World War II
and won a Bronze Star.
From 1950 to 1974, Seidman worked in the accounting firm of Seidman & Seidman, which his father and uncles had founded, and served as its managing partner from 1968 to 1974. The firm later merged with another accounting entity, BDO USA, to become BDO Seidman, a nationally active accounting firm. By 1960, Seidman was a prominent business leader in Grand Rapids, and was one of the principal founders of Grand Valley State University
, helping galvanize local support in the community
for the establishment of a public four-year university in West Michigan.
and Seidman were old friends who had known each other well growing up in Grand Rapids together. After Richard Nixon
's Administration was toppled by the Watergate scandal
in 1974 and Nixon chose to resign from the Presidency, Ford became President during a time of economic recession
in America, and tapped Seidman for an economic advisory post to work on pressing economic problems (such as the choice of whether or not to bail out New York City
from its pending bankruptcy
- Ford later chose against doing this). Seidman served in this capacity until 1976, then returned to the private sector
.
In 1978, Seidman also founded The Washington Campus
, an executive education organization which began as a consortium of U.S. business schools dedicated to educating business leaders on the public policy process.
Later, he was tapped again by President Ronald Reagan
for a similar position from 1982-1984. He served as Dean of the College of Business at Arizona State University from 1982 to 1985. In 1985, he became the chairman of the Federal Deposit Insurance Corporation
and served until 1991, working extensively during the American savings and loan crisis
to restore solvency to the failing savings and loan sector of American banking. He was the first chairman of the related agency, the Resolution Trust Corporation
, which was created specifically to address issues arising from the savings and loan crisis, from 1989 until his retirement from active government in 1991.
network, as well as an occasional speaker at various financial conferences worldwide. In 2005, he debated former Vice-President Al Gore
on economic matters at The Asian Banker Summit in Singapore March 15–17, 2005. He spoke at four events in Asia from 2005-2007. He was, by the time of his death, a sought-after commentator and financial speaker on financial affairs worldwide.
In the last year of his life, Seidman was critical of rescuing the banks' managements and their shareholders during the Troubled Asset Relief Program, comparing the bailout with action he and his team at the Resolution Trust Corporation
took during the S&L crisis of the 1980s: "What we did, we took over the bank, nationalized it, fired the management, took out the bad assets and put a good bank back in the system."
Seidman died of complications
from a sudden attack of pneumonia
after an intercontinental airline
flight in Albuquerque, New Mexico
at the age of 88. He was interred
at his ranch in Wagon Mound, New Mexico
.
named a research institute in his honor. The Seidman College of Business at Grand Valley State University
also bears his name.
Productivity: the American Advantage: How 50 U.S. Companies are Regaining the Competitive Edge by L. William Seidman and Steven L. Skancke
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
, financial
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
commentator, and former head of the U.S. Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
, best known for his role in helping work to correct the Savings and Loan Crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...
in the American financial sector from 1988-1991 as head of the related entity, the Resolution Trust Corporation
Resolution Trust Corporation
The Resolution Trust Corporation was a United States Government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations declared insolvent by...
. He also worked as an economic adviser during three separate Administrations of United States Presidents - that of Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
, that of Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
, and that of George H.W. Bush.
Early Life
Lewis William was born in Grand Rapids, MichiganGrand Rapids, Michigan
Grand Rapids is a city in the U.S. state of Michigan. The city is located on the Grand River about 40 miles east of Lake Michigan. As of the 2010 census, the city population was 188,040. In 2010, the Grand Rapids metropolitan area had a population of 774,160 and a combined statistical area, Grand...
on April 29th, 1921. He married a onetime University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
beauty queen
Beauty Queen
"Beauty Queen" is the second song from Roxy Music's second album, For Your Pleasure. The lyrics refer to Ferry's girlfriend, Valerie Leon, one-time UK beauty queen, B-movie actress and model working in the Newcastle area, circa 1973.-Musicians:...
named Sarah Berry Seidman; they later had six children. Seidman received his undergraduate education at Dartmouth College
Dartmouth College
Dartmouth College is a private, Ivy League university in Hanover, New Hampshire, United States. The institution comprises a liberal arts college, Dartmouth Medical School, Thayer School of Engineering, and the Tuck School of Business, as well as 19 graduate programs in the arts and sciences...
, his law degree from Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
, and his Master's Degree In Business Administration from the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
's Ross School of Business
Ross School of Business
The Stephen M. Ross School of Business is the business school of the University of Michigan. Numerous publications have ranked the Ross School of Business' Bachelor of Business Administration , Master of Business Administration and Executive Education programs among the top in the country and the...
. He served in the United States Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
as a officer on a destroyer
Destroyer
In naval terminology, a destroyer is a fast and maneuverable yet long-endurance warship intended to escort larger vessels in a fleet, convoy or battle group and defend them against smaller, powerful, short-range attackers. Destroyers, originally called torpedo-boat destroyers in 1892, evolved from...
in the Pacific theater during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
and won a Bronze Star.
From 1950 to 1974, Seidman worked in the accounting firm of Seidman & Seidman, which his father and uncles had founded, and served as its managing partner from 1968 to 1974. The firm later merged with another accounting entity, BDO USA, to become BDO Seidman, a nationally active accounting firm. By 1960, Seidman was a prominent business leader in Grand Rapids, and was one of the principal founders of Grand Valley State University
Grand Valley State University
Grand Valley State University is a public liberal arts university located in Allendale, Michigan, United States. The university was established in 1960, and its main campus is situated on approximately west of Grand Rapids...
, helping galvanize local support in the community
Community
The term community has two distinct meanings:*a group of interacting people, possibly living in close proximity, and often refers to a group that shares some common values, and is attributed with social cohesion within a shared geographical location, generally in social units larger than a household...
for the establishment of a public four-year university in West Michigan.
Work in United States Government
Former U.S. President Gerald FordGerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
and Seidman were old friends who had known each other well growing up in Grand Rapids together. After Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
's Administration was toppled by the Watergate scandal
Watergate scandal
The Watergate scandal was a political scandal during the 1970s in the United States resulting from the break-in of the Democratic National Committee headquarters at the Watergate office complex in Washington, D.C., and the Nixon administration's attempted cover-up of its involvement...
in 1974 and Nixon chose to resign from the Presidency, Ford became President during a time of economic recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
in America, and tapped Seidman for an economic advisory post to work on pressing economic problems (such as the choice of whether or not to bail out New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
from its pending bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
- Ford later chose against doing this). Seidman served in this capacity until 1976, then returned to the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
.
In 1978, Seidman also founded The Washington Campus
The Washington Campus
The Washington Campus is a university consortium located in Washington, D.C., U.S. The Consortium was founded in 1978 by L. William Seidman, former economic advisor to President Gerald Ford, fourteenth chairman of the Federal Deposit Insurance Corporation, and first chairman of the Resolution...
, an executive education organization which began as a consortium of U.S. business schools dedicated to educating business leaders on the public policy process.
Later, he was tapped again by President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
for a similar position from 1982-1984. He served as Dean of the College of Business at Arizona State University from 1982 to 1985. In 1985, he became the chairman of the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
and served until 1991, working extensively during the American savings and loan crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...
to restore solvency to the failing savings and loan sector of American banking. He was the first chairman of the related agency, the Resolution Trust Corporation
Resolution Trust Corporation
The Resolution Trust Corporation was a United States Government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations declared insolvent by...
, which was created specifically to address issues arising from the savings and loan crisis, from 1989 until his retirement from active government in 1991.
Later Life
He worked as a chief financial commentator for the CNBCCNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
network, as well as an occasional speaker at various financial conferences worldwide. In 2005, he debated former Vice-President Al Gore
Al Gore
Albert Arnold "Al" Gore, Jr. served as the 45th Vice President of the United States , under President Bill Clinton. He was the Democratic Party's nominee for President in the 2000 U.S. presidential election....
on economic matters at The Asian Banker Summit in Singapore March 15–17, 2005. He spoke at four events in Asia from 2005-2007. He was, by the time of his death, a sought-after commentator and financial speaker on financial affairs worldwide.
In the last year of his life, Seidman was critical of rescuing the banks' managements and their shareholders during the Troubled Asset Relief Program, comparing the bailout with action he and his team at the Resolution Trust Corporation
Resolution Trust Corporation
The Resolution Trust Corporation was a United States Government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations declared insolvent by...
took during the S&L crisis of the 1980s: "What we did, we took over the bank, nationalized it, fired the management, took out the bad assets and put a good bank back in the system."
Seidman died of complications
Complication (medicine)
Complication, in medicine, is an unfavorable evolution of a disease, a health condition or a medical treatment. The disease can become worse in its severity or show a higher number of signs, symptoms or new pathological changes, become widespread throughout the body or affect other organ systems. A...
from a sudden attack of pneumonia
Pneumonia
Pneumonia is an inflammatory condition of the lung—especially affecting the microscopic air sacs —associated with fever, chest symptoms, and a lack of air space on a chest X-ray. Pneumonia is typically caused by an infection but there are a number of other causes...
after an intercontinental airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
flight in Albuquerque, New Mexico
Albuquerque, New Mexico
Albuquerque is the largest city in the state of New Mexico, United States. It is the county seat of Bernalillo County and is situated in the central part of the state, straddling the Rio Grande. The city population was 545,852 as of the 2010 Census and ranks as the 32nd-largest city in the U.S. As...
at the age of 88. He was interred
Burial
Burial is the act of placing a person or object into the ground. This is accomplished by excavating a pit or trench, placing an object in it, and covering it over.-History:...
at his ranch in Wagon Mound, New Mexico
Wagon Mound, New Mexico
Wagon Mound is a village in Mora County, New Mexico, United States. It is named after and located at the foot of a butte called Wagon Mound, which was a landmark for covered wagon trains and traders going up and down the Santa Fe Trail and is now Wagon Mound National Historic Landmark. The shape...
.
Honors
The FDIC office complex in Arlington, VA is named for Seidman. Arizona State UniversityArizona State University
Arizona State University is a public research university located in the Phoenix Metropolitan Area of the State of Arizona...
named a research institute in his honor. The Seidman College of Business at Grand Valley State University
Grand Valley State University
Grand Valley State University is a public liberal arts university located in Allendale, Michigan, United States. The university was established in 1960, and its main campus is situated on approximately west of Grand Rapids...
also bears his name.
Books
Full Faith and Credit: The Great S & L Debacle and Other Washington Sagas by L. William SeidmanProductivity: the American Advantage: How 50 U.S. Companies are Regaining the Competitive Edge by L. William Seidman and Steven L. Skancke