Summer 2009 a newsletter of the Department of Finance, and Law

SUMMER 2008 Contacts Chair perspectives Department of Finance, Lessons for students of the financial crisis Insurance and Law chairperson Gary Koppenhaver Times are interesting for all students of the U.S. financial system. Since the spring (309) 438-8777 and fall of 2008, you get the sense that significant financial history is happening. [email protected] What should our current finance, insurance and law students be taking away as events unfold? Are there Internship coordinators lessons that will help our students deal with present Kim Small for finance majors and future financial turmoil? (309) 438-2928 While debate continues on the causes of the [email protected] financial crisis, a dynamic, changing society makes Debbie Babcock the causes of the crisis less important than the les- for insurance majors sons learned. I offer my observations on two things (309) 438-3368 that students of the financial crisis can learn from the [email protected] extraordinary events of the past 18 months. Undergraduate academic advisor First, it seems clear that our system of financial Nancy Baldoni markets is not immune to behavioral “blind spots.” (309) 438-8385 These blind spots affect investors, financial advi- Gary Koppenhaver [email protected] sors, corporate leaders, and regulators–sometimes simultaneously. The incorrect assessment and mismanagement of risk relative to Financial Management expected returns can be as catching as the flu; the crowd can be dangerous and Association faculty advisors dramatically wrong. Sensitivity to risk varies over time and participants can be Keldon Bauer caught in the illusions of liquidity and precise information. These blind spots put (309) 438-7991 a premium on thinking critically about financial decisions and economic condi- [email protected] tions. As instructors, we build critical thinking into the curriculum to develop Linda Miles these skills, but students need to be aware of the importance of wondering why, (309) 438-2448 for example, investors at times demand so little compensation for risk. [email protected] Second, debate about the value of markets free from direct government/ Joseph Trefzger taxpayer intervention raises significant questions for students of the financial (309) 438-2966 crisis, not clear solutions. The questions alone merit open discussion in class. [email protected] Students must come to realize that nothing is cast in concrete in a dynamic system except a few enduring truths. One truth is the law of unintended Student president consequences, which is evidenced both by Adam Smith’s invisible hand of Collin Geninatti competition and by a government mandate (circa 2000) to increase mortgage [email protected] lending by Freddie and Fannie, as examples. Another truth is that correct decision-making incentives imply “skin in Gamma Iota Sigma the game.” The financial crisis is very much about the loss of trust and cred- faculty advisors ibility between financial market firms; incentives can get no better than acting Debbie Babcock through a position of ownership. (309) 438-3368 A last truth is that private enterprise is good for human progress. Com- [email protected] pared to the alternatives, a free-market economy is best at generating income Yu-Luen Ma and growth, creating wealth and raising productivity. Public policy decisions (309) 438-7081 that fail to reflect these enduring truths risk harming the financial system. [email protected] If you have other financial crisis lessons our students should learn, share them with me. The perspectives of our alums and friends matter and can help Student president our students succeed in an ever-changing economy. Jeremy Gallico [email protected] Warm regards, Gary D. Koppenhaver, Chair and Professor Student internships, summer 2008–spring 2009 New financial planning minor The Department of Finance, Insurance and Law provides experiential learning for guarding the nest egg opportunities for our students through internships with our business partners. In March 2009, Illinois State University approved the offering of a minor degree Based on the idea that students learn program in financial planning by the faculty of the Department of Finance, Insur- best through experience, the department ance and Law starting in the fall 2009 semester. Requirements for the financial sincerely appreciates the sponsorship planning minor include coursework in finance (investments, retirement plan- by the firms listed below. If your firm is interested in participating in the internship ning), insurance, law (estate planning), accounting (personal income taxation), program, please contact Kim Small, Finance and marketing (personal selling). The purpose of the minor is to prepare students internship coordinator, at (309) 438-2928 for the certified financial planner designation. Members of the Department of -Fi or [email protected], or Debbie Babcock, Insurance internship coordinator, at (309) nance, Insurance and Law Advisory Board and the Educational Investment Fund 438-3368 or [email protected]. Board of Directors have long endorsed the minor. The minor places the depart- ment squarely on the side of financial advisors acting under fiduciary duty or the Summer 2008 obligation to put their client’s interest first rather than the suitability standard for Brett Anderson Bank of America clients of brokers and other securities salespeople. Matthew Beach Town of Normal Finance Department Christopher Behrns Gamma Iota Sigma update McLean County Government Thomas Byrne Gamma Iota Sigma, a professional Chicago Partners-Navagant Consulting coed fraternity for students inter- Kristin Church ested in insurance, experienced a AIG landmark year. The fall semester Dane Conaway featured golf lessons, Redbird Bank tailgating, and participation in in- Vanessa Contreras London Internship, Katie School/NAPSLO dustry events such as the Alumni Golf Outing, RIMS Luncheons, Shawn Cook Gamma Iota Sigma Alumni Golf Outing Seabrook Plantation and the 2008 REBEX Conference, Stacey Darin among other events. The fall also featured a new week of activity celebrating the Enterprise Rent-A-Car chapter’s 17th birthday. The spring semester included participation in Redbird Matt Decker COUNTRY Financial Basketball, local volunteering, and professional development events such as Thomas Doulas the NAPSLO Symposium, 2009 RIMS Conference, and industry speakers. The Rosemont Magic Touch, Inc. fraternity also hosted the first annual Gamma Games, bringing over 20 industry Patrick Doyle professionals and alumni to campus to network in a carnival style atmosphere. Arthur J Gallagher & Co. A full listing of events is available at katieschool.org or by contacting the new Ryan Doyle president, Jeremy Gallico at [email protected]. Arthur J Gallagher & Co. Derek Dudgeon Great Central Insurance Robert Duerr Kubitz and Vaughn Illinois State Export program, New Zealand early career achievement awardees Mark Esposito Alan Kubitz ’94 and Aaron Vaughn ’95 received College of Business Early Career Bermuda Internship, Katie School/AIG Achievement Awards on Illinois State’s Homecoming weekend, October 2008. The Kymberly Forsythe First State Bank of Bloomington award recognizes outstanding young alumni who have demonstrated professional leadership and the potential for future distinction in their careers. Kubitz is direc- continued on page 3 tor of risk management at The HAVI Group LP. His current responsibilities en- compass managing a variety of risks and integrating enterprise risk management practices into the business culture. Kubitz is active in the insurance community and serves as the current president of the Chicago chapter of the Risk and Insur- a newsletter of the Department ance Management Society. Vaughn is a senior research analyst with Edward Jones of Finance, Insurance and Law & Company, making investment recommendations within the health care sector for the firm’s financial advisors and clients. Vaughn also worked as an analyst for Summer 2009 Robert W. Baird & Company, State Farm Insurance, and First of America Bank. Published annually Vaughn is a chartered financial analyst, certified public accountant, and chairman Illinois State University of FIL’s educational investment fund board of directors. Department of Finance, Insurance, and Law Campus Box 5480 Normal, IL 61790-5480

E-mail: [email protected] Web site: www.cob.ilstu.edu/fil 2 Summer 2009 Internships, continued Christopher Franchi State Farm Bank Faculty member news and recognition Matthew Fritzshall Stepping Stone Properties Each year the Department of Finance, Insurance and Law publicly recognizes the Jeremy Gallico outstanding efforts of its full-time faculty members in the scholarship of teaching, Zurich Internship, Katie School the scholarship of discovery and scholarly service to the institution. In 2009, the Amy Gudenrath following individuals were recognized for their exemplary performance: Joseph Carle Hospital Solberg, professor, for outstanding teaching; Yu-Luen Ma, Desiree Hahs Kankakee County Finance Dept associate professor, for outstanding research; and Edgar Sarah Hamad Norton, professor, for outstanding service. Edward Jones The College of Business MBA Association selected Kevin Linda Han Ahlgrim, assistant professor, as the 2007–2008 Outstand- Enterprise Rent-A-Car ing MBA Professor of the year. The same graduate student Justin Harrison Tamayo organization selected Sylvie Bouriaux, associate professor, Steven Hempel and Carson Varner, professor, as the 2008–2009 Outstand- Maryland Pig Iron Services ing M.B.A. Professors of the year. Jeffrey Henderson Assurance Agency Yu-Luen Ma Kevin Ahlgrim has been promoted from assistant professor to associate professor with tenure. Ahlgrim teaches Adam Hickerson undergraduate Investments, undergraduate Introduction to Risk and Insurance, and Chicago Board Options Exchange M.B.A. Financial Management. His research focus is in enterprise risk management. Marci Hill Strategic Wealth Management Yu-Luen Ma, associate professor, was awarded the designation of College Stacey Hinterlong of Business Caterpillar Faculty Scholar for 2009–2010. The award recognizes a Northwestern Mutual consistent record of high quality scholarship and teaching that helps advance the Michael Jewell College of Business and strengthen the education of FIL students. Rim Logistics On May 15, 2009, William L. Scott, professor, retired Julie Joyce Midwest Insurance Company as a Department of Finance, Insurance and Law faculty Ken Kamentsev member after 25 years. Scott served as chairperson of the State Farm Bank department on two different occasions and as internship Danielle Kinsella coordinator for finance. He is known among the finance Ameriprise Financial academy for his work on the operations of financial Daniel Knapp institutions and markets. He will relocate to Tallahassee, Comptroller of the Currency Chad Lucarelli Florida, with his wife Salli. Northwestern Mutual The department has hired two new tenure-track assis- Patrick Lyons William L. Scott tant professors starting in the fall 2009 semester. Abhishek LYO Trading Varma holds a Ph.D. from Washington State University Mark Maroon and supports the new financial planning curriculum.Katrin Varner holds a J.D. COUNTRY Trust Bank and Master of Human Resources and Industrial Relations from the University of Rees Mason Sibling Entertainment, NYC Illinois and instructs courses in business law. Gayatri Mishra Eurex-Chicago Cordero Mobley FIL students active in Honors Program Electro-Motive Diesel Dakin Munson The Illinois State University Honors Program attracts highly motivated students State Farm Insurance with a strong record of academic success and the potential for further success Matt Neustadt in their careers. The criteria for admission to the Honors Program includes a ThinkPanmure minimum cumulative grade point average of 3.3/4.0 and minimum enrollment in Brian Nolte honors credit hours each semester. The faculty of the Department of Finance, In- COUNTRY Financial surance and Law has been a strong supporter of departmental honors, which has Jon Perry Bermuda Internship, Katie School requirements beyond the university program for Finance and Insurance majors. Vincent Porter, Jr. In the spring 2009 semester, FIL Honors students held the greatest share of American Service Insurance Company honors participation among all College of Business departments with 38 percent Ronnell Robinzine of the COB total. One in nine finance majors and one in 14 Insurance majors are State Farm Insurance members of the departmental honors program. In addition, the department has Ryan Royer Archer Daniels Midland the second largest number of Honors Program students of any department on Eric Samp Illinois State’s campus. FIL Honors students exemplify the culture at Illinois State, Connor and Gallagher Insurance described in its mission statement as a diverse community of scholars. Services Inc. Kimberly Schmehr Insurance Jennifer Sommer Mass Mutual Financial Group Ryan Stolarik Northwestern Mutual DiscLosuRe 3 continued on page 4 Internships, continued Benjamin Tiffany Zurich Internship, Katie School/COUNTRY Financial Professionals share insights with FIL students Kane VanZuiden Neubauer Darr Agency Inc dba Speakers are listed below that visited campus as part of the fall 2008 and spring The Insurance Group 2009 semesters for classes and student organizations. The topics of the presenta- Andy Vuong tions included corporate finance, commercial banking, financial planning, finan- COUNTRY Financial cial crises, insurance, investments, real estate, and risk management. Lauren Wagner London Internship, Katie School Dana White Blake Ahrens Clark Kays Tom Shadid COUNTRY Trust Bank TLI Insurance Aon Illinois State University Markus Zielbauer Roger Andrews Emily Kerwin Ken Stewart Infinity Brokerage E.D. Bullard Caterpillar, Inc. Metlife Brian Beckham Kevin Kingston Jennifer Stokes Fall 2008 Jeffery Bloom Kingston Financial Caterpillar, Inc. Doug Adams Gary Koppenhaver Ric Stuck COUNTRY Financial Mark Burns Illinois State University Caterpillar, Inc. David Aremka COUNTRY Financial Dan Kugler Jeff Telling Zurich North America Erin Carr Snap On Tools Family Credit Counseling JaDawn Bryant Arch Insurance Larry Lonis Jenny Thayer COUNTRY Financial Aaron Curtis Bank of America COUNTRY Financial Rob Foreman MIDCO/COUNTRY Michael Mangino Brian Udy Busey Bank Financial BP Hartford Steam Boiler Jake Gruimond Dave Deneen Andrew Nottestad Aaron Vaughn COUNTRY Financial Wachovia Securities GGP Edward Jones Joni Ishmael Kevin Drucker Nancy Philipsen Tony Wahls Cornerstone Bank State Farm Insurance State Farm Insurance GROWMARK, Inc. Robert Dunn Nick Potthoff Matthew Weber Christian Jimenez Assurance Northwestern Mutual State Farm Bank State Farm Insurance Dick Erickson Bonita Poynter Kay Weir Dylan Keiser Kraft Foods Kraft Foods Illinois State University Caterpillar Inc. Robert Fazzini James Pribel Mark Killian Busey Bank CME Group Illinois Environmental Protection Agency Mark Fennelly Maureen Roach State Farm Insurance Illinois State University Lian Lucas Town of Normal Finance Department Ben Franklin Mike and Ann Ruesy Franklin Financial COUNTRY Trust Bank Beth Massaro Caterpillar Inc. Adam Johnson Eric Schlipf State Farm Insurance Morgan Stanley Rachel Vining Jim Jones Jeff Secord Daily Vidette, Illinois State University Illinois State University Clifton Gunderson Matthew Weber Spring 2009 Abby Baggett The Department of Finance, Insurance and Law extends sincere thanks to the Flanagan State Bank individuals and firms that visit campus and share their knowledge and experience Brent Denton Northwestern Mutual in support of our degree programs. If you or your firm has an interest in making a Rachel Frazelle presentation on campus or sponsoring company visits, please contact the FMA or Mike Wehrenberg State Farm Agency Beta Gamma Sigma faculty advisors. Mary Hamilton Rick McLean State Farm Agency Lashawn Johnson Annual Student Recognition Dinner COUNTRY Financial Tim Kaupp The Department of Finance, Insurance Northwestern Mutual and Law’s annual Student Recognition Christine Kunnath Dinner was held on April 8, 2009, at the InBank Doubletree Hotel in Bloomington. The Ben Libert Heartland Bank student award winners were recognized Thomas Mullins before proud parents, faculty members, Morgan Keegan & Company and members of departmental advisory Dakin Munson Student Matt Flynn and family boards. Gary Koppenhaver, depart- Caterpillar Inc. ment chair, presented the finance major Kevin Orna awards and Jim Jones, director of the Katie School of Insurance and Financial Town of Normal Finance Department Services, presented the insurance major awards. Interim Dean of the College of Mark Scheiner Mike Wehrenberg State Farm Agency Business Charles McGuire, a former chairperson of the department, welcomed the Sabrina Stout gathering of 252 people. University Housing Services, The 2009 Outstanding Senior in Finance is Dane Conaway from Mt. Zion. Illinois State University The 2009 Outstanding Senior in Insurance is Jon Perry from Waukegan. Chad Wills COUNTRY Financial 4 Summer 2009 Financial Management Association update Department of Finance, Insurance and Law The Illinois State University student chapter of the Financial Management Association (FMA) brings Donor Roll finance students into contact with career information January 1, 2008 – May 31, 2009 and networking opportunities through on-campus Anthony Amponsah speakers and off-campus field trips. Six speakers vis- Baxter Credit Union ited FMA meetings in fall 2008, and eight speakers Colm and Helen Brewer visited in spring 2009. Their topics ranged from con- Dennis Bull Center For Investment Research sumer debt management to real estate investing. In Rodney and Marvis Custer October 2008, a panel of eight FMA members who Carl Davison Melanie Angelatos and Brandon Miller, completed internships in summer 2008 shared their David and Kathleen Deneen FMA officers experiences with other students and offered sugges- Randal and Lynn Doty tions on finding internships in the near future. Also in October, the FMA took a Mark and Mindy Finch Paul Frey and Susan Degregorio field trip to three organizations in the northern Chicago suburbs—Kraft Foods, the Devon and Janice Hudson Village of Lincolnshire, and Coe Capital Management. Diane Johnson In January 2009, six FMA members (Tracy Hedrick, Melinda Olson, Heidi Gary and Kay Koppenhaver Traple, Tiffany Nichols, Ashley Barber and Danielle Dunn) participated in Colin Marquis Illinois State’s Expanding Your Horizons program. The event highlights careers in Patrick McLaughlin Robert and Nancy Meyer finance for students visiting campus, and is designed to encourage primary and David Mistic secondary grade students, especially women, to consider pursuing studies that Addie Moy will lead to jobs related to math and science. In April, FMA students traveled to Edgar and Rebecca Norton Elmhurst to meet with Illinois State alumni and attend a panel presentation of Debra Parker finance professionals. The three Illinois State graduates on the panel were Anton Roussev and Anelia Rousseva Robert and Annette Rush Michael O’Keefe, J.P. Morgan Real Estate Banking; and Michelle Rojo and Thomas Schaeffer Charles Sherburne, Bank of America. Other panelists were Paul Gantzert, Jeffrey and Carol Secord Gantzert Investment Company; Larry Lonis, Bank of America; and David Jennifer and David Swearingen Umlauf, David Thomas Partners. The panel members described different career Joseph W. and Connie L. Trefzger paths in finance, shared insights from work experiences, and offered advice on Carson and Iris Varner Mark Whitlock dealing with a difficult job market. Michael and Jacqueline Wright

Educational Investment Fund Finance, Insurance and Law Board of Directors 2009 Advisory Board 2009 Mark J. Burns Nancy Philipsen Stephen Berchem John Lust COUNTRY Financial State Farm Insurance J. P. Morgan Chase Illinois State University David Deneen Jeffrey R. Secord Brian Bruce Dean McNaught Wachovia Securities Clifton Gunderson Center for Investment Caterpillar Inc. Frank J. Haggerty, Jr. Financial Services Research and Analysis Greg Morris Duff & Phelps Investment Jennifer Swearingen S.J. Chang Archer Daniels Midland Management State Farm Bank Illinois State University Terry M. Nichols Michelle Hermann Doug Throneburg Daryl Dagit State Farm Insurance Park National Bank First American Bank Citi Smith Barney Charles Norman Thomas S. Howe Mike Towler Thomas G. Estey Wachovia Securities Illinois State University Corporation The PrivateBank Nancy Philipsen Nathan Jacobs Aaron Vaughn Scott Hintz State Farm Insurance Coe Capital Management Edward Jones State Farm Insurance James Pribel Scott D. Johnson Greg White Scott D. Johnson CME Group Inc. Illinois State University Aurora Illinois State University Robert W. Rush, Jr. Gary D. Koppenhaver Scott Joyce COUNTRY Trust Bank Illinois State University Wachovia Securities Michael J. Rybak David L. Mistic Gary D. Koppenhaver Becker Conviser US Bancorp Illinois State University Professional Review Edgar A. Norton Larry Lonis Jeffrey R. Secord Illinois State University Bank of America Private Clifton Gunderson Wealth Management Financial Services

DiscLosuRe 5 Donations and the challenge of continued success Every gift to the Department of Finance, Insurance and Law can make a difference in someone’s life. Our donors believe in the promise that education can lift people up and afford them a chance to make a better life. The Department, in partnership with dedicated and committed donors, puts private support to work to raise people and programs. Whether it is an award for a deserving student, data necessary for a research project, or a scholarship to help recruit the best students to our programs, your contribution can help ensure the excellence of our majors. To help the Department make a difference, complete and mail the alumni and friends gift form on this page. Please make your check payable to the Illinois State University Foundation, FIL–548-5270. The students, faculty, and staff of the Department of Finance, Insurance and Law sincerely thank all of those that have supported the department and Illinois State University this past year. Your investment helps define the department and makes a continuing impact where it matters most to you.

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