Banks Likely to Fail Notre Dame Graduates Nancy Neering at UCLA in 1987 As an Graduates of the University
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t i X H OBSERVER Monday, February 19, 1996* Vol. XXVII No. 92 THE INDEPENDENT NEWSPAPER SERVING NOTRE DAME AND SAINT MARY'S Tax assistance provides ‘real world’ experience By MAUREEN HURLEY pared,” said Saint Mary’s alumna and Saint Mary's News Editor CPA Kristi Horvath, who volunteers with the program. “Anytime I’ve been there, Everyone's favorite time of the year is there has been an excellent turnout.” approaching. Student participants agree on the pro Tax time. gram’s community impact. “The pro Saint Mary’s and Notre Dame stu gram is for the working poor. We can dents, staff members hopefully get them tax advantages and afid M ichiana resi tax breaks, without them having to pay dents with an annual consultation fees,” said Saint Mary’s income of less than business major Danielle Fikel. $25,000 for 1995 are Milani stresses the real-world experi eligible for free tax ence accounting majors receive, along consultation through with the service provided to the commu the Tax Assistance nity. “These are real people, and real Program. money,” he said. “This isn’t just a hypo “It’s the largest pro M ila n i thetical textbook problem. ” gram in Indiana," said Claude Renshaw, business professor Ken Milani, coordinator and professor of and Saint Mary’s coordinator, said the accountancy at Notre Dame. students receive highly specialized train Accounting majors, along with staff ing students to prepare the federal and members from six Michiana accounting state tax returns. “They’re trained to firms, offer free consultation at campus help these low-income clients take sites, along with locations at local advantage of the tax laws, get deduc libraries and neighborhood centers. tions, and save money,” he said. These students take a course in feder The program is funded by the Notre al tax, along with four weeks of training Dame College of Business and courses offered at Notre Dame “focused Administration, with supplies provided on the needs of low-income taxpayers,” by the Internal Revenue Service and the Milani said. Indiana Department of Revenue. In the over the 25 years in existence, Representatives are available at the the program gained popularity. Last Notre Dame Center for Social Concerns year, over 1800 returns were filed by from 2:30 p.m. to 5 p.m. on Wednesdays The Observer/Rob Finch program volunteers. and on the Saint Mary’s campus “This is a very valuable program. A Tuesdays from 3:30 p.m. to 5:30 p.m. in Saint Mary’s and Notre Dame Accounting students offer tax consultation through the lot of these people could not ordinarily room 304 of the Ilaggar College Center Tax Assistance Program. The service is offered throughout the week at both campuses, have their taxes professionally pre through April 15 for consultation. along with locations in the Michiana community. ND announces new trustees Chami: Clinton’s plan Special to The Observer faculty in the Department of 1990 in one of the two trustee Materials Science and Engi positions reserved for recent for banks likely to fail Notre Dame graduates Nancy neering at UCLA in 1987 as an graduates of the University. llaegel and Thomas Larkin and assistant professor and two She has served on Notre By MELANIE LAFLIN to use monitoring as a substi Northwestern University Chan years later was promoted to as Dame’s Advisory Council for Assistant News Editor tute for the trouble-free credit cellor Arnold Weber have been sociate professor with tenure. Graduate Studies and Research history required by commercial elected to the University of She moved to Fairfield Univer since 1990. The Grameen Bank in banks. Notre Dame's Board of sity, a Jesuit institution, in Fair Larkin has been president Bangladesh seems to have Chami explained his findings Trustees. field, Conn., in 1993. and chief operating officer of caught President Clinton’s eye. by using the kye system found An associate professor of llaegel’s research interests the Los Angeles-based Trust The bank’s special program, in the Los Angeles Korean com physics at Fairfield University, are in the area of semiconduc Company of the West (TCW) giving its rural poor access to munity as an example of a suc llaegel graduated from Notre tor materials, including the de since 1977. He also serves as commercial loans when they cessful model. Dame in 1981 as co-valedicto velopment and modeling of in chairman and managing direc might otherwise be denied “The kye system uses a more rian of her class with a bache frared detectors for use on as tor of TCW Funds Management, credit, appears to be working informal approach. A fresh lor of science degree in tronomy satellites. She received Inc., and vice chairman and since its inception in 1976. immigrant can receive a loan metallurgical engineering and the Excellence in Teaching m anaging director of TCW Now, President Clinton and from a private lender because materials science. Award from the UCLA School of Asset Management Company. Congress are trying to establish his boss vouches for his credi After earning her master's Engineering in 1989 and was Larkin earned a bachelor’s a nationwide system of com bility. This new immigrant is and doctoral degrees from the selected in 1990 to participate degree in economics from Notre munity banks to assist inner- less integrated into society than University of California, Berke in the Kellogg National Dame in 1961 and pursued city entrepreneurs, applying someone who has lived in the ley, she worked as a research Fellowship Program, a leader postgraduate studies at the what has worked in countries U.S. all his/her life and there scientist at the Siemens Re ship development initiative. New York University Graduate such as Bangladesh to the U.S. fore, it would be more difficult search Laboratories in Erlan llaegel served on Notre School of Business from 1962 to Legislation that would provide to run with the money and lose gen, Germany. She joined the Dame’s Board from 1987 to see TRUSTEE / page 8 federal money for the estab face in front of his/her small, lishment of several community ethnic community,” said banks has been proposed. Chami. Ralph Chami, a Notre Dame Chami and Fischer also ad assistant professor of finance dressed common culture and and business economics, and lack of mobility as prime rea Jeffrey Fischer, a deputy assis sons for the success of the tant director at the Federal Bangladesh bank. Trade Commission, disapprove. In their study, Chami and In Chami and Fischer’s new Fischer state, "Living in a small study, recently published in the village makes disappearing Cato Journal, they write, “com within the village impossible, munity banking in the United unlike within a large States on a large scale is city...Family ties make relocat unlikely to be profitable.” ing to avoid repayment a cost “Inner cities may need capi lier decision than in a highly tal, but the monitoring mecha mobile society such as the nism that works so well in United States...Thus the combi rural Bangladesh is not avail nation of monitoring and geo able in urban America,” they graphic immobility allows the added. bank to remain profitable In an examination of com despite the bank’s inability to munity banking projects and screen out high-risk borrowers related institutions abroad, as do commercial banks.” Chami and Fischer found that Clinton's proposal of the cre The Observer/Dave Murphy successful models have been ation of a system of 100 com based in areas with relatively munity banks in urban America Car 54, W here are you? homogeneous and geographi is completely different from the Notre Dame Security officer Kevin Knight works the weekend shift at the dispatch center. cally immobile borrowers. These factors allowed lenders see BANKS I page 8 page 2 The Observer • INSIDE Monday, February 19, 1996 m INSIDE COLUMN Fire up Officials investigate Amtrak train wreck in Maryland WASHINGTON Investigators picked through mangled wreckage Train crash in Maryland Sunday to determine why a commuter train was How an Amtrak and a Maryland commuter train that moving more than twice as fast as it should have collided Friday evening, according to preliminary reports. been just before slamming into an Amtrak pas E MARC senger liner. Eleven people died in the ensuing com m uter torch fireball. train : The MARC commuter train was going 63 mph when its engineer apparently sighted the ap D F reight MARC train There are competing m oving train : T ra c k 2 theories as to why Greek proaching Amtrak locomotive and slammed on southeast on Amtrak train the emergency brakes Friday evening, National track 2 when civilization fell from grea switches to ness. Some argue that, Transportation Safety Board member John Goglia track 2 to pass crash occurs like all lights which burn said. It was too late to avoid the deadly pileup. slower freight 11 dead were train on track 1 T ra c k 1 rep o rted ly brightly, the majesty of in first MARC Greek culture was des A signal a few miles back should have warned tined to eventually fade. the MARC train to slow to 30 mph and be pre Others argue that it is pared to stop. Investigators want to know simply because, as a whether the engineer missed that signal or if it E Am trak people, they liked to Dave Kellett malfunctioned. p a sse n g e r wrestle naked and Staff Cartoonist “Clearly the focus is moving toward the opera S ite of train : c r a s h M iles reward the winner with tor since we have found absolutely no difficulties After passing a hat made of leaves.