Last night, hundreds of students and faculty members attended an address on the national financial crisis hosted by the Foster School of Business in Kane Hall. Even though the event was planned only last week, organizers had no problems filling seats in the lecture hall.

Kane 210 was filled to capacity as audience members sought seats in the aisle and stairs. Dozens more were turned away, a pointed indicator at just how pertinent an issue the current financial situation is and how important the issue is to students in the community.

Addressing the audience was a panel of three economic and finance experts: Ali Tarbourni, a senior lecturer in business economics in the School of Business Administration; Alan Hess, professor of finance and business economics in the Foster School of Business; and John Rindlaub, CEO of Wells Fargo Bank for the Pacific Northwest region. Dean James Jiambalvo of the Foster School of Business mediated the discussion and posed questions to each of the panelists.

“Causes, consequences, and cures,” were the words that Jiambalvo used to describe the goal of the evening’s discussion. Jiambalvo asked the experts questions about each before inviting the audience to ask specific questions.

“This too shall pass away,” said Hess about the current financial crisis as he quoted President Lincoln. “The question is, will it pass fast or slow, and with what effects.”

To the surprise of many audience members and contrary to what mainstream media has been reporting, all three experts wanted to clarify that a government relief for the financial crisis would not be a bailout of “Wall Street fat-cats” as it has often been referenced.

“The system is worth saving, but the investors will get wiped out,” Hess said. “And that’s the way it should be.”

Hess and the other panelists laughed sheepishly at this point, admitting it was them and most of their colleagues who would, in fact, lose the most on their portfolios.

“Those who invested in banks deserve to be wiped out; we weren’t paying attention,” Hess said.

Rindlaub agreed.

“In a free market, you play, you get burned, and maybe you won’t play the same way in the future,” he said.

While all three panelists agree that a government solution is the most feasible way to save the financial system, they did not affirm government involvement in the economic process.

“All of the problems we are seeing today with the FDIC is the result of a huge government failure,” said Hess. “Our government coerced lenders to make loans that they explicitly shouldn’t have been making ... There are people in Congress who don’t understand economics.”

Questions from the audience were specific and ranged from inquiries about FDIC standards to effects on dividends and future savings.

Cecillia Espiritu, a senior in the Foster School of Business and a finance major, asked a question about the de-leveraging of financial institutions.

“This is an important issue, and I wanted to hear a point of view from someone other than the media,” said Espiritu. “It was very impressive for the School of Business to put this all together on such short notice.”

Adam Sherman, a first year graduate student in the Evans School of Public Affairs, thought the discussion panel was an important source of information as well.

“I wouldn’t say my opinions have changed after listening to the panelists, they of course have their own biases,” Sherman said. “But I have a more enriched perspective now from an academic standpoint rather than just the media.”

Jiambalvo was pleased with the event as well, especially with the turnout and interest from the student body.

“I knew we would have a full house, but not with people sitting in the aisles.” said Jiambalvo. “Frankly, as a faculty member, it is inspiring to see our students participating in such a manner, and I think people heard very clearly the issues at hand.”

Reach reporter Casey Smith at news@dailyuw.com.