James B. Thomson, Ph.D.

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Education:

• Ph.D./M.A., Economics, The Ohio State University.
• B.S., Economics with High Honors, The Georgia Institute of Technology

Biography

Professional & Academic Experience:

Academic Experience

• The University of Akron, College of Business Administration: Professor and Finance Chair, 08/2012 – present
• Cleveland State University, Economics Department: Lecturer, 09/1987 – 07/2012
• Kent State University, Graduate School of Management: Lecturer, 09/2009 – 03/2012
• Case Western Reserve University, Weatherhead School of Management: Lecturer, 09/1994 – 12/2010

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Research Accomplishments

PUBLICATIONS

Economics and Finance Journals

• The Importance of financial market development on the relationship between loan guarantees for SMEs and local market employment rates (with C. Armstrong, B. Craig and W. Jackson III) Journal of Small Business Management (2012 -- forthcoming).
• Predicting Credit Spreads (with C. N. V. Krishnan and P. Ritchken), Journal of Financial Intermediation 19 (October 2010) 529–563.
• The Economic Impact of the Small Business Administration's Intervention in the Small Firm Credit Market: A Review of the Research Literature, (with B. Craig and W. Jackson III) Journal of Small Business Management 47 (April 2009), 221 – 231.
• On Umbrella Supervision and the Role of the Central Bank (with J. Haubrich), Journal of Bank Regulation 10 (November 2008), 17-27.
• Credit Market Failure Intervention: Do Government Sponsored Small Business Credit Programs enrich poorer areas? (with B. Craig and W. Jackson III) Small Business Economics 30 (April 2008), 345-360.
• SBA-Loan Guarantees and Local Economic Growth (with B. Craig and W. Jackson III), Journal of Small Business Management 45 (January 2007), 116-132.
• On Credit Spread Slopes and Predicting Bank Risk (with C. N. V. Krishnan and P. Ritchken), Journal of Money, Credit and Banking 38 (September 2006), 1545-1574.
• Monitoring and Controlling Bank Risk: Does Risky Debt Serve any Purpose? (with C.N.V. Krishnan and P. Ritchken), Journal of Finance 60 (February 2005), 343-378.
• Getting the Most Out of a Mandatory Subordinated Debt Requirement (with R. Fan, J. Haubrich, and P. Ritchken), Journal of Financial Services Research 24 (October/December 2003), 149-179.
• Federal Home Loan Bank Lending To Community Banks: Are Targeted Subsidies Desirable? (with B. Craig), Journal of Financial Services Research 23:1 (2003), 5-28.
• The Role of Central Banks in Money and Payments Systems, Journal of Money, Credit and Banking 31 (August 1999, part 2), 677-681.
• Optimal Financial Structure and Bank Capital Requirements: An Empirical Investigation, (with W. Osterberg) Journal of Financial Services Research 10 (December 1996), 315-332.
• Loan Sales, Implicit Contracts, and Bank Structure, (with J. Haubrich) Review of Quantitative Finance and Accounting 7 (September 1996), 140-162.
• Capital Forbearance and Thrifts: Examining the Costs of Regulatory Gambling, (with R. DeGennaro) Journal of Financial Services Research 10 (September 1996), 199-211.
• Anticipating Bailouts: The Incentive-Conflict Model and the Collapse of the Ohio Deposit Guarantee Fund, (with R. DeGennaro) Journal of Banking and Finance 19 (November 1995), 1401-1418.
• On Flexibility, Capital Structure and Investment Decisions for the Insured Bank, (with P. Ritchken, R. DeGennaro, and A. Li) Journal of Banking and Finance 17 (December 1993), 1133-1146.
• Troubled Savings and Loan Institutions: Turnaround Strategies Under Insolvency, (with R.  DeGennaro and L. Lang) Financial Management 22 (Autumn 1993), 163-175.
• Modeling the Bank Regulator's Closure Option: A Two-Step Logit Regression Approach, Journal of Financial Services Research 6 (1992), 5-23.
• The Effect of Subordinated Debt and Surety Bonds on the Cost of Capital for Banks and on the Value of Federal Deposit Insurance, (with W. Osterberg) Journal of Banking and Finance 15 (September 1991), 939-953.
• Errors in Recorded Security Prices and the Turn-of‑the‑Year Effect, Journal of Financial and Quantitative Analysis 24 (December 1989), 513‑526.
• The Use of Market Information in Pricing Deposit Insurance, Journal of Money, Credit and Banking 19 (November 1987), 528‑537.

Other Journals

• Public Policy in Support of Small Business:  The American Experience (with B. Craig and W. Jackson III), Entrepreneurial Business Law Journal 6 no. 2, 457-467.
• Cleaning up the Refuse from a Financial Crisis:  The Case for a Resolution Management Corporation, The Florida State University Business Review10 no. 1 (Spring 2011), 1-23.
• On Systemically Important Financial Institutions and Progressive Systemic Mitigation, DePaul Business & Commercial Law Journal 8 no. 2 (Winter 2010), 135-150.
• Too Big to Fail and the Definition of Systemic Significance (with J. Haubrich), Lombard Street 1 no. 15 (November 2, 2009), 24-30.
• Small Firm Credit Market Discrimination, Small Business Administration Guaranteed Lending, and Local Market Economic Performance (with B. Craig and W. Jackson III), The ANNALS of the American Academy of Political and Social Science 613 (September 2007), 73-94.
• Large Shareholders and Market Discipline in a Regulated Industry: A Clinical Study of Mellon Bank (with J. Haubrich), Corporate Ownership and Control 1 (Fall 2003), 156-169.
• Key Aspects for an Armenian Deposit Insurance System (with A. Manukyan), Rynok kapitala v Armenii No 13, 14 (June 2003), 52-57.
• An Insider's View of the Political Economy of the Too Big to Let Fail Doctrine, (with W. Todd) Public Budgeting and Financial Management: An International Journal, 3 (1991), 547-617.
• Rethinking and Living with the Limits of Bank Regulation, (with W. Todd) The Cato Journal 9 (Winter 1990), 579‑600.

Research Volumes

• Systemic Banking Crises (with O. Ergungor), Research in Finance 23 (2007), Elsevier Ltd., Amsterdam, 279-310.
• Depositor Preference Legislation and Failed Bank Resolution Costs, (with W. Osterberg) Research in Finance 20 (2003), Elsevier Ltd., Amsterdam, 33-59.
• Loan Sales: Pacific Rim Trade in Non-Tradable Assets, (with J. Haubrich) Advances In International Banking and Finance 3 (1998), JAI Press, Greenwich, CN, 73-98.
• The Changing Role of Banks and the Changing Value of Deposit Guarantees, (with P. Ritchken and I. Popova) Advances In International Banking and Finance 3 (1998), JAI Press, Greenwich, CN, 1-22.
• Regulatory Taxes, Investment and Financing Decisions for Insured Banks, (with A. Li, P. Ritchken, and L. Sankarasubramanian) Advances In International Banking and Finance 2 (1996), JAI Press, Greenwich, CN, 1-30.
• Bank Capital Requirements and Optimal Capital Structure for Banks, (with W. Osterberg) Research in Finance 14 (1996), JAI Press, Greenwich, CN, 87-98.
• The Asset Flexibility Option and the Valuation of Deposit Insurance, (with P. Ritchken, R.  DeGennaro, A. Li) Research in Finance 13 (1995), JAI Press, Greenwich, CN, 219-236.
• On the Use of the Statistical Market-Value Accounting Model (SMVAM) in Thrifts, (with A. Demirgüc-Kunt) Research in Finance 10 (1992), JAI Press, Greenwich, CN, 239-246.
• A Market‑Based Approach to Reforming Bank Regulation and Federal Deposit Insurance, Research in Financial Services: Private and Public Policy 4 (1992), JAI Press, Greenwich, CN, 93-109.
• Deposit Insurance and the Cost of Capital, (with W. Osterberg) Research in Finance 8 (1990), JAI Press, Greenwich, CN, 255‑270.
• Collections, Conference Volumes and Other Publications
• On Government intervention in the small firm credit market and economic performance, (with B. Craig and W. Jackson III) Entrepreneurship in Emerging Domestic Markets: Barriers and Innovation, Milken Institute Series on Financial Innovation and Economic Growth, Springer (2008), 47-67.
• Does Small Business Administration Guaranteed Lending Improve Economic Performance in Low-Income Areas? (with B. Craig and W. Jackson III), Entrepreneurship in Low- and Moderate- Income Communities (2006), 55-85.
• On SBA Guaranteed Lending and Economic Growth (with B. Craig and W. Jackson III), Economic Development Through Entrepreneurship: Government, University and Business Linkages (New Horizons in Entrepreneurship), Edward Elgar Publishing (2006), 127-150.
• Introduction to Declining Treasury Debt, (with J. Haubrich), Journal of Money, Credit and Banking 34 (August 2002) Pt 2, 701-706.
• Introduction to What Should Central Banks Do? (with J. Haubrich) Journal of Money, Credit and Banking 32 (August 2000) Pt 2, 445-449.
• Introduction to Comparative Financial Systems, (with J. Haubrich) Journal of Money, Credit and Banking 30 (August 1998) Pt 2, 421-425.
• Introduction to Derivatives and Intermediation, (with J. Haubrich) Journal of Money, Credit and Banking 28 (August 1996) Pt. 2, 421-425.
• Introduction to Federal Credit Allocation, (with J. Haubrich) Journal of Money, Credit and Banking 26 (August 1994) Pt. 2, 517-522.
• Discussion of Objectives of Bank Management, Proceedings from a Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago (May 1994), 468-473.
• Underlying Determinants of Closed Bank Resolution Costs, (with W. Osterberg), Bank Failures: Causes and Consequences and Cures, J. H. Wood and M. S. Lawlor, eds., Norwell, MA:  Kluwer Academic Press, 1994, 120-136.
• Capital Requirements and Optimal Bank Portfolios: A Reexamination, (with W. Osterberg) Proceedings from a Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago (May 1988), 112‑127.

Federal Reserve Bank of Cleveland

• How Well Does Bankruptcy Work when Large Financial Firms Fail?  Some Lessons from Lehman Brothers (with T. Fitzpatrick). Economic Commentary 2011-23 (October 26, 2011).
• Resolving Large, Complex Financial Firms (with T. Fitzpatrick and M. Greenlee). Economic Commentary 2011-16 (August 31, 2011).
• Against the Grain—Countercyclical Capital Requirements (with J. Haubrich). Forefront 2(1) (Winter 2011), 16-19.
• How to Build a Bad Bank—for the Greater Good.  Forefront 2(1) (Winter 2011), 12-15.
• An End to Too Big to Let Fail? The Dodd–Frank Act’s Orderly Liquidation Authority (with T. Fitzpatrick) Economic Commentary 2011-1 (January 6, 2011).
• Stripdowns and Bankruptcy:  Lessons from Agricultural Bankruptcy Reform (with T. Fitzpatrick) Economic Commentary 2010-9 (August 3, 2010).
• Can a Stock Option Predict Financial System Chaos? Forefront 1(2) (Spring 2010), 18-19.
• A Workshop on Entrepreneurial Finance, (with T. Dunne and S. Shane), Federal Reserve Bank of Cleveland Policy Discussion Paper 28 (November 2009).
• Identifying and Resolving Financial Crises: A Conference Overview (with J. Haubrich), Federal Reserve Bank of Cleveland Policy Discussion Paper 24 (August 2008).
• Central Banks and Crisis Management (with O. Ergungor and J. Haubrich) Federal Reserve Bank of Cleveland Annual Report 2007, 7-20.
• Credit Spreads and Subordinated Debt (with J. Haubrich), Economic Commentary, March 1, 2007.
• Industrial Loan Companies (with O. Ergungor), Economic Commentary, October 1, 2006.
• The Role of Relationships in Small-Business Lending (with B. Craig and W. Jackson III), Economic Commentary, October 15, 2005.
• Umbrella Supervision (with J. Haubrich), Economic Commentary, September 1, 2005.
• Are SBA Loan Guarantees Desirable? (with B. Craig and W. Jackson III), Economic Commentary, September 15, 2004.
• The Evolving Role of the Federal Home Loan Banks in Mortgage Markets (with D. Maloney), Economic Commentary, June 2003.
• Commercial Bank Borrowing from the Federal Home Loan Banks, Economic Commentary, July 2002.
• Who Benefits from Increasing the Federal Deposit Insurance Limit? Economic Commentary, September 15, 2001.
• Unitary Thrifts: A Performance Analysis, Economic Review 2^nd Quarter (2001), 2-14.
• Two Deposit Insurance Funds Are Not Necessarily Better Than One, Economic Commentary, October 15, 2000.
• Raising the Deposit-Insurance Limit:  A Bad Idea Whose Time Has Come? Economic Commentary, April 15, 2000.
• The Exchange Stabilization Fund: How It Works, (with W. Osterberg) Economic Commentary, December 1999.
• Depositor Preference Laws and the Cost of Debt Capital, (with W. Osterberg) Economic Review 3^rd Quarter (1999), 10-20.
• The Truth About Hedge Funds, (with W. Osterberg) Economic Commentary, May 1, 1999.
• Banking Consolidation and Correspondent Banking, (with W. Osterberg) Economic Review 1^st Quarter (1999), 9-20.
• Bank Notes and Stored-Value Cards: Stepping Lightly into the Past, (with W. Osterberg) Economic Commentary, September 1, 1998.
• Network Externalities: The Catch-22 for Retail Payments Innovations, (with W. Osterberg) Economic Commentary, February 15, 1998.
• SAIF Policy Options, (with W. Osterberg) Economic Commentary, June 1995.
• Federal Funds Futures as an Indicator of Future Monetary Policy: A Primer, (with J. Carlson and J. McIntire) Economic Review 1^st Quarter (1995), 20-30.
• Federal Credit Allocation, (with J. Haubrich) Economic Review 3^rd Quarter (1994), 2-13.
• The National Depositor Preference Law, Economic Commentary, February 15, 1994.
• Making the SAIF Safe for Taxpayers, (with W. Osterberg) Economic Commentary, November 1, 1993.
• The Evolving Loan Sales Market, (with J. Haubrich) Economic Commentary, July 15, 1993.
• The Cost of Buying Time: Lessons from the Thrift Debacle, Economic Commentary, January 1, 1993.
• Forbearance, Subordinated Debt, and the Cost of Capital for Insured Depositories, (with W. Osterberg) Economic Review 3^rd Quarter (1992), 16-26.
• FDICIA's Prompt Corrective Action Provisions, (with C. Pike) Economic Commentary, September 1, 1992.
• The RTC and the Escalating Costs of the Thrift Insurance Mess, (with C. Pike) Economic Commentary, May 15, 1991.
• Predicting Bank Failures in the 1980s, Economic Review 1^st Quarter (1991), 9-20.
• Underlying Causes of Commercial Bank Failures During the 1980s, (with L. Seballos) Economic Commentary, September 1, 1990.
• Using Market Incentives to Reform Bank Regulation and Federal Deposit Insurance, Economic Review 1^st Quarter (1990), 28‑40.
• Economic Principles and Deposit Insurance Reform, Economic Commentary, May 15, 1989.
• Bank Lending to LBOs: Risks and Supervisory Response, Economic Commentary, February 15, 1989.
• Bank Capital Requirements and the Riskiness of Banks: A Review, (with W. Osterberg) Economic Review 1st Quarter (1989), 10‑17.
• Using Financial Data to Identify Changes in Bank Condition, (with G. Whalen) Economic Review 2^nd Quarter (1988), 17‑26.
• FDIC Policies for Dealing with Failed and Troubled Institutions, (with D. Caliguire) Economic Commentary, October 1, 1987.
• FSLIC Forbearances to Stockholders and the Value of Savings and Loan Shares, Economic Review 3^rd Quarter (1987), 26‑35.
• Interbank Exposure in the Fourth Federal Reserve District, Economic Commentary, August 1, 1987.
• Alternative Methods for Assessing Risk-Based Deposit Insurance Premiums, Economic Commentary, September 15, 1986.
• Equity, Efficiency, and Mispriced Deposit Guarantees, Economic Commentary, July 15, 1986.

Working Papers

• Stripping Down the Rhetoric: Is there a Case for Mortgage Loan Modifications in Bankruptcy? (with T. Fitzpatrick) Federal Reserve Bank of Cleveland Working Paper 12-xx, (forthcoming).
• Silver Certificates and National Bank Notes (with B. Champ), Federal Reserve Bank of Cleveland Working Paper 06-22, December 2006.
• PSAF, Economic Capital and the New Basel Accord, Federal Reserve Bank of Cleveland, Working Paper 0111, August 2001.
• Reliability Analysis of the Federal Reserve Automated Payments Systems, (with A. Burnetas and G. Reynolds), Federal Reserve Financial Services Research Group Working Paper 97-03, March 1997.

Work-in-Progress

•  Administrative versus judicial resolution of distressed firms (with T. Fitzpatrick)
• Advantages of Prepackaged Insolvency Regimes for BHCs and their Subsidiaries (with E. Kane)
• Do SBA Loan Guarantees improve local economic performance? (with B. Craig and W. Jackson)