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Leadership Houston Class XXVIII Economy Day
February 4, 2010
By Michele Cowart
  • The Federal Reserve Bank of Dallas – Houston Branch is a wondrous place. There's a lot of money in there, but the real amount is a secret. Money comes in, goes out or gets shredded. Sounds ordinary, just like any other bank, but The Fed is a "banker's bank". According the their website, "the Federal Reserve System provides services to commercial banks and other depository institutions much like those that institutions offer to their customers—dispensing cash, transferring funds, and accepting and safeguarding deposits". Leadership Houston Class XXVIII had the opportunity to tour this grand financial institution on Economy Day, Thursday, February 4, 2010.

    Hosted by Federal Reserve Bank employees Cindy Pena, Public Affairs, Class XXI, Economy Day Chair and Daron Peschel, Vice President, Class XXVII, Leadership Houston Class Members heard from a variety of experts: economic, financial, and entrepreneurial. Each speaker introduced the group to their various industries and shared their perspectives on Houston's Economy. According to a class member, "all of this information was very useful." The first speaker of the day was Bill Gilmer, Vice President and Senior Economist, Federal Reserve Bank of Dallas. His in-depth presentation called Houston and the Economic Recovery.. Last in, First Out? included information about Houston Employment, External Forces that Drive the Houston Economy, the Gross Domestic Product, Industrial Production, Housing, and the Global Economy. Many Leadership Houston class members found Dr. Gilmer's presentation "the most valuable".

    The Greater Houston Partnership's Patrick Jankowski, Vice President Research, presented Houston’s Economic Overview to the assembly. The class found the wealth of information extremely edifying. "The stats and practical information about Houston's economy was great," said one class member.

    Facts About Houston - Did you know?
    • If Houston MSA (10,062 sq. mi.) were a state, it would be greater than Vermont (9,615 sp. mi.).
    • If Houston were a nation ($403.2 billion GDP (2008)), its GDP would be larger than Iran ($385.1 billion GDP).
    • If Houston were a sovereign nation, it would have the world’s 26th largest economy.

    The next segment covered different economic perspectives from across Houston’s industries. Speakers from Aerospace, the Port, Energy and Healthcare discussed their economic impacts on Houston.

    Speakers included - Bobby Watkins, Chief of Staff, Office of the Center Director – NASA Johnson Space Center; James T. Edmonds, Chairman, The Port of Houston Authority; Rick Gehring, Pipeline Business Manager, LyondellBasell Industries; and Dr. Richard Wainerdi, President and CEO, Texas Medical Center.

    Facts about Houston’s Economic Stimulus – Did you know?
    • NASA employs over 3,300 civil servants, according to nasa.gov.
    • The Port of Houston’s public and private marine terminals generate $117.6 billion and 785,049 jobs in the State of Texas according to portofhouston.com.
    • Houston is home to 3300+ energy related organizations, according to houston.org.
    • During the year 2000, the Texas Medical Center, its affiliates, faculty, staff, and visitors had direct local expenditures of $2,635.3 million, according to texasmedicalcenter.org.

    After lunch, Class XXVIII toured the Fed, in all its grandeur. The tour consisted of a history of the architecture designed by Michael Graves. Art displays throughout the entire building include pieces from Aaron Parazette, Janaki Lenie, Leamon Green, Karin Broker, Al Souza, Ellen Francis Tuchman, Dixie Friend Gay and Billie Mercer. The art acquisition and process was coordinated by Julie Kinzelman of Kinzelman Art Consulting, according to kinzelmanart.com. Finally, each class member posed for a photograph with $9 million!

    Dr. Jim Bexley, Chair, Smith-Hulson Endowed Chair of Banking, Sam Houston State University, Board Member & Audit Committee Chair, Federal Reserve Bank of Dallas presented The Financial Crisis – Why the Surprise?, his comments on the economic crisis, that do not necessarily reflect those of the Federal Reserve Bank. Included was an extensive timeline of “obvious” events that began to unravel on April 2, 2007 "when New Century Financial Corporation, a top subprime lender filed for Chapter 11." Also, included was a timeline of the Federal Reserve’s Actions during this time. Dr. Bexley identified some of the causes of the economic crisis citing poor lending practices, overzealous bank regulations, lack of understanding of the problem by congress, and lack of understanding by the general public.

    The final speaker of the day represented those Houston Entrepreneurs that triumphed over adversity. Irma Galvan, owner of Irma's Mexican Restaurant spoke of her life after her husband of 21 years passed away. Left with 4 children, Mrs. Galvan opened a sandwich shop that transformed into a breakfast taco mobile-shop. She sold tacos to lawyers and judges outside of the Harris County Courthouse. This drive and determination to succeed led her to open Irma's Restaurant. Life is not all about work and work is not all about life. Mrs. Galvan referred to the balance needed in everyone’s life. "Life is like the 5 spokes on a wheel: family, friends, work, health, fun," said Galvan. "Each must be in perfect balance to remain stable."

    The Federal Reserve Bank of Dallas – Houston Branch was an incredible host to Leadership Houston Class XXVIII. The group left with handfuls of shredded money and lots of green memories. Special thanks to the Economy Day Committee:

    • Class Day Chair, Cindy Pena, Class XXI
    • Diane Hasell, Class XXI
    • Joel Salazar, Class XXI
    • John Ortega, Class XXVI
    • Jeff Boney, Class XXVII
    • Shirley Kwan, Class XXVII
    • Daron Peschel, Class XXVII


Any questions or comments, please contact us at: leaders@leadershiphouston.org.