facebook.com/theutdmercury | @utdmercury
October 19, 2015
ATEC STUDENTS MAKE NEW FILMS
YOUNG BUCKS LEAD SOCCER TEAMS
ALSO IN THIS ISSUE A&H STUDENT WRITES DEBUT NOVEL PG. 4
THE MERCURY | UTDMERCURY.COM
PG. 8
PG. 5
THE WATCHMAN Before he was teaching in JSOM, Richard Bowen was fighting corruption in Citigroup Story by NIDHI GOTGI
THE MERCURY’S GUIDE TO DALLAS’ BEST HALLOWEEN ATTRACTIONS PG. 6
Alumnus wins Nobel Prize in chemistry Prize is first for university graduate, native of Turkey
Managing Editor
ESTEBAN BUSTILLOS Editor-in-Chief
CHRIS LIN | MERCURY STAFF
Richard Bowen, who started as a professor at UTD in 2008, first noticed irregularities in how Citigroup was handling mortgage transactions in June 2006. Even though he started issuing warnings immediately, Bowen’s testimonies were swept under the rug.
Richard Bowen’s office is like any other professor’s at UTD. There is a desk, some chairs, a couple of bookshelves and papers strewn in an organized mess. There is also a stack of newspapers, consisting of The Dallas Morning News, The New York Times and The Wall Street Journal, sitting inconspicuously in one of the bookshelves. To the average visitor, they may not hold any particular value, but each paper details Bowen’s struggle against one of the largest banks in the U.S. In 2006, the senior lecturer in accounting blew the whistle at Citigroup when he noticed defective mortgages were receiving approval to be sold. Ever since then, he’s been fighting to get the word out about corruption in the banking industry. ***** In early 2006, Bowen was working as the business chief underwriter of all correspondent mortgage operations at Citigroup. Bowen was in charge of all the subprime units that purchased mortgages from other companies and banks. His job was to make sure these mortgages met company policy before they were ready to be sold. By talking to his key managers, Bowen realized that in one area of the mortgage operations, a large number of mortgages were missing critical information.
He found out that the underwriters who worked in his department were overriding the company’s policy and approving incomplete mortgage files to make an easy profit. “Basically what happened was the mortgage companies that were selling to us realized that even if (they) didn’t meet our requirements, if they left out the documents that prove they didn’t meet our requirements, we’d still buy it,” Bowen said. “They’d figured that out early on.” Buying and selling these defective mortgages could’ve led to Citi repurchasing them, resulting in significant profit losses, the possible shutdown of Citigroup and numerous people getting laid off. Bowen started issuing warnings immediately. “The whole (system) was broken,” he said. “We were giving representations and warranties to those purchasers that were buying the mortgages that they met our guidelines. And so I took my job seriously. I mean, this was a huge job. I just started trying to get it fixed.” Despite Bowen’s efforts, by 2007, the defective mortgage rate in Citigroup increased to over 80 percent. “That’s when I knew, you know, I had to get to the Board of Directors,” Bowen said. “This was widespread. Everybody knew about it. Nobody was really
doing anything about it. And that’s when I sent the Rubin e-mail.” On Nov. 3, 2007, Bowen wrote an email to Robert Rubin, the newly appointed CEO of Citigroup. In the email, he detailed unrecognized financial losses and breakdowns in internal controls. Bowen said he knew he had a limited amount of time left at the company, so he felt compelled to reach the Board as soon as possible. But no one would listen. “This thing was getting bigger and bigger and people were looking the other way and it was very distressing,” he said. By the end of January 2008, Citi placed him on administrative leave and relieved him of his responsibilities due to his incessant stream of warnings. By this time, actions like the ones Citigroup had taken had started to play a major role in causing the Great Recession. He said it was a trying time for him and his family, but they sought support from each other. “It will take a toll on you,” he said. “If you read some of the books about whistleblowers, a huge number of them go through divorces and it really
→ SEE WATCHMAN, PAGE 12
Religion mixes with politics on campaign trail Plano church forum with presidential candidates highlights growing influence of Christianity on conservatives MIRIAM PERCIVAL Mercury Staff
The church auditorium was filled with enthusiasm as the six presidential hopefuls strolled onto the stage. The audience looked forward to hearing about how religion plays a role in the candidates’ personal and political lives. On Oct. 18, Prestonwood Baptist Church partnered with the Faith & Freedom Coalition to hold a forum to discuss the importance of faith in public life. Over 7,000 people attended the event, with 10,000 more watching the livestream online. Among the candidates present were Carly Fiorina, Governor Jeb Bush, Senator Rick Santorum, Ben Carson, Senator Ted Cruz and Governor Mike Huckabee. The forum allowed each candidate 10 minutes to address the audience, and then another 10 minutes for a discussion led by Jack Graham, the pastor of the congregation. Candidates discussed political issues such as the defunding of Planned Parenthood and the perceived attack on Christianity in America. While they mostly stayed within the realm of politics, candidates often talked about religion and how it affects their political and personal lives.
SURAIYA RAHMETULLA | MERCURY STAFF
On Oct. 18, Republican presidential candidates Carly Fiorina, Ted Cruz (above), Rick Santorum, Mike Huckabee, Ben Carson and Jeb Bush all visited Pretonwood Baptist Church in Plano for a forum on their policies and faith.
“The Bible is very clear about the responsibility to help the poor. It’s mentioned hundreds of times in the Bible, (but) I don’t think anywhere in the Bible (it says) that the government is supposed to do that,” Santorum said. This forum was particularly unusual because of the number of candidates attending the event. Political science professor Thomas Brunell said
that he has rarely seen an event like this hosted by a church. “I don’t know if I’ve ever heard of a church getting multiple people like this to have a pseudodebate,” Brunell said. “Of course, politicians go to churches all the time, so that’s not surprising.”
→ SEE RELIGION, PAGE 11
For the first time in university history, a Nobel Prize has been awarded to an alumnus. Aziz Sancar, who graduated from UTD with a degree in molecular and cell biology in 1977 and is currently a member of the biochemistry department at the University of North Carolina, was part of a team that was awarded the Nobel Prize in chemistry on Oct. 7. The group’s work focused on how DNA is mended by a process called nucleotide excision repair. Their research found that cells continuously repair damaged DNA from carcinogens like UV radiation. This finding, which has potential applications for cancer treatments, disproves the notion scientists have maintained for years that DNA is an extremely stable molecule. “They’re also important in cancer treatment because many of the anti-cancer drugs do damage DNA and whether cancer cells can repair it or not could influence how cancer is treated,” Sancar said in an interview with nobelprize.org. During his time at UTD, Sancar made an immediate impact on the school’s then relatively new chemistry department. Claud Rupert, Sancar’s Ph.D. advisor, said the student displayed a tremendous work ethic. “I’d say, conservatively, he worked 90 hours a week,” he said. “He came in here and nothing else existed but his work. If he wasn’t in the laboratory, he was in the library reading journals.” Sancar, who received his M.D. from Istanbul University in Turkey in 1969, is also the first person from that country to receive a Nobel Prize in science. Stephen Spiro, the head of the Department of Biological Sciences, said his own work as a Ph.D. student was influenced by Sancar. “Back in the 1980s, one thing that molecular biologists spent a long time trying to do — and in fact what Aziz did here — was to isolate genes, to purify a piece of DNA that has on it a particular gene that encodes some particular protein,” he said. “He did that here and it was one of the very early examples of cloning a gene. One of the techniques that he developed while doing that … would allow you to identify the protein that’s encoded on the specific fragment of DNA … I used that technique to actually visualize the protein product made by that cloned gene.” Spiro said Sancar’s work on, which clarifies how proteins in human cells help with DNA repair, is hugely important to understanding the process of how DNA is healed. “That’s something that he discovered,” he said. “That this protein that’s involved in using light energy to repair DNA damage in some organisms, in humans is instead involved in the 24-hour clock.” Although the full term implications of the discovery are not yet known, the impact on UTD has already been felt across campus. “Having an alumnus named as a Nobel laureate shows that UT Dallas has come of age as an institution,” said President Ad Interim Hobson Wildenthal in an email. “For many years, we — and those who closely follow UT Dallas — have known we have outstanding faculty and students, but this recognition clearly validates our quality to a broader national and international audience. This should be a great moment for our campus community to celebrate, and we share this with those who have contributed their time, effort and money to support us and help UT Dallas become an emerging national academic presence.”
SANCAR