Seidman was appointed as FDIC chairman in 1985 by former President Ronald Reagan and served until 1991. He helped to lead the nation out of the savings and loan crisis by working to convince Congress to create the Resolution Trust Corporation, which sold lenders' assets at reasonable prices.
"It was a very similar situation to what we have now," Tom Seidman said in an interview with The Dartmouth. "The banks held real estate assets that were overvalued, and the banks needed to get rid of them to remain solvent."
The Resolution Trust Corporation was "formed to deal with the toxic assets of the failed savings and loan institutions at that time," Tom Seidman said.
Seidman was widely praised for his work during the economic crisis of the 1980s, Dartmouth economics professor Bruce Sacerdote said in an interview.
"This was thought to be one of the most brilliant, effective things done in government in decades," Sacerdote said.
The former FDIC chairman went on to predict the current economic crisis, his son said.
"He definitely had been giving some warnings that things were out of balance," Tom Seidman said. "He spoke publicly frequently during his television appearances on CNBC."
Government officials often consulted with Seidman about the current crisis, Sacerdote said.
"People talked about bringing him in to work on the current problem," Sacerdote said. "Several people sought his advice. It's hard to know if the Resolution Trust Corporation approach would work today. I don't think we'd be able to do exactly what Seidman did in 1989 and 1990, but it's a good model."
Seidman, though, was optimistic about the current administration's ability to solve the current economic crisis, his son said.
"He felt that we would get through it," he said. "He thought there were lessons to be learned from the financial crisis that he was involved in."
Seidman was known throughout political circles in Washington, D.C., for his sense of humor, according to his son.
"There are several quotes of his that are legendary at this point," Tom Seidman said. "When the banks wanted you to open an account in the past, they offered you a premium, like a toaster. He said a new proposal [suggesting that the government charge insurance depositors higher rates] was like opening an account at the bank and then giving the bank your toaster."
Seidman was born in Grand Rapids, Mich., on April 29, 1921. His father, Frank, was an accountant while his mother, Ester, stayed at home to raise their family.
Seidman's time at Dartmouth was interrupted by World War II. He served on a destroyer in the Navy for two years and was later awarded a Bronze Star, according to his son.
"He told me that he got on the destroyer in Boston and didn't set foot on land for another two years," he said.
Seidman earned his law degree from Harvard Law School. He never practiced law, however, and eventually received an M.B.A. from the University of Michigan. He went on to work as an accountant for his family's accounting firm, Seidman and Seidman.
"He took away that he didn't like accounting," Tom Seidman said. "He was not very fond of the actual mechanics, so he got into management of the firm."
Seidman later spearheaded the founding of Grand Valley State University in western Michigan in 1960. He considered the university to be his greatest accomplishment, his son said.
"There was no public university in the western part of Michigan where he was brought up," he said. "He felt that there should be a public institute of higher learning."
Although Grand Valley State University was founded as a college, it soon became a university. It now has almost 24,000 students.
Seidman was also responsible for starting The Washington Campus program, which brings graduate students to Washington, D.C., to teach them about the interaction between government and business.
After Seidman left the FDIC in 1991, he became involved with a variety of news media outlets and went on to serve as chief financial commentator for CNBC. Seidman was also the publisher of Bank Director, a quarterly magazine for leaders of financial companies.
He appeared on CNBC up until two weeks before his death.
Seidman is survived by his wife, Sally, six children, 11 grandchildren and one great-grandchild. His daughter, journalist Nancy Caroline Seidman, is currently writing his biography.
