University of Chicago professor wins Nobel Prize

CHICAGO - A University of Chicago professor won the Nobel Prize in economic sciences, along with two others.

Professor Douglas Diamond has a very impressive list of titles and accomplishments, including being a distinguished Professor of Finance at the University of Chicago’s Booth School of Business. But when he got a call early Monday, he couldn't quite believe his new achievement.

"I heard this Swedish voice on the phone saying Professor Diamond, I'm from the Nobel Committee. And then I was like, wow, that's a big deal. And no one has ever pranked me on this, but I know other people who have got prank calls," said Professor Douglas Diamond.

It was not a prank, so Diamond was soon posing for pictures and doing interviews to talk about his win.

SUBSCRIBE TO FOX 32 CHICAGO ON YOUTUBE

Diamond won alongside former Federal Reserve Chair Ben Bernanke and another economist, Philip H. Dybvig. The Nobel panel at the Royal Swedish Academy of Sciences in Stockholm said the trio’s research had shown "why avoiding bank collapses is vital."

The Nobel panel also said their findings in the early 1980s laid the foundations for regulating financial markets.

With markets again causing anxiety, during high inflation and rising interest rates, the work remains relevant. Diamond says today's financial system is "much, much less vulnerable" because of memories of the 2000s collapse and improved regulation.

"Financial crises are a big deal in the world, and they're maybe relevant in the recent past and hopefully not in the near future. So, I wasn't shocked that this area got acknowledged, but I was happy and surprised," he said.

Diamond has company at the University of Chicago. He's the 95th scholar associated with the school to receive a Nobel Prize.