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I don't know all the rules about Local Sororities and what they can and cannot get away with. My cousin-in-law and cousin were both in local sororities and fraternities and I remember them talking about hazing (nothing terrible, however enough that if my chapter did it we'd be in trouble for).
At any rate, it's unfortunate that these groups haze, but if they lose members because of their actions then in all reality they deserve it. Furthermore they deserve to be shut down if they don't care to follow most NORMAL panhellenic-type rules (ie. hazing). I cannot recommend what your University needs to do to improve relations, but in all honesty if it's going that badly then perhaps a lot of different National groups should be brought in (in place of the locals).
Hootie
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