«EDUCATION University of WisconsinMadison Major: Finance and Economics Minors: Law and Public Utilities Ph.D. 1955 Major: Finance M.B.A. 1953 Major: ...»
Alan E. Grunewald
Professor of Finance--Michigan State University
University of Wisconsin--Madison
Major: Finance and Economics Minors: Law and Public Utilities Ph.D. 1955
Major: Finance M.B.A. 1953
University of Wisconsin--Milwaukee
Major: Education. Minors: Economics and Sociology B.S. 1949
U.S. Army ROTC 1951 - 1953 U.S. Army Air Corp. – 18 months active duty 1945 – 1946
FOREIGN LANGUAGESSpeak fluent German and some Portuguese and Spanish Studied French and Russian
FOREIGN TRAVEL AND EXPERIENCEExtensive
HONORS, SPECIAL RECOGNITION, RESEARCH FUNDING, AND GRANTS
*Activities such as these enhance the University’s Outreach Programs and stimulate interest in and promote success of the college’s efforts to “grow” its Study Abroad programs in Russia and the transformation of eastern European countries.
CONSULTING EXPERIENCE/CONTACT WITH INDUSTRY AND GOVERNMENT
VARIED AND EXTENSIVEIn the course of my consulting activities extending over many arenas I frequently came in contact with the Bloomberg Financial Services information and data provider. Now that we have “Bloomberg” here it MSU I am able to become truly proficient in its power and use and will be a great help in the research projects being conducted.
CURRENT RESEARCH INTERESTS
2 My research interests throughout my career are largely oriented toward the real world of finance, banking and financial markets and have a decidedly applicable thrust. This is a very timely approach and courses and Masters programs are being developed focusing on applied banking and finance. Involvement with business enterprise is fundamental in this era to provide students with practical experience, enhanced job opportunities and contributions and provides for highly currently relevant research.
My current series of articles dealing with the entry of the Federal Home Loan Banks into the secondary home mortgage market and mortgage backed securities was made possible by my acquaintanceship with Alex Pollock President of the Federal Home Loan Bank of Chicago and developer of the highly successful Mortgage Partnership Finance Program was Senior Vice President at Continental National Bank Chicago and head of the Research Division when I did research there.
1. The rapidly evolving transformation of the Federal Home Loan Banks into major players in the secondary home mortgage market and serious competitors to FNMA and FHLMC. Several of my recent articles trace this significant development in the area of financial institutions and financial markets. Community banks and home owners are initially the major benefactors of these innovative financial arrangements initiated by the Federal Home Loan Bank – Chicago but the major money center banks are also increasingly attracted to the benefits offered by the Federal Home Loan Bank System.
2. The commercial bank credit risk, capital adequacy requirements worldwide first formulated in the 1988 Basal Bank Accord are undergoing revision. These developments are being closely studied and their impact on bank conduct and competition analyzed.
3. The Federal Reserve, after years of effort initiated in 1990 to formulate a general commercial bank interest rate risk, capital adequacy standard (See “Report”, Comment, page 7) abandoned the attempt in favor of several alternative methods from which banks could chose to measure interest rate risk when subject to bank examination. My research in this area extends to the utilization of these various alternative methods of interest rate risk, capital adequacy by different groups of banks and also the introduction of this material into my class material. The efforts of the Federal Reserve were doomed from the start as there is no way to obtain agreement on the maturity of demand deposit accounts, a major component in measuring the size of the maturity gap between assets and liabilities.
4. Russia and the eastern European transfer national countries are eager to accelerate growth and development of their banking system and financial markets. A focal point in this effort is the introduction and utilization of mortgage-backed securities.
A major benefit is the broadening of home ownership which contributes to economic growth and political stability. Through my work in Russia and Berlin I
INSTRUCTIONAL DEVELOPMENTS AND INNOVATIONS
1. Numerous years guest speakers from commercial banking and other areas (investment banking, regulatory agencies, corporate aircraft financing entities (Boeing Capital Corp.) were invited to make presentations to my classes. The purposes of these guest speakers were threefold: to provide students with real world banking perspectives, the opportunity to observe eminently successful role models, and enhanced career opportunities. The Business School exposure to industry and funding is also a benefit.
2. Initiated this year is a joint cooperative effort with the School of Hospitality Business to sponsor speakers of mutual interest to banking students and hospitality enterprise students to broaden their horizons to seek careers outside of their field of specialization. (Banking students may be attracted to the business of banking but prefer to work in the more exciting field of hospitality and entertainment.) The speaker in Spring 2003 was a vice president from the MGM Grand Casino in Detroit. The speaker in Spring 2004 will be from the international division of Bank One to discuss international banking and finance as it relates to hospitality enterprises and the financing and building of hospitality properties. The students benefit from this broader approach and the School of Business benefits through presenting the speaker with a substantial student audience creating considerable goodwill. Shortly after his presentation the speaker from the MGM Grand Casino inquired and pledged to contribute to the School of Business in some capacity.
3. After several years of extensive effort my Management of Financial Institutions (FI
413) and Commercial Banking (FI 878) courses are largely converted to course web page based instructional material. This is particularly true of FI 413. With this methodology reliance on costly text books is reduced, students rapid and easy access to all course material presented in class and class material can be easily kept abreast new developments in this rapidly changing and dynamic field of financial institutions whose business activities and increasingly carried out in the financial market place. The next phase is to append substantial text material for the large number of slides.
4. Re: Item 2. Please see attached pages 14, 15, 16, The Hospitality Business.
5. Having completed placing my graduate and undergraduate classes on the University on line Angel student class material access system my next step is to develop bank 4 simulation models for class room instruction and student motivated self study programs to increase the students’ understanding of the functioning of a bank dedicated to safety and soundness, serving the public and generating revenue and income.
ADMINISTRATIVE EXPERIENCEAssociate Director of the banking program-Michigan State Univ.
1959-1961 Director of the banking program-Michigan State University 1956-1957
GOVERNMENT AND BUSINESS EXPERIENCE
Westcap Corp., Houston, Texas Investment Banking, Research Associate 1990Northwestern State Bank, Asset and Liability Committee - Advisory Board 1988Member
Michigan Bankers Association, Funds Management Committee, Advisor 1980 - 2007 Michigan Bankers Association, Legislative Council, Advisory Member 1980Graduate School of Banking, University of Wisconsin, Madison; Advisor 1980
USAID: Technische Universität Berlin, Berlin, Germany, Advisor and Professor 1957PROFESSIONAL ORGANIZATION POSITIONS Chairperson, Nominating Committee, Midwest Finance Association 1986 - 1987
First Vice President and Program Chairperson, Midwest Finance Association1983-1984 Second Vice President and Membership Chairperson, Midwest Finance Association 1982-1983
Member of the Editorial Council, Management International Review, 1958-1965 Secretary-Treasurer, Management International Review, for the United States 1958-1965
Attend meetings of: American Finance Association; Financial Management Association;
Midwest Finance Association; Federal Reserve Bank of Chicago Market Structure Conference; Academy of Financial Services; Michigan Bankers Association.
"IV Pan American Conference of the Comite' International de l'Organisation Scientifique," Buenos Aires, Argentina, November, 1962. U. S. Delegate.
"Annual Meeting des Verbandes der Hochschullehrer für Betriebswirtschaft," Hamburg, West Germany, May, 1959.
Counseil Europeen du comite' International de l'Organisation Scientifique." West Berlin, October, 1958.
"Deutscher Betriebswirtschafter-Tag," West Berlin, September, 1958.
"Annual Meeting des Verbandes der Hochschullehrer für Betriebswirtschaft," Hamburg, West Germany, May, 1958.
"Fifth International Conference on Management Education," Baden-Baden, Germany, April, 1958.
PROFESSIONAL PROGRAM ACTIVITIESProgram Committee
"Working Capital Management in Advanced Technological Societies," Office of West European Studies, University of Illinois, Champaign 1975 "Public Utilities Management Conference," Michigan State University, East Lansing 1973 Discussant
Managerial Finance: Essentials, 2nd., (St. Paul, West Publishing Co., 1978). With C. O.
Kroncke and E. E. Nemmers.
Programmed Study Guide to accompany Managerial Finance: Essentials, 2nd., 1978.
Instructor's Manual to accompany Managerial Finance: Essentials, 2nd., 1978.
Managerial Finance: Essentials, (St. Paul, West Publishing Co., 1976), With C. O. Kroncke and E. E. Nemmers.
Programmed Study Guide to accompany Managerial Finance: Essentials, 1976.
Instructor's Manual to accompany Managerial Finance: Essentials, 1976.
Basic Managerial Finance. 2nd., (St. Paul, West Publishing Co., 1975), With E.E. Nemmers.
Programmed Study Guide to accompany Basic Managerial Finance, 2nd., 1975.
Instructor's Manual to accompany Basic Managerial Finance, 2nd., 1975.
Basic Managerial Finance, (New York, Holt, Rhinehart and Winston, Inc., 1970. With E. E. Nemmers.
Instructor's Manual to accompany Basic Managerial Finance, 1970.
Stock Valuation in Federal Taxation, Bureau of Business and Economic Research, Michigan State University, East Lansing, Michigan, May, 1961.
Comment (Major Study):
To Federal Reserve Board: On Proposed Rule Making on Revising Risk-based Capital Standards as prescribed by Section 305 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), 1992.
Die Weiterbildung der Management Lehre auf Universitäts-Ebene. Berlin - Grunewald:
Rationalisierungs-Kuratorium der Deutschen Wirtschaft, 1959.
Translation of a Series of Harvard University Management and Finance Cases; Technische Universität Berlin, 1959 (mimeograph).
Investment Policies of Public Pension Funds: Present and Prospective, MFOA, Special Bulletin, June 1, 1957.
Investment Requirements of Public Pension Funds, MFOA, Special Bulletin, January 16, 1957.
“Do We Really, Really, Really Need Bankers???” Michigan Banker, February 2010.
“Liquidity Risk: Your Concept Choice,” Michigan Banker, December 2009.
“Whither the Community Bank!?” Michigan Banker, December 2002.
“What Your Federal Home Loan Bank Can Do for You.” Michigan Banker, June 2002.
“Mortgage Partnership Finance: Getting a Better Deal for Your Bank’s Fixed Rate Mortgages.” Michigan Banker, December 2001.