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
Speak fluent German and some Portuguese and Spanish
Studied French and Russian
FOREIGN TRAVEL AND EXPERIENCE
HONORS, SPECIAL RECOGNITION, RESEARCH FUNDING, AND GRANTS
GRANT – MSU CIBER (Center for International Business and Education Research)
to study the comparative competitive banking arrangements in Germany of US and
German banks located in Germany doing business with firms doing business locally and
internationally, the study to be conducted jointly with a professor banking chair colleague
at the University of Potsdam where I taught numerous times banking in the Summer
Academy; and concurrently to study with a professor, an expert on Africa and a well
known consultant at the Technical University Berlin, as well as a long time acquaintance,
the comparative competitive banking arrangements of US banks with banking facilities in
Africa and African as well of those of other countries doing business in Africa in their
relationships with African firms doing business locally and internationally. 2010
GRANT – GRADUATE SCHOOL OF BANKING – University of Wisconsin,
*Instructor, Commercial Banking, Finance Academy of the
Federation of Russian States, Moscow – Summer Academy 2005
*Instructor, Commercial Banking, University of Potsdam,
Berlin – Summer Academy Professor in 2004, 2005, 2006, 2007, 2008
*Through these activities I was honored with an invitation Moldavia to serve as her
research professor at Michigan State University under a fully funded Fulbright
Editorial Board – Journal of Research in Finance 1998-2001
Phi Kappa Phi National Honor Society 1992
Westcap Corp., Houston, Texas 1990-1992
Continental Bank, Chicago 1983-1988
Graduate School of Banking, University of Wisconsin-Madison Lecturer 1980
Graduate School of Banking, University of Wisconsin-Madison Instructor 1980 - 1983
Advisor to Bank Simulation Program 1984
Professor for a Day, University of Missouri 1964
Finance Forum Fellowship, Joint Committee on Education, New York City 1956
Alpha Kappa Psi, Business Fraternity 1955
Beta Alpha Psi, National Honorary Accounting Fraternity 1955
Beta Gamma Sigma, National Honorary Business Fraternity 1955
Kemper K. Knapp Graduate Fellowship, University of Wisconsin 1954
*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 EXTENSIVE
In 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
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
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
have revived my interest in mortgage backed securities and made this area a
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
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.
Finance Academy of the Federation of Russian States,
Moscow – Summer Academy 2005
University of Potsdam/Berlin – Summer Academy 2004, 2005, 2006, 2007, 2008
Michigan State University y 1964-
Graduate School of Banking, University of Wisconsin--Madison 1977-79
Universidade do Rio Grande do Sul
Michigan State University 1959-61
Technische Universität Berlin - Berlin
Michigan State University 1954-57
University of Wisconsin--Madison 195l-54
Associate Director of the banking program-Michigan State Univ.
Director of the banking program-Michigan State University
GOVERNMENT AND BUSINESS EXPERIENCE
Robert Morris Commercial Bank Loan Officers Association - Michigan,
Banking School, Director 1994-1996
Westcap Corp., Houston, Texas Investment Banking, Research Associate
Northwestern State Bank, Asset and Liability Committee - Advisory Board
Grant State Bank, Grant, Michigan, Director
Chemical Bank Montcalm, subsidiary bank of Chemical Financial Corp.,
Midland, Michigan, Director 1983-1997
Continental Illinois National Bank and Trust Company, Continental
Illinois Corp., Chicago, Illinois, Research Associate 1983 - 1987
Chemical Bank, South, Central, Albion, subsidiary bank of Chemical Financial Corp.,
Midland, Michigan, Director 1980 - 1983
Michigan Bankers Association, Funds Management Committee, Advisor 1980 - 2007
Michigan Bankers Association, Legislative Council, Advisory Member
Graduate School of Banking, University of Wisconsin, Madison; Advisor 1980
Northern National Bank, Grayling, Michigan, Director
USAID: Universidade do Rio Grande do Sul, Porto Alegre, Brazil,
Advisor and Professor
USAID: Technische Universität Berlin, Berlin, Germany, Advisor and Professor
PROFESSIONAL ORGANIZATION POSITIONS
Chairperson, Nominating Committee, Midwest Finance Association 1986 -
President, Midwest Finance Association 1985 - 1986
President Elect, Midwest Finance Association 1984 - 1985
First Vice President and Program Chairperson, Midwest Finance Association
Second Vice President and Membership Chairperson, Midwest Finance Association
Director, Midwest Finance Association 1977-1980
Member of the Editorial Council, Management International Review, 1958-1965
Secretary-Treasurer, Management International Review, for the United States
CONTACTS WITH PROFESSIONAL ORGANIZATIONS OVER THE YEARS
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,
"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,
PROFESSIONAL PROGRAM ACTIVITIES
Midwest Finance Association 1985-86,1989,1992-94
Financial Management Association
Midwest Finance Association 1977, 1979, 1980, 1981, 1983, 1984,
Federal Reserve Bank of Chicago Market Structure Conference 1976, 1978, 1979,
Financial Management Association 1979,
Illinois Economic Association, Chicago 1983
Michigan Association of Community Bankers
Michigan Bankers Association
Western Finance Association
Southern Finance Association
University of Florida, Gainesville
"IV Pan American Conference of the Comite' International de l'Organisation
Buenos Aires, Argentina
Michigan Bankers Association - Funds Management Program 2000
Financial Management Association 1972, 1988, 1989, 1990, 1992-1994,
Midwest Finance Association 1972, 1973, 1976, 1985, 1990,
"Working Capital Management in Advanced Technological Societies," Office
of West European Studies, University of Illinois, Champaign
"Public Utilities Management Conference," Michigan State University, East Lansing
Midwest Finance Association 1969, 1975, 1983, 1987,
Financial Management Association 1971, 1978, 1986,
Southern Finance Association 1972
Farm Research Management Conference, Chicago 1969
Attend Federal Reserve Bank of Chicago Conferences regularly each spring.
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.
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,
“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.
“Has Traditional Local Banking Died?” Michigan Banker, July 2001.
“Banking Law Updates Pique MSU Professor Alan Grunewald’s Interest in Finance”
Michigan Banker, July 2000.
“How Long De Novos Can Remain Competitive is An Open Question”, Michigan Banker,
“Risk in Banking – Do We Know What it Means?”. Michigan Banker. April 1. 1999, pg.
“To the Community Bank CEO Interested in Long Secure Tenure: Ways to Keep the Bank
Independent”, Michigan Banker, April 1998, pg. 54.
“Section 20 Subsidiaries of BHCs Helpful to Community Banks”, Michigan Banker: 1997
Michigan Banking Holding Company Directory and Yearbook, May 1997.
“Another Viewpoint on Continuing CU Squabble”, Michigan Banker, March 1997.
“It Seems Like a Stretch, But There’s a Genuine Connection Between the Eurpoean
Monetary Union and Commercial Banks Here”, Michigan Banker, December 1996.
“Fed’s Attempt to Develop a Standardized Supervisory Measure of Interest Rate Risk Has
Been Abandoned”, Michigan Banker, November 1996.
“Explosive Growth of Derivatives’ Suggests an Emerging Revenue Source for Banks of All
Sizes”, Michigan Banker, October 1996.
“Repeal of Glass-Steagall Act Would Permit All Forms of Banking Organizations to Enter
Securities Business”, Michigan Banker, July 1996.
“Is There Growing Sentiment, Finally, for the Repeal of the Glass-Steagall Act?”
Michigan Banker, April, 1996.
"Shift to Interest Rate Risk is Making Regulators Edgy", Bank Management, October
"Bank Investment Managers Are Always Looking at Relative Values", Michigan Banker,
"Managing Interest Rate Risk: Do Risk Measures Exaggerate?" Bank Management,
"Mortgage-Backed Securities; Par, Discount, Premium - Which to Buy?",
Bank Management, March 1991.
"Banks Show Increasing Interest in Mortgage-Backed Securities," Michigan Banker,
"Financial Models Work Well at Heart of A/L Programs," Bank Management, October
"Mortgage Securities: The Risk and the Return," Michigan Banker, December 1989.
"Bank Acquisition and Stockholder Wealth", The Review of Research in Banking and
Finance, Fall 1988. With R. Cox.
"Glass-Steagall Revisited-Again", Journal of Business & Society, Spring, 1987. Invited
"Toward a Theory of Money Center Bank Liquidity," The Magazine of Bank
Administration, June, l985. With Alex J. Pollock.
“Money Managers and Bank Liquidity”, Proceedings, Federal Reserve Bank of Chicago
Market Structure Confernece, May 1985, with Alex Pollock, reviewed in American
Banker, Sanford Rose, July 16, 1985, p. 1.
"Money Managers and Bank Liquidity," Proceedings, Federal Reserve Bank of Chicago
Market Structure Conference, May, 1985. With Alex J. Pollock.
_____________________________, Journal of the Midwest Finance Association,
"Bank Directors' Liability for Negligence and the Business Judgment Rule," Michigan
Financial Institutions Reporter, March/April, 1983. With Richard B. Foster.
"The Economic Necessity for Interstate Banking," Proceedings, Federal Reserve Bank of
Chicago Market Structure Conference, 1979. Reprinted in Paul A. Meyer, Monetary
Economics and Financial Markets, Richard D. Irvin, Inc., Homewood, IL, 1982.
"Bank Director Liability Post-FIRA How to Avoid It," Banking Law Journal, June 1981.
With Bruce P. Golden.
"Bank Holding Companies: Vehicles for Acquisition and Financing," Michigan Bank
Counsel Reporter, June, 1980.
"Loans to Insiders and Correspondent Accounts After the Financial Institutions
Regulatory and Interest Control Act," Michigan Bank Counsel Reporter, February, 1980.
____________________________, Michigan Bank Counsel Reporter, August 1979.
“Economic Necessity for Interstate Banking”, Journal of the Midwest Finance
Association, December, 1979.
"Bank Size, Asset Growth, and Problems of Capital Adequacy," Abstract of Research in
Progress, Proceedings, Federal Reserve Bank of Chicago, Market Structure Conference,
"The Economic Necessity and Argument for Interstate Banking," Abstract of Research in
Progress, Proceedings, Federal Reserve Bank of Chicago Market Structure Conference,
"Commercial Banking as a Distinct Line at Commerce," Wayne Law Review, March,
"Commercial Banking as a Distinct Line of Commerce," Abstract of Research in Progress,
Proceedings, Federal Reserve Bank of Chicago Market Structure Conference, 1976.
"A Glimpse of Financial Regulation in Michigan," Michigan State Economic Record,
January-February, 1975. With R. J. Francis.
"Bank Growth Through Merger: The Price May Be Too High," Business Topics, Summer,
"Branch Banking in Michigan," Wayne Law Review, Spring, 1973. With H. Wein.
"If You Believe Growth Is Dead, Try Formula Timing Plans", Business Topics, 20
(Summer, 1972), pp. 59-65. With R. Klemkosky. Reprinted in Readings in Security
Analysis and Portfolio Management, Houghton, Mifflin Co., 1972. Reprinted in the
Dartnell Financial Executive's Service, 1972.
Return on Investment Multipliers," Management International Review, 1972/2-3,
pp. 57-68, With T. Sullivan.
"Using the Computer in Investment Analysis," Investment Seminar, University of Florida,
"Computer Assisted Investment Analysis," Business Topics, Spring, 1967, pp. 11-19.
"Capital Budgeting Strategy," Management International Vols. 2-3, 1967, pp. 109-130.
"A Comparison of the Financial Statements of German and American Industrial Firms,"
American Business Law Journal, Fall 1964. With Professor Hartmann, Technische
"Operationale Plannung in der Unternehmung," Zeitschrift für Betriebswirtschaft,
February, 1964, pp. 88-101.
"Planejamento Financeiro e Determinacao do Lucre," Revista de Administraçao de
Empresas, October-December, 1963, Vol. 3.
"Planejamento do Inversoes de Capital," Revista, May-August, 1963, Vol. 3, No. 7, p. 97.
"Sociedade ou Empresa: Quem nae se adapta e evelui - Perece," Orientaçao, January,
1963, pp. 12-15.
"The International Exchange of Business Research," Journal of the Academy of
Management, August, 1961.
"The Revival of the Universal Banking System in West Germany, Commercial and
Financial Chronicle, July 27, 1961.
"Management Education in Ferment," Management International, June, 1961.
"Die Wiedergeburt der deutschen Filialgroszbanken," Zeitschrift für Betriebswirtschaft,
"Survival Consideration in Management Development Programs, Journal of the American
Society of Training Directors, April, 1961.
"West German Stock Investment," The Financial Analysts Journal, September-October,
1960, pp. 35-38.
"Small Business in America,"Zeitschrift für Betriebswirtschaft, August, 1959.
"Eininge Erfahrungen in der Besteuerung von Gratisaktien," Der Betrieb, August 26,
"Das Betriebswirtschaftliche Studium," Zeitschrift für Betriebswirtschaft, January, 1959.
“Das Studium der Betriebswirtschaftslehre in den Vereinigten Staaten”, Zeitschrift für
Betriebswirtschaft, Sonderdruck, Kleine Beiträge, als Professor an der Technischen
Universität Berlin, 1958.
"Assets and Earnings as Bases of Taxable Value," Tax Law Review, November, 1957.
Reprinted: The Monthly Digest of Tax Articles, April, 1958.
"Stock is Worth What You Can Get Out of It," Security Analysts Journal, November,
"Valuation of Closely Held Industrial Shares for Federal Tax Purposes" (Thesis Abstract),
Journal of Finance, September, 1956.
"Section 306 Stock - A New Concept," Business Topics, March, 1956.
"An Old Formula in New Attire," Tax Law Review, January, 1956.
"Budgeting for a Better Program." American Nurses Association Conference Bulletin,
"Business Finance," by W. A. Wolf and L. Richardson Journal of Finance, March, 1967,
"Money of Their Own: The Great Counterfeiters," M. T. Bloom, Journal of Finance,
"The Estate Tax," J. B. Lewis, Journal of Finance, December, 1957.
"Fiscal Year Reporting for Corporate Income Tax," W. L. Crum, Journal of Accountancy,
"Appraisal and Management of Securities," D. Hayes, American Economic Review, June
Journal Article Reviewer:
Journal of Banking Research
Journal of Applied Business Research
Consultant to the United States and foreign governments and to financial institutions.
Conducted seminars on the management of short-term funds for treasurers of
Speaker: Directors' Seminars, Bank Funds Management Programs, Bank Management
Programs, Chamber of Commerce Programs
Travel widely: Europe, North Africa, and Southeast Asia, China, Japan and including
India, Nepal and Caribbean. Meet with businessmen, professors and students.
Captain, Civil Air Patrol, ret.
Private pilot (current).
Private pilot medical certificate (current).
FCC Extra Class Amateur Radio License - AA8YS.