Commercial Bank Management
Finance 408/508
Spring Semester 2007

Professor: Dr. Kelly R. Brunarski Office Hours: (tentative, pending committee meeting schedule) Tues & Thurs, 11:30-1:15 and by appointment.  Recommended but not required: e-mail me for an appointment. Class meets Tuesdays & Thursdays: 2-3:15 (in Upham 5) or 3:30-4:45 (in Upham 18). Office Phone: 529-1564 Email: brunarkr@muohio.edu Career Information Webpage: Career Links / Recruiter Information Required readings: 1) Commercial Banking - the Management of Risk by Frasier, Gup and Kolari -3rd edition 2) Report to the Boards of Directors of Allied Irish Banks, P.L.C., Allfirst Financial Inc., and Allfirst Bank Concerning Currency Trading Losses Submitted by Promontory Financial Group and Wachtell, Lipton, Rosen & Katz. Allfirst Discussion Questions 3) SBG Manual (to be purchased by teams mid-semester). Recommended Reading or Required Reading for Graduate credit or if doing the alternative project to the SBG When Genius Failed: The Rise and Fall of Long-Term Capital Management by R. Lowenstein

Winners: SBG Simulation:

2PM Section: Bank 4 (P=$100.3)
3:30 Section: Bank 3 (P=$109.2)

Grades

Other Downloads:

I. Miscellaneous

Syllabus Spring  2007  Exam I Solutions Quiz Solutions II. Lecture notes Lecture note set I (MS Word Format)    (PDF Format) Lecture note set II (MS Word Format) PDF format Allied Irish Banks (Allfirst) slides III. Discussion & Homework Questions  Review Questions for in-class discussion (Chapter 1 - 3) Practice Questions on Underinvestment and Asset Substitution topics  Quiz Review Questions new 3/27/07 Quiz Review Answers new 3/27/07 (correction posted to # 6 solution, 3/29/07) Futures Practice Problems (solutions provided) ISDC Lending Case Study   SWAPS More practice with SWAPS (solutions provided) Spreadsheet on I/O, P/O splits

IV. Stanford Bank Game Simulation Downloads:

SBG input page 1 (handout from class 2/22)

SBG input page 2(handout from class 2/22)

SBG output quarter 1.4

SBG output quarter 2.1(Print this document, even if you received the handout. Not all pages were provided to you in class.)

SBG Tips / Overview (handout from class 2/22)

SBG Overview Questions  (due Tuesday, 3/27- one per group)  

SBG Case Questions

VI. Other links of interest

Project Implicit (Harvard U)

Debit Card Overdraft Fees ($40 for a Big Mac?)

Data (FDIC website): Charter grants / Mergers / Failures 

Article on The Future of Banking 

Article: Basel IA impact on capital requirements

FDIC webpage on CAMEL ratings criteria

WalMart Bank?  

New (3/16/07) Walmart drops plans to acquire bank

Article on on-line banking 

What is a "reverse mortgage"?

Find an interesting on-line article on banking? E-mail the link to me and I will post it here.

VI. Topics and Corresponding Text Chapters

Banking & financial services industries overview	1
Bank Risks / Operational Risk	Allfirst Financial Case
Organizational Structure & Regulation	2
Measuring bank performance / risk ratios / credit risk	3
Stanford Bank Game Simulation	SBG Manual /handouts
Bank Valuation Models	4
Measurement of interest rate risk & Duration	5
Derivatives and Swaps	6 & 14
Commercial lending & management of default risk	7 & Case (to be provided)
Lending for Small Business Succession	Handout
Liquidity Risk / Real estate and consumer lending	9 & 8