Sunday, October 31, 2010

Things are looking up for the U.S. economy - according to the AIM student survey

This past week the students in the AIM program submitted their detailed forecast for the U.S. economy in 2011. Dr. David Krause, AIM program director writes, "Even though this week has significant events (election day on Tuesday, the highly anticipated 2nd round of Federal Reserve quantitative easing (QE2) announcement on Wednesday, and the release of the October employment report on Friday), it appears to the students in the AIM program that the U.S. economy will be rebounding a bit more strongly than consensus estimates. The the tone of the current U.S. Senate and House campaigns has been negative and highly critical of the bailouts and stimulus spending - with many people claiming these are a failure. Overall, it appears that this assumption could be wrong and that the bailouts and stimulus will propel the U.S. economy forward in 2011. According to the AIM students, the climate will be improved in 2011 (especially with gridlock between the executive and legislative branches of the government) and growth for the U.S. economy will likely surpass the consensus economic estimates for 2011."

He continued, "Over the past couple of years, I've told my students and others to watch the Case-Shiller housing price index and when it bottoms out this will be a favorable indicator for the recovery of the U.S. economy. This past week the composite August Case-Shiller monthly index (a 3 month average of June, July and August, which is shown to the right) was released. And while the index showed that housing prices are off 29.2% from the peak, it also shows that nationally housing prices have plateaued. While many economists are predicting that housing prices will continue to weaken more in 2011, the AIM students are forecasting a positive increase in residential investment."

GDP Growth Rate "Real gross domestic product (the output of goods and services produced by the U.S. economy) increased at an annual rate of 2.0% in the third quarter of 2010," according to Krause. "This 'advanced' estimate was released by the Bureau of Economic Analysis on Friday.The GDP growth rate of 2% is well below the 3% average for the last 30 years; however, prospects for 2011 according to economists are 3%. The AIM students, on average, are looking for 2011 GDP growth rates to improve throughout the year and to be in excess of 3.5% by the fourth quarter of 2011. The thought is that the stimulus and bailouts will have a far more favorable impact than most economists and politicians have been predicting. The students feel that U.S. exports will be stronger than expected because of the weaker U.S. Dollar and business investments will lead the economy in 2011. Additionally, auto sales and other final sales - led by a slight improvement in consumer demand - will surprise many economists and pundits on the upside."

"This past week the regional Fed manufacturing survey showed "moderate" expansion in October (blue line). The graph on the right is from Calculated Risk and includes the average of the New York and Philly Fed surveys - and other Fed districts (green line). The Institute for Supply Management's (ISM) Purchasing Managers Index (red) is also shown. The  graph and the Index of Leading Indicators (not shown) are suggesting that the threat of a double dip recession has passed and that expansion is likely in 2011," said Dr. Krause.

"Other indicators point toward improving conditions for the consumer in the U.S. Driven by improving same-store sales and higher levels of customer traffic, the level of optimism among restaurant operators - and their 2011 outlook - have improved. The National Restaurant Association’s Restaurant Performance Index – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – was over 100 the past month which signifies expansion in this leading consumer sentiment indicator," commented Krause.

"The AIM student macro-economic and interest rate forecasts are used to set the strategy for the AIM Fixed Income Fund," Dr. Krause added. "This week the students will adjust their fixed income portfolio based on their 3- and 6-month economic forecasts. In an upcoming blog we will summarize their fixed income investment strategy and underlying assumptions. As you can tell from the comments above, the consensus of the AIM students is for a stronger economy in 2011."


Saturday, October 30, 2010

Four Marquette Alumni and Leaders of Innovative Financial Firms Talked About Current Investment Trends at NYC Circles Event

On October 19, a financial panel discussion was held at the Hearst Tower in New York at the Marquette University Circles event. The discussion title was "Beyond the financial crisis – Leaders from innovative investment firms talk about modern investment trends." Dr. Krause, AIM program director, and four Marquette alumni discussed the topic before a group of about 80 guests.

The participants were:
• Steve Czech, Bus Ad ’86, Managing Director and Portfolio Manager, FrontPoint Partners

• Scott Schroeder, Bus Ad ’92, Law ’96, Grad ’96, Co-founding Partner, Balyasny Asset Mngt.

• Ben Somers, Bus Ad ’98, Principal, Head of Business Development, Elementum Advisors

Jim Bianco, Bus Ad '84, President of Bianco Research

The topics of discussion ranged from federal reserve policy to emerging markets to financial regulation to the potential currency wars. Each of the panelists discussed various issues and interacted with the audience during the Q&A period.

Steve Czech
FrontPoint Partners is led by Steve Czech, who manages a direct lending strategy dedicated to originating and investing in secured loans to small and mid-sized businesses primarily in the United States. Mr. Czech's is based in FrontPoint’s Greenwich, Connecticut office.

Scott Schroeder
Balyasny Asset Management (or BAM) is a market neutral global equity hedge fund with offices in Chicago, Hong Kong, Mumbai, and New York. Scott Schroeder is a founding partner at BAM. During their visit to New York, the Marquette finance students were able to visit Balyasny Asset Management as Scott's guests. Dr. Krause said, "It was an excellent visit - we were able to meet many of Scott's colleagues and they also allowed us to be their during the opening of the stock market. It was a super-charged environment. The students were very impressed and thankful for the opportunity to visit BAM."

Ben Somers
Elementum Advisors is an independent alternative investment manager specializing in collateralized natural event reinsurance investments. It possesses a lengthy performance track record and experience managing portfolios across a range of objectives - from liquid catastrophe bond to high alpha direct reinsurance strategies. involved in the process of offering the clients with high returns on their investments. Ben Somers is a Principal and Head of Business Development and Investor Relations at Elementum. He is located in New York, while operations for Elementum Advisors function in their Chicago office.

Jim Bianco
Jim Bianco is the President of Bianco Research, which produces unique and original insights into movements in the financial markets on a daily basis. Bianco Research is located in Chicago and specializes in the analysis of federal reserve policy and interest rates. Jim has been a featured speaker at many investment conferences and is regularly featured on CNBC, CNN, Bloomberg and Fox Business News.

Dr. David Krause
Marquette University CIRCLES is an innovative business networking program that connects Marquette alumni, parents and friends. The New York Circles event was attended by more than 300 people - including 12 Marquette finance majors and Dr. Krause who visited New York during their fall break.  Dr. Krause moderated the event.

Remaining AIM Equity Presentation Schedule for the Fall 2010 Semester

The semester is moving along rapidly and there are only three more sets of AIM equity presentations remaining for the Fall 2010 Semester. The following list contains the dates and times of the scheduled presentations: 

  • Thursday, 11/11/2010 - AIM Investment Advisory Meeting (5:00 – 8:00 PM) Location: AIM Room, Marquette College of Business Administration (4th floor)
  • Friday, 11/12/2010 - AIM Investment Advisory “Chicago Road Show” Meeting (11:00 AM – 1:00 PM) Location: CCS Learning Center, Chicago
  • Thursday, 12/3/2010 - AIM Investment Advisory Meeting “Geneva Road Show” (2:00 – 3:30 PM) Location: Geneva Capital Management, Milwaukee
The students enrolled in the AIM program gain valuable experience by managing a portion of the University’s endowment fund. Currently there are two equity funds (small cap and international) and a fixed income fund managed by the students – the portfolios have a combined market value of about $1.8 million.

The AIM Fund student managers must meet the same basic policies and performance guidelines as required of the other money managers hired to invest Marquette University’s endowment funds. In keeping with these requirements, the student managers seek to achieve excess rates of return for the three funds, while assuming risks similar to those of the Russell 2000, S&P ADR, and the Barclays Aggregate Bond Indexes, respectively. The AIM equity funds are sector neutral – with each student responsible for managing the stocks within a specific sector. As a result, because the portfolios are broadly diversified across industries and regions, the students are able to focus on investing in well-managed, profitable businesses – which avoids exposing the University’s funds to imprudent economic or industry risks.

The investment professionals, alumni, and faculty that attend the meetings serve as an unofficial investment advisory board to the students.  The meeting attendees are free to ask questions during the presentations and to provide commentary – which further enhances the applied learning experiences of the AIM students. The students have the sole discretion of which investments to add or remove from the portfolios; however, their actions must be in compliance with the AIM Investment Policy Statement.  The AIM funds are rebalanced in a timely manner and the students continuously monitor the funds during the school year.  The AIM Director oversees the student activities and works closely with the investment management community.

We appreciate your support and welcome you to attend the regularly scheduled AIM Fund Investment Advisory meetings either in person or via web conferencing.  The remaining schedule is presented above. For additional information, please contact: Dr. David Krause, AIM Director, 414 288-1457, or his assistant, Lee Hovorka, 414 288-8024,

Thursday, October 28, 2010

Everett Schenk, BNP Paribas' CEO-North America, Met with Marquette's Finance Students Last Week in New York

Everett Schenk, BNP Paribas' CEO-North America, discussed the outlook for his business with CNBC's Maria Bartiromo today. The Marquette finance students travelling to New York last week had the opportunity to spend 30 minutes of Q&A time with Mr. Schenk.

Dr. David Krause, AIM program director commented, "The students really enjoyed the dialogue with Mr. Schenk and appreciate the efforts of Rick Broeren and Claire Cerni to arrange the event. The trip to BNP last Friday was among the highlights of the NYC trip. They all commented about the upbeat atmosphere at BNP - much of which is a direct function of the positive personality of Mr. Schenk."

Watch his interview below:

Everett Schenk, BNP CEO

Dr. Krause and Chris McGuire Discuss Hedge Funds at Circles Event in Chicago

On October 27, Dr. David Krause (AIM program director) and Chris McGuire (Founder and Chief Investment Officer of Phalanx Capital Management) hosted a breakout session at Marquette University's Circles event in Chicago. Dr. Krause and Chris met in an informal setting with more than 30 Marquette alumni at the annual networking event held at the Union League Club in downtown Chicago. The entire event was sold out with more than 300 Marquette alumni in attendance.

Chris McGuire

Dr. Krause and Chris McGuire discussed hedge funds in general terms and commented on the trends in the current investment market. While the discussion was general in nature, they did have an opportunity to talk specifically about how financial regulations were impacting individual hedge funds, including Chris' firm. Phalanx Capital Management is an Asian Volatility Multi-Strategy Fund with offices in Chicago and Hong Kong. The fund was named "Best Multi-Strategy Hedge Fund Award 2009" by AsiaHedge.

Following the general discussion of hedge funds, Dr. Krause opened the floor up to questions from the audience. At least 10 questions were fielded by McGuire and Krause before the session ended. Dr. Krause said, "It was a good gathering. The attendees to the breakout session asked excellent questions. If the purpose of the Circles event is to bring Marquette alumni together with similar interests in a networking environment - then the evening was a success. It was also nice to catchup with former AIM and other students I've had the pleasure of teaching at Marquette."

Dr. Krause Visits BMO Capital Markets in Chicago

On Wednesday, October 27, Dr. David Krause (AIM program director) visited BMO Capital Markets while in Chicago for the Marquette Circles event. He met with Dave Kucera (MU '84), Managing Director / Head of US Securitization Group. They had a productive and wide-ranging discussion about the AIM program, BMO, macro-economic conditions, and the status of the securitization markets.

Dave Kucera
BMO Capital Markets is a North American financial services provider that offers corporate, institutional and government clients access to a complete range of products and services. These include equity and debt underwriting, corporate lending and project financing, merger and acquisitions advisory services, merchant banking, securitization, treasury management, market risk management, debt and equity research and institutional sales and trading.

BMO's Securitization Group creates liquidity for previously illiquid assets (auto loans, student loans, etc.) at a lower cost than most traditional financing instruments. Virtually any monetary asset with a contractual payment flow can be securitized. This allows capital to be raised by companies with contractually committed future cash flows, such as royalties or other non-executory contracts. BMO can, in turn, provide investors with almost any level of risk, from AAA to non-investment grade. Dave Kucera and his Chicago-based team publish a monthly securitization newsletter.

Dr. Krause said, "It was a pleasure to sit down with Dave and talk about securitizations in the post-financial crisis era. As his most recent newsletter shows, ABS issuance is still occurring and currently is being led by auto loans. Given some of the actions of the federal government to support the securitization market, the yield spreads of AAA, 3-year ABS loans is at levels below that observed in the pre-Lehman period. It looks as if improving credit quality and a limited supply of ABS is steering investors toward lower tranched assets in order to obtain higher yields."

He continued, "It was an excellent meeting and I look forward to bringing Marquette finance students to BMO for a visit with Dave and his team. We also are interested in viewing their trading floor the next time we visit Chicago."

Wednesday, October 27, 2010

Marquette Finance Students Visited J.P. Morgan During Their New York Trip

During their annual fall trip to New York, 28 students and Dr. David Krause, AIM program director, had the opportunity to visit JP Morgan. Thanks to the efforts of Marquette alumni, Ryan Loftus and Caitlin Gerdes, the finance students were able to meet with three J.P. Morgan professionals. Throughout the country, numerous Marquette alumni are working for JPM.
Ryan Loftus (MU ’00), an Executive Director in JPM’s Financial Institutions Group / Corporate Finance Advisory, talked about his role within the investment banking function. Ryan gave the students an appreciation of the traits and skill sets required to succeed in investment banking on Wall Street. He answered student questions and gave them his views about the current trends within the financial services industry.  

The next JPM presenter was Megan McClellan. She is a Vice President in J.P. Morgan’s Private Wealth Management Group and specializes in fixed income investments. Megan previously worked in the area of mortgage-backed securities in the sales & trading function. She gave the students an appreciation of the role of the asset management specialist in PWM. The students had an interesting dialogue with Ms. McClellan following her presentation.

The last presenter was Jeremiah Norton, who works with Ryan Loftus in investment banking at J.P. Morgan. Prior to joining JPM, he served at the U.S. Treasury Department under Secretary Henry Paulson during the financial crisis of 2007-08. Jeremiah’s role at Treasury provided some very interesting dialogue with the students - many of whom had read Andrew Sorkin’s book, Too Big To Fail. Following Mr. Norton’s presentation the students had an opportunity to visit the former Bear Sterns board room where many historic decisions were made during the financial crisis.
Dr. David Krause said, “The visit to J.P. Morgan was an opportunity to meet with three very interesting and experienced financial professionals. I know that the students on the New York trip enjoyed hearing the ‘day in the life of an investment banker’ stories when they talked with Ryan. Meg provided some interesting perspectives about the role of a fixed income specialist in the private wealth management functional area. And Jeremiah’s stories about the financial crisis kept the students in rapture – it was an insider’s view of the events surrounding the final days of Bear Sterns and Lehman Brothers that few people have heard. It was a great visit and we are thankful for the opportunity to visit JPM.”  

Tuesday, October 26, 2010

Marquette University's Chicago Alumni 'Circles' Event on Wednesday, October 27th

The Marquette University CIRCLES event in Chicago will be held on Wednesday, October 27th at the Union League Club of Chicago, 65 West Jackson Boulevard, Chicago, IL, (312) 427-7800. Here's the scheduled events: 

5:00 p.m. - REGISTRATION

5:45 p.m. - WELCOME

6:00 p.m. - 12 ROUND TABLE DISCUSSIONS. Including:

6:45 p.m. - NETWORKING. Meet and network with Marquette alumni, parents and friends connected to your industry.

New College of Business Administration and AIM Web Sites Launched Today

The new College of Business Administration web site is up and running. The web address is:

The new AIM web site is located at:

Changes and edits will be made as bugs are detected; however, we are pleased with the new site and look forward to adding many more links and features.

The AIM Blog is located at:

And the AIM Twitter can be accessed at:

Buzz Williams and AIM

Buzz Williams
Hearst Twoer
Dr. David Krause, AIM program director said, "On our trip to New York last week the students and I were on the same flight as Buzz Williams - Marquette men's basketball coach. He was headed to NYC for the Big East media day and also because he was the featured guest at the Marquette Circles event in New York City at the Hearst Tower. We had a great conversation about the similarities between the MU basketball team and the Applied Investment Management program." 

Dr. David Krause
Dr. Krause continued, "I told Buzz that I had read the Journal-Sentinel interview with him on media day (note: to access the full transcript of the interview, go to: and that I could relate to the 'us versus them' attitude that exists. It seems to some that Marquette doesn't get the same respect in the Big East as many of the East Coast schools - and I said that we encounter the same attitude when our students compete for jobs on Wall Street versus students from East Coast 'target' schools. We both concluded that we needed to outwork our competition, stop complaining, and lead the league in floor burns."


"It was an interesting conversation that we had and one which highlighted the fact that we need to earn respect," Krause added. "Buzz's MU Circles interview before several hundred MU alumni last week was fun to attend - he had some interesting call-outs to various people in the audience, including the finance students traveling with me to New York. This should be an interesting team to watch this year and I feel a special bond now exists between us - as we both face the David v. Goliath East Coast syndrome. Let's hope we both generate the same results as David. Good luck to Buzz and the team! Go Marquette...."     

Back From NYC Trip: AIM Students Get Back to Work

The New York City trip during the fall break was successful. Dr. Krause, AIM program director, and about 30 Marquette University finance students visited 9 financial firms during the annual trip to NYC. Dr. Krause said, "I was an exhausting 5 days. I am hopeful that the students learned as much as I did. We were very fortunate to have had the opportunity to meet with many high level executives of the world's leading financial institutions. For me personally, this was the best trip to New York yet and I hope the students appreciate the efforts of our NYC alumni to make these opportunities available to them. It also took a lot of planning on the part of my colleagues, Jon Paparsenos and COBA Dean Salchenberger. And I am thankful for their support during the visit."

Dr. Krause and the AIM students are back to work following the 'break.' He said, "The Chicago Circles event on October 27th is approaching rapidly. I will be hosting a roundtable focus group with Chris McGuire of Phalanx Capital Management. The title of the session is: “Why Hedge Funds Belong in Individual Investor Portfolios in the 21st Century. It should be a good session.”

The AIM students will not be presenting before the October 27th Circles event as previously planned, but will still be visiting Chicago for the AIM Chicago Road Show scheduled for Friday, November 12th at the CCS Learning Center, 155 North Wacker Drive, Suite #1790. An invitation will send out shortly to the Chicago-area Marquette alumni. Krause added, "Save the November 12th date. We will be presenting 8 stocks and are look forward to seeing you then."

Sunday, October 17, 2010

Marquette Finance Students to Visit Balyasny Asset Management As Guest of Scott Schroeder

On October 20, eleven Marquette University finance students traveling with Dr. David Krause in New York will have an opportunity to visit Balyasny Asset Management (BAM), an absolute return strategy hedge fund. They will be the host of MU alumnus, Scott Schroeder, who is a co-founding partner of BAM. Mr. Schroeder will also be a part of the Marquette CIRCLES event on October 19. The Keyes Dean of the College of Business Administration, Dr. Linda Salchenberger, will also join the students and Dr. Krause at BAM.

Founded in 2001 by Dmitry Balyasny with a team of 12 in Chicago (including Scott Schroeder), Balyasny Asset Management has grown to six offices (Chicago, Greenwich, Hong Kong, London, Mumbai, and New York) in four countries with over 100 professionals. According the to company's website, "Although the company has grown, the original premise remains the same: Create a culture with a work-hard / play-hard mentality where successful people can grow to their potential and feel part of a "family". It is truly BAM's culture that sets us apart from the rest of the industry."

The visit to BAM's New York office will include: an introduction to the hedge fund industry, a discussion of the capital markets and trading desk, an opportunity to watch the opening of the market with BAM's traders, and opportunities to meet with portfolio managers and market analysts.

Dr. Krause, AIM program director said, "We are looking forward to our visit to Balysany. Because this will be the only hedge fund we visit this week during our NYC trip, the time we spent with Scott Schroeder and his colleagues at BAM will be special. We are thankful that we can spend part of the morning inside this highly regarded hedge fund."

Balyasny offers a common platform for its investment professionals. These professionals are from various investment sectors and share their experiences through this arrangement. BAM's data sharing is quite helpful for the development of ideas with the firm. BAM is also operating in several other countries and so it has the necessary knowledge about the prevailing trends in the international asset management sector.

According to the firm, in order to get proper returns from the modern-day market, it is necessary that the professionals, like portfolio managers and the portfolio analysts, are experienced enough and devote their full efforts to developing new concepts and ideas. The potential investment sectors are located by Dmitry Balyasny with the assistance of the senior portfolio managers and the sector analysts. Whenever any investment option is located, the entire team of professionals including trading desk professionals, risk management professionals and all others invest their time to understand and analyze the options. Through this process, the best strategy is developed regarding investment in a particular asset.This has served BAM successfully throughout its existence.

Saturday, October 16, 2010

Marquette University Finance Students to Visit Morgan Stanley on October 20th

On Wednesday, October 20th, about 30 Marquette University FMA students and Dr. David Krause will visit Morgan Stanley during their annual New York City trip. Thanks to the efforts of Marquette alumni: Ashley Beckner (MU '07), Steven Holtkamp (MU '06), Mark Davino (MU '08), and Amy Klemme (MU '10), the finance students will have an opportunity to visit the investment bank and meet Jim Runde and William Hackett - as well as tour Morgan Stanley's new Manhattan trading floor.  

Jim Runde (MU ’69) is a Special Advisor and a former Vice-Chairman of Morgan Stanley. Throughout his career with the firm, he has worked on mergers, privatizations, and restructurings, with a focus on the transportation and infrastructure industries. Since 2006, he has been a member of the Board of Directors of The Kroger Co., one of the nation’s largest grocery retail chains. He has also served on the Board of Directors of Burlington Resources, a large U.S. oil and gas company, and he serves as a trustee of The Morgan Library & Museum.

Jim Runde
Mr. Runde was elected to the Marquette University Board of Trustees in 2000. He holds a bachelor’s degree in electrical engineering from Marquette University and a master’s degree from George Washington University School of Business. After attending Marquette on an NROTC scholarship, he served five years as an officer in the U.S. Navy. As an alumnus, he has maintained his relationship with the university. Mr. Runde has served on the advisory board of the College of Business Administration, as an executive on campus, and is a member of the National Honor Society of the Marquette Financial Management Association. He is a member of the Marquette University 1881 Society and has received the Professional Achievement Award from the College of Engineering.

The Marquette finance students will also have an opportunity to meet William Hackett, who is an Executive Director at Morgan Stanley Smith Barney's Global Wealth Management Group - Capital Markets. Mr. Hackett received his degree from Saint John's University's Tobin College of Business. Mr. Hackett manages Morgan Stanley's GWMG Sales & Trading desk in Manhattan.

Morgan Stanley Smith Barney is a global leader in wealth management with an extensive network of 1,000 offices across the U.S. and in key international locations. It provides a range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, credit and lending, cash management, annuities and insurance, retirement and trust. It provides specialized financial services to ultra-high net worth individuals through Morgan Stanley Private Wealth Management.  

Dr. David Krause, AIM program director said, "This will be the sixth straight year that we have visited Morgan Stanley during our fall break. We enjoy meeting our Marquette alumni at Morgan Stanley and we especially look forward to visiting with Mr. Runde during our annual NYC. His insights and advice are greatly appreciated by the students. We also have had excellent success in placing Marquette finance students with Morgan Stanley. Besides Ashley, Steven, Mark and Amy; Will Lunkes and Steve Briggs have also joined the firm within the past year."  

Friday, October 15, 2010

Marquette Finance Students to Visit Citibank During FMA NYC Trip - Opportunity to Meet with Dr. Alan MacDonald

On Friday, October 22, Dr. Krause and about 30 Marquette University finance students will be visiting Citigroup's corporate headquarters at 399 Park Avenue in New York. They will be the guests of Marquette alumni: Sue Harnett, Global Performance Management at Citibank, and Daniel Williams, Managing Director, Citi Private Bank.

Sue Harnett
Dr. David Krause, AIM program director said, "We are looking forward to our visit to Citi. Sue and Dan continue to provide opportunities for our students with internship and career opportunities. They also have been instrumental in organizing the annual "Ins and Outs of Wall Street" and video-conferences between MU alumni and students on campus. This will be another excellent opportunity for our students to experience the 'real world' of high finance."

Dan Williams
Sue and Dan will talk with the students about their respective roles at Cita and answer questions. The students will also be treated to a presentation and discussion with Alan MacDonald. He is the Chief Client Officer of Citi.  Additionally, he is a Vice-Chairman and board member of Citibank, Chairman of the Corporate Client Committee and Chair of Citigroup’s Pension Fund Committee.

Prior to assuming his current position, Dr. MacDonald was Chief Operating Officer of Global Corporate and Investment Banking. From 1998 to 2004, he was head of the Global Corporate Bank. From 1996 to 1998, he was co-head of Global Markets with responsibility for Citibank's corporate finance activities worldwide.

Alan MacDonald
From 1993 to 1996, he was head of Markets & Banking in the United States and Canada. From 1990 to 1993, Mr. MacDonald was head of Citicorp’s International Banking and Finance Sector which provides corporate and investment banking services to Citicorp’s institutional customers in 67 developing and newly industrialized countries in Asia, Latin America, the Middle East, Eastern Europe, and Africa.

From 1986 to 1990, as head of Citicorp’s North American Investment Bank, Mr. MacDonald had responsibility for foreign exchange trading and sales; U.S. Treasury and Agency trading, finance and sales; interest rate and foreign exchange derivatives; corporate finance; asset-backed securities; municipal finance; Citicorp’s U.S. dollar funding; and Canada and Puerto Rico investment banking activities.

Prior to this, Dr. MacDonald served as Head of Citicorp’s Information Business Group for two years. From 1979 to 1984, he served as CEO of Banco de Investimento Crefisul, Citicorp’s 49 percent-owned investment banking subsidiary in Brazil. During 1974 to 1979, Mr. MacDonald was in turn head of Citicorp’s Leasing, Finance and Export Trading subsidiaries in Colombia, and in 1976, was named CEO of Banco Internacional de Colombia, Citicorp’s 49 percent-owned commercial banking subsidiary in Colombia.

Prior to joining Citicorp, Mr. MacDonald was an economist with the United Nations Economic Commission for Europe based in Geneva, Switzerland from 1971 to 1974 and was a Financial Management Associate with General Motors in Wilmington, Delaware from 1962 to 1966.

Dr. MacDonald earned a Bachelor of Science Degree from Drexel University in 1966, a Master of Science Degree from the London School of Economics in 1968, and his Doctorate in Economics at Cambridge University, England in 1971. He is a member of The Conference Board; a member of the Economic Club of New York; a Trustee of the American Council in Germany; a Trustee of the Japan Society; a Trustee of the South Fork (Long Island NY) Chapter of the Nature Conservancy; a Trustee, member of the Executive Committee and Chair of the Marketing Committee of the New York Philharmonic Orchestra; a Trustee, member of the Executive Committee; and Chairman of the North American Advisory Board of the London School of Economics and Co-Chairman of the Research Committee of the Hospital for Special Surgery in New York. He has served as a Director of Liberty Brokerage Company; Director of the American Bankers Association Securities Association; and as a member of New York Partnership’s High Tech Committee.