Bank of America – Jack Grundhofer, chairman emeritus of U.S. Bancorp and Coachella Valley philanthropist, dies
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Sherry Barkas
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Brian Blueskye
| Palm Springs Desert Sun
John “Jack” Grundhofer, chairman emeritus of U.S. Bancorp and a prominent Coachella Valley philanthropist, died Sunday at his home in Indian Wells. He was 82.
Coachella Valley residents remembered Grundhofer for his generous contributions to the community. Grundhofer, who lived part of the year in Indian Wells, served as vice chairman of the Palm Springs International Film Festival and served on the board of the Eisenhower Medical Center in Rancho Mirage, among others.
He was a major donor to the Palm Springs International Film Festival, the Living Desert and the Palm Springs Art Museum. The Living Desert’s new $10 million entrance plaza is named the Patti and Jack Grundhofer Plaza, and Eisenhower Health in February 2020 unveiled the Patti and Jack Grundhofer Physical Therapy and Rehabilitation Services center.
“He played a major role in the Film Festival success,” said Harold Matzner, chairman of the Palm Springs International Film Society. “We worked together on that and a lot of political campaigns. It was wonderful to work with a guy like that. Jack was the kind of guy if he said he was going to do something, he did it. He was always as good as his word.”
Leaders of the Palm Springs Art Museum, in a statement, called Grundhofer an “extraordinary philanthropist, businessman, and a one-of-kind human being.”
“His passion and love for the arts was reflected through all the organizations that he and his wife Patti supported over the years. Palm Springs Art Museum considers itself extremely fortunate for having known Jack and for being the recipient of his generosity. We and our entire community grieve with Patti and the rest of their family over this loss.”
Dick Shalhoub, owner of several McDonald’s restaurants in the valley who also served with Jack and Patti Grundhofer on The Living Desert board of directors, called Grundhofer “a very, very good friend of the Coachella Valley.”
“He just was a great guy,” Shalhoub said. “He’s one of those special kind of people who could look at a situation, analyze it and within a very short period of time give you two or three alternatives for the best outcome.”
“He loved life and he loved to do great things, and he did them,” he continued. “It’s a great loss for his family. It’s a great loss for the Coachella Valley.”
A long career in banking
Grundhofer was born in Los Angeles in 1939. His father, John, was a bartender and often worked two or three jobs at a time. His mother, Laura, worked as a housekeeper. A gifted student, Grundhofer was 12 when he passed tests to enroll in the demanding Loyola High School, where his commute included a one-hour ride on a streetcar twice a day.
After his father suffered a heart attack, Grundhofer took on a daily newspaper route at age 12 to earn money so his family would not lose their home. In high school, Grundhofer worked as a stock boy in a department store.
He attended Loyola University on a baseball scholarship and mowed lawns to help pay for his expenses. He earned a degree in economics and went to work for Union Bank as a credit analyst and trainee. He earned extra income working nights as a “repo man” for financed cars in arrears.
He told the Associated Press in 1995 that during his stint at the bank, he was shot at as he tried to repossess a debtor’s car.
He returned to school at night and in 1964 earned his M(BA) in business administration with a concentration in finance from the University of Southern California.
Over his 18-year career at Union Bank, Grundhofer rose to be regional vice president for Orange County.
In 1978, he joined San Francisco-based Wells Fargo Bank as executive vice president of the Southern California Retail Banking Group. During his time there, he also lead Wells Fargo’s Commercial Banking Group within California, served as a Wells Fargo vice chairman with responsibility for corporate banking, commercial banking, capital markets, loan adjustment, cash management and wholesale information services, and was senior executive officer for Southern California.
In 1990, Grundhofer was recruited from Wells Fargo to lead First Bank System as chairman, president and CEO. At that time, the bank, the second-largest in Minnesota, was facing severe financial difficulties. Under Grundhofer, the company’s growth strategy included over 35 strategic acquisitions, including that of U. S. Bancorp, based in Portland.
As the chairman of U.S. Bancorp, he was “gobbling up small institutions in California in a bid to build a third major franchise,” along with Bank of America and Wells Fargo, the L.A. Times reported in 2000.
He had bought two San Diego banks — Bank of Commerce and Peninsula Bank — and Newport Beach-based Western Bancorp, which operated Santa Monica Bank and Southern California bank, within six months of the article’s publication.
“The purchases boosted U.S. Bancorp’s deposits in California to nearly $6 billion and catapulted it from the state’s 13th-biggest bank to No. 6,” the Times reported at that time.
“This is a bit like a homecoming for me,” Grundhofer told the Times.
Grundhofer retired from U.S. Bancorp in 2002. The year before that, the company was bought by Milwaukee-based Firstar Corp., which was headed by Grundhofer’s brother, Jerry.
The ‘most frightening experience’ of his life
In late 1990, Grundhofer’s college-aged daughter Karen was shot seven times by a man who randomly opened fire in a Berkeley hotel bar, according to the Times.
Barely six weeks later, Grundhofer, who had served as a sergeant in the California National Guard, experienced what he called “the most frightening experience of my life” when he was abducted at gunpoint from a downtown Minneapolis parking garage and forced to make a ransom demand from his car phone.
The kidnapper strapped sticks of dynamite to Grundhofer’s arm and made him drive them to a wooded area in northwestern Wisconsin. Tied up and left alone by the kidnapper, Grundhofer managed to free himself and sought help at a nearby farmhouse.
The ransom was not paid, and the kidnapper was not found. The incident was later featured on Unsolved Mysteries.
Grundhofer told the Times that the incidents gave him a new perspective on life.
“People tell me I have nine lives and I’ve used up six,” he told the newspaper. “I’ve lived through too many ups and downs in my life to let anyone or anything get to me. I didn’t survive a kidnapping, my daughter’s shooting… and a lot of other things in life by being a quitter.”
‘Amazingly generous’
Dennis Flaig-Moore, general manager of Saks Fifth Avenue on El Paseo and a close family friend, said he would miss Grundhofer.
“Jack was a tough businessman with a huge heart and gentle soul,” he said. “He adored his wife, Patti, and many friends. I so admired his genuine take on life and giving spirit.”
Allen Monroe, president and CEO of The Living Desert, said he was “deeply saddened” to hear of Grundhofer’s death.
“Jack was a tremendous supporter of The Living Desert for many years,” he said. “Together with his wife Patti, his generosity helped the zoo educate and inspire future generations.”
Other Coachella Valley causes supported by Grundhofer’s foundation were the McCallum Theatre, the Barbara Sinatra’s Children’s Center, Cancer Partners, the Coachella Valley Symphony, the Desert Community Foundation, the Joslyn Center, United Way of the Desert, Desert AIDS Project, the Pet Rescue Center in La Quinta, the Rancho Mirage Public Library and the PDCMS Foundation.
Grundhofer was also a donor to the Palm Desert-based Waring International Piano Competition. The Waring gave its Lifetime Achievement Award to Jack and Patti Grundhofer in 2018.
“They were amazingly generous,” said Peggy Cravens, chairman of the board of the Waring, “and they believed in the things they supported.”
Jack and Patti Grunhofer were also the presenting sponsors of National Philanthropy Day in the Desert 2020.
Grundhofer also served as a director for companies including Air California, Golden West Mobile Homes, The Donaldson Company, Inc., Minnesota Life Insurance Company and BJ’s Restaurants, Inc. He also served on the board of the Horatio Alger Association, was a trustee of Loyola Marymount University, and served as chairman for a United Way campaign in the Twin Cities.
Other nonprofit board service included the Livingston Center for the Arts and Culture in Livingston, MT and the University of South Dakota in Vermillion. His service for professional associations included the Minneapolis Federal Reserve, Financial Services Roundtable, International Monetary Conference, Federal Advisory Board and Federal Reserve Board.
He received the Horatio Alger Award in 1997.
Grundhofer and his wife divided their time between Indian Wells, Minneapolis, Sioux Falls and Livingston, Mont.
An avid outdoorsman, Grundhofer traveled the world to fulfill his passion for bird hunting.
He was a member of numerous golf clubs, including the Los Angeles Country Club, Bel Air Country Club, the Eldorado Country Club in Indian Wells, the Birnam Wood Golf Club in Santa Barbara, Newport Beach Country Club and Big Canyon Country Club in Newport beach, among others. Grundhofer was very social and an active member of the California Club in L.A. and the Minneapolis Club.
Grundhofer is survived by his wife, daughters Karen Grundhofer-ElKawa and Kathleen Grundhofer (Kevin Chatow), and grandchildren Ramzi, Aliya, Zakaria, Tyler and Katie. In addition, he is survived by his brother, Jerry Grundhofer (Kathie); niece, Lauren Peterson (Christopher); sister, Joan Briggs and nephew, Jeff Briggs (Jing).
The family will hold private services and burial.
Desert Sun staff members Winston Gieseke, Kristin Scharkey and Julie Makinen contributed to this report.
Bank of America – Jack Grundhofer, chairman emeritus of U.S. Bancorp and Coachella Valley philanthropist, dies
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