Fritz Gesztesy and Lev A. Sakhnovich A Class of Matrix-Valued Schr\"odinger Operators with Prescribed Finite-Band Spectra (125K, LaTeX) ABSTRACT. We construct a class of matrix-valued Schr\"odinger operators with prescribed finite-band spectra of maximum spectral multiplicity. The corresponding matrix potentials are shown to be stationary solutions of the KdV hierarchy. The methods employed in this paper rely on matrix-valued Herglotz functions, Weyl--Titchmarsh theory, pencils of matrices, and basic inverse spectral theory for matrix-valued Schr\"odinger operators.