Kit Menkin’s Leasing News

                   www.leasingnews.org  Tuesday, April 16, 2002

           Headlines----

Rates fall in Treasury bill auction

   Stocks Fall as Citigroup, GE Weigh

      GE Capital plans to lay off 7,000 employees

         Accounting, revenue worries assail GE

             Marlin Leasing Secures $75 Million CP Warehouse Facility

Commercial Money Center---San Diego Tribune-Union on the Job

   Inter-Leasing Association Committee Meeting in Orlando, Florida

        NAELB Orlando, Florida Conference Reaction

          U.S. Economy: Higher Energy Costs Erode Spending

             Leasing News Recruiter Reaction

                Barry S. Marks, Esq. NAELB Orlando Address

                   Microvision Initiates Customer Leasing Program

                     Comdisco Begins Trading on the Over-the-Counter

                       Streamlined Sales Tax Project Definition Report Wrap-Up

                           GAO Says Amtrak should make better decisions

                                   Providian agrees to sell 1.7 million high- risk accounts

                                           Tales from the AMT battlefront

### Denotes Press Release

By Associated Press

WASHINGTON (AP) Interest rates on short-term Treasury securities fell in Monday's auction.

The Treasury Department sold $10 billion in three-month bills at a discount rate of 1.680 percent, down from 1.710 percent last week. An additional $10 billion was sold in six-month bills at a rate of 1.905 percent, down from 1.975 percent.

The three-month rate was the lowest since Jan. 22, when the bills sold for 1.670 percent. The six-month rate was the lowest since March 4, when the rate was 1.890 percent.

The new discount rates understate the actual return to investors 1.712 percent for three-month bills with a $10,000 bill selling for $9,957.50, and 1.950 percent for a six- month bill selling for $9,903.70.

In a separate report, the Federal Reserve said Monday that the average yield for one- year constant maturity Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 2.53 percent last week from 2.64 percent the previous week.

________________________________________________________________________

Stocks Fall as Citigroup, GE Weigh

By Haitham Haddadin

NEW YORK (Reuters) - Blue-chip stocks dropped on Monday after disappointing results from financial behemoth Citigroup Inc. (C.N) renewed jitters about sagging corporate earnings at the start of the first-quarter earnings season.

Conglomerate General Electric Co. (GE.N), whose businesses include manufacturing, finance and the NBC television network, also pulled down the market, dogged by lingering investor concerns about slowing earnings.

``There's some sector rotation going on,'' said Gary Wedbush, head of trading at Wedbush Morgan in Los Angeles, referring to the market dichotomy. ``One thing that is having a negative impact on the Dow (blue chips) is GE, which is very weak,''

Investors are on tenterhooks and hoping for signals of a profit recovery in the first-quarter results. A raft of firms will announce profits on Tuesday, dubbed ``Super Tuesday'' on Wall Street. The coming trading session is also a big day for economic data with up to eight reports expected, including March retail inflation data.

``This is the biggest earnings week for the quarter and it didn't start off with a bang,'' said Matthew Ruane, director of listed trading at Gerard Klauer Mattison & Co. GE ``wasn't that spectacular on the conference call ... to me it didn't enlighten anyone for the certainty going forward.''

Citigroup slumped $1.18, or 2.5 percent, to $45.92, weighing on the Dow. The company posted quarterly profits that missed analysts' forecasts analysts as its corporate and investment banking income slipped. Citigroup was the New York Stock Exchange's third-most active stock.

GE, the most active name on the Big Board, fell $1.70, or 5 percent, to $31.85. GE slumped last week after posting a rare drop in net income after charges for accounting changes. Its revenues were weaker than many analysts had expected. GE late in the day said its financial arm was slashing 7,000 jobs.

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GE Capital plans to lay off 7,000 employees

By John Christoffersen

ASSOCIATED PRESS

STAMFORD, Conn. – General Electric Co. said Monday it plans to eliminate 7,000 jobs this year at GE Capital to improve productivity at the financial services division.

James Parke, chief financial officer of GE Capital, discussed the plan in a conference call with analysts and investors, said David Frail, a company spokesman. The cuts represent slightly more than 2 percent of GE's work force of 310,000.

Frail said the cuts were not related to recent criticism of the company's finances or its first-quarter earnings report last week.

"It is a regular part of the business," Frail said.

GE earned $2.50 billion, or 25 cents per share, in the January-March period, down from profits of $2.57 billion, or 26 cents per share, in the same quarter of 2001. It was a rare drop in profits for the blue chip company.

GE's profits matched the consensus forecast of analysts surveyed by Thomson Financial/First Call. But its flat revenue was below expectations and raised concerns about maintaining strong profits.

GE Capital represents about 40 percent of the company's profits. Critics, including a leading bond trader, have questioned the source of GE's profits and its proportion of short-term debt.

GE has stepped up its disclosures in response to the concerns and repeatedly reiterated its earnings forecasts.

Other GE businesses include the NBC television network, aircraft engines, medical equipment and appliances.

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Marlin Leasing Secures $75 Million CP Warehouse Facility

Marlin Leasing announced it has completed a $75 million commercial paper conduit facility. The facility is funded by North Coast Funding, a CP conduit administered by National City Bank, utilizing a financial guarantee policy issued by MBIA Insurance.

Daniel Dyer, CEO of Marlin, commented: "This facility provides access to investment grade commercial paper rates. In addition, this newest facility adds to our existing financing capacity and further strengthens Marlin's position as a leading source of small- ticket leasing to vendors and small businesses throughout the U.S."

Seventy-five percent of their business is from direct sales/captive vendor relationships; twenty-five percent from equipment leasing brokers.

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Commercial Money Center---San Diego Tribune-Union on the Job

Don Bauer of the San Diego Tribune-Union was e-mailed  the Leasing News story

by readers who live in the area. He is working on it.  He has the time, the expertise, the ability, to dig deeper. Let’s see what he finds out.

In the meantime, readers continue to send us more information:

A few years back we were approached by Wayne Pirtle ( alleged de facto president

of CMC)  to lease $250,000-300,000 of PinnFund's new office furniture and computers, etc. for the opening of their Chicago office.  The financials looked fine, but there was hesitancy on our part because they did sub-prime mortgages, and we were concerned if they'd be able to continue to sell off their sub-prime paper [this was just after

the Mercury Finance (sub prime auto paper) thing unraveled (Mercury Finance

was cooking the books) in the Chicago area].

The real kicker was the transaction was submitted with full financial

disclosure and audited statements etc., and the all-in yield on the

transaction was in excess of 20%. So we reasoned they were not very good

business people if they were willing to pay 20% with the strength of their

financials or someone was asleep at the switch (management had no financial

controls if they were willing to pay those rates that the broker

negotiated).

So if it walks like a duck and quacks like a duck, then it's a duck, or if

it's too good to be true, then it is.  It just seemed like one of those

credits where one says to himself, "This is a house of cards".

It looks like we dodged a nice size bullet.  Thanks for the updates.

( name withheld )

-- 

Just got to say Kit that I guess that I am lucky that you weren't doing your

Leasing News in the fall of ***** through ****! What your first reader (name

withheld) said really struck a cord with me. I guess he really won't know

how much his career has been affected until years (and I mean years) go by,

and he is still denied an interview based on the combination that CMC is on

his resume and that he was in upper management...that seems to be where

blame lays, and also where it is most difficult to take away blame from.

After all wasn't it Shakespeare who said "he who protests the loudest..."

Also thought I might throw it out, that if it has not yet started, there

will definitely be a FBI investigation. Once that starts, anyone who knows

anything of worth should expect that knock on the door in the dark and

Mulder and Scully will be standing there with their ID's.

Not a moment that I would want my family or me to ever relive again.

Keep up the good work, but understand when good people can't really put their name on things, it could compromise their testimony later!

You guessed it - Name withheld!!!

--- 

I thought that the writer of the e-mail who claimed their actions/behavior was

done by management or had to be done to be approved or that was how you

made the credit lines work, are GUILTY.  If someone tells you to do something,

and you know you should not, but you do it because you were told to do it, then you are as guilty as they are.

As I told all my employees when it started coming down, we are not in slavery here, you should only do what you feel is correct to do, we all have to lay our heads down at the end of the day and know we did good work that day, that if anyone asks you to do anything that does not sound kosher, then you as an employee have a responsibility to ask questions of others in the company, that is the only way to stop the guilty from getting away with murder.

 Thank goodness that all of my employees that worked in my department (over 55 total) before we closed down were not guilty of any wrong doing!

(name with held

--

( Leasing News could find no information about the second corporation filed

in the suite by one of the insurance bonding companies, but this reader

fills us including why individuals are being sold: they personally guaranteed

the transactions:)

CSC would be named as that company was responsible for reporting the figures

on the portfolios and was a separate corporation although it had no assets

of its own.  Once CSC effectively split the operation into 2 companies, one

to service and another to sell, they took over all of the duties

associated with the performance of invested funds and reported those figures

to the investors and sureties.  Because the information was manipulated, I

can fully understand that CSC would be named.  Nevertheless, they were

acting on behalf of CMC, there was no real separation between the two.  All

of the parties signed Personal Guarantees at one point or other, so I'm not

surprised that they would be named as individuals as well.  That's when it's

really going to get interesting, when this gets into personal assets.  You

will be shocked at how these people lived.

 Suffice it to say that there was no evidence that anyone named Fisher or Pirtle ever went hungry.

---

The none-payment to the Kiosk vendor story must be part of the

"Healthcare Kiosk Program", established by Dr. Fisher to give

visitors to the Kiosk at shopping centers medical information and

to promote chiropractor care.  It was designed to steer visitors to chiropractors

who signed up for the Kiosk information program. No fee, just a flat

charge to be listed as a place to go

----

From: Archie Julian <JulianA@ExchangeBank.com>

Kit:

            Thanks for doing such a good job. I thoroughly enjoyed reading about

the CMC mess.   Also, you mention entrepreneurs which in the Leasing

Industry should be translated as "Living by ones wits." 

Inter-Leasing Association Committee Meeting in Orlando, Florida

Eastern Association of Equipment Lessors

Mid-America Equipment Lessors (affiliate of Equipment Leasing Association)

National Association of Equipment Leasing Brokers

United Association of Equipment Leasing

Members of the Boards of UAEL, MAEL, EAEL and NAELB met in Orlando last

week preceding the NAELB convention to discuss improved cooperation

among associations.  There was an open-minded sprit with all

participants. 

We intend to have a second meeting of this group at the UAEL/EAEL

Conference in Las Vegas in May.  We will keep you posted on our

progress.

Mike Meacher

meacher@bankgrouponline.com

800-403-0422

National Association of Equipment Leasing Broker Orlando, Florida Conference

Over 200 attended the National Association of Equipment Leasing Broker Orlando,

Florida Conference.  Fifty of the attendees were funders.  Yesterday we reported

that John Chase, Chase Lease,  Jim Borland, US Energy Capital,  and John Winchester, ComCo Equipment Leasing Group,  were elected as Directors of  475 member National Association of Equipment Leasing Broker at the Orlando, association. Michael Meacher, TecSource, was saluted for the work he did as president.  Bob Bell, Independent Leasing Associations, was elected as President-Elect and Gerry Egan, TecSource was chosen president.

Reaction to the conference has been excellent, such as:

“It was an awesome conference.  Everyone was open and sharing with

information on how to increase sales and produce better business.  We

are proud to be a member in this organization and hope those brokers who

were not able to participate in this years convention will be able to

join us in Chicago next year.”

--

Tammy Negelein, Transaction Manager

lsmart@azstarnet.com

Lease $mart - Equipment Leasing & Financing for Business & Industry

http://www.lease-smart.com

Happiness is . . .

          A Positive Cash Flow (TM)

520/628-9929 or 800/947-2451

---- 

 cc:kitmenkin@leasingnews.org

    I would like to say Thank You to Bob Bell and all the folks that had anything to do with the conference for a job well done.  I thought this was just an overall EXCELLENT meeting.

    The folks in Chicago now have big shoes to fill.

    Scott Thomas

sst@jamesrivergroup.com

    James River Leasing

PS - Missed you in Orlando.

 ( Sorry, I am the past chairman of the Salvation Army Adult Rehabilitation

Four County Division and had made a prior commitment to the current chairman

that if he took the job, I would be there to help him out. I did miss many

of my friends, plus the news opportunities.  editor )

---

cc:Kitmenkin@leasingnews.org

We should also congratulate the people who made the effort to attend.  It isn't always easy to take time out from your business and personal life for these events. The folks that did go were a group of individuals who are very committed to their companies, the association, and the industry. 

The numbers may have been down slightly, however that was more than offset by the quality of the crowd that was present.  Those fortunate

enough to attend got to meet with a dynamic group of experienced and successful entrepreneurs*.  There may have been a general feeling of

concern in the room about the past year, but there was also a sense of optimism and confidence that was inspiring.

 A few people at the conference commented that they were surprised at the lower turnout. Each time I mentioned the positive aspects of

networking only with experienced people who were serious about this business, they unanimously agreed that it was better. (Yes, even the

funders

If Shari and the Chicago organizers can get this same group of wonderful people to attend next year, they'll be guaranteed a success!

( name with held )

U.S. Economy: Higher Energy Costs Erode Spending

Washington: U.S. retail sales rose less than expected in March as shoppers spent more on higher- priced gasoline and reduced purchases of furniture, clothing and automobiles, suggesting the recovery may be losing momentum.

Excluding a 3.8 percent rise for gasoline, sales were unchanged, the Commerce Department said. The 0.2 percent gain for all retail sales matched a February increase that was less than previously reported.

``This is a reminder that consumers are not getting carried away,'' said Stuart Hoffman, chief economist at PNC Financial Services Group, Pennsylvania's largest banking company. ``It's going to be a below-average recovery.''

Consumer optimism slipped this month, the University of Michigan reported. The most likely reason was higher energy costs, which pushed up the producer price index by 1 percent in March, the largest increase since January 2001. Sustained higher oil

costs may limit the amount of money consumers have for other purchases, causing growth to cool in the current quarter.

 ( courtesy EFJ.com )

Feds Put HP Merger Under Microscope

By Michael Singer  Internet.com News

Two separate government offices have asked for additional information from Hewlett-Packard (NYSE:HWP) in reference to its $19billion proposed merger with Compaq Computer (NYSE:CPQ).

The Palo Alto, Calif.-based computer and printer maker confirmed the request in its Form 8-K (special announcement) filing issued Monday. HP said it is cooperating fully with both inquiries.

Officials with the San Francisco office of the Securities and Exchange Commission and the U.S. Attorney's Office for the Southern District of New York are reviewing the March 19 proxy vote cast by Deutsche Bank and Northern Trust and their respective affiliated parties.

Their concern, mirroring a lawsuit filed on March 28 by HP board member Walter Hewlett who rallied against the merger, suggests that HP used its corporate muscle to sway shareholders at the last minute.

The issue has taken on a life of its own with the recent release of a corporate voicemail between HP CEO Carly Fiorina and CFO Bob Wayman in which she suggested that HP might "have to do something extraordinary for those two (Deutsche Bank and Northern Trust ) to bring them over the line."

While HP is acknowledging the conversation, it denies any wrongdoing.

"We have long-standing relationships with Deutsche Bank as well as with many other institutional shareowners," HP released in a statement. "Some of them voted for the merger, others against, some split their votes, and others changed their minds -- in both directions. We never acted improperly. We remain optimistic that we can close the merger on our current schedule."

In its 8-K filing, HP said it received a subpoena on April 10 to produce information from the New York Attorney's Office and then a separate request from the SEC. The company said the interaction with both offices was informal and

"The SEC has advised us that this inquiry should not be construed as an indication by the SEC or its staff that any violations of law have occurred, nor should it be considered a reflection upon any person, entity, or security," HP said in its filing.

Meantime, Hewlett's suit has been given the green light by Delaware Chancery Court judge William B. Chandler III despite HP's motion to dismiss the complaint.

The no jury trial is set for April 23 and could result in a second shareholder vote or the dismissal of the votes in question.

The result of the proxy election is still being tallied by IVS Associates in Delaware and is not dependent on the outcome of lawsuit.

_______________________________________________________--

Leasing News Recruiter Reaction ( perhaps we should have a “Recruiter’s Page” )

Well said, Teri!!!!  Teri Gerson is a respected recruiter serving the

financial community and has far more experience at it than I.  But without

being presumptuous, I believe there is additional value-added by  using

recruiters than she had mentioned.  When I first became a recruiter, I

thought I knew everything as a business manager that I needed to know about

identifying, screening, interviewing and extending an offer to a candidate.

I'd done it successfully so often over the years.  Or so I thought.  The

fact is, and I see it so often, many hiring managers are not getting the

best candidates because they either don't know what they're doing or they

don't know what they are looking for.

In identifying and screening the scores, if not hundreds of resumes that

come in for any single position, many hiring managers focus on the title,

duties and responsibilities of a position.  If someone's done it before,

certainly, they can do it again.  Often they do not factor in what the

person has accomplished and how those accomplishments equate to their own

performance goals (if they even know what they are), nor what the potential

of a candidate might be, nor even of what the candidate's own goals are for

his or her career path.

When interviewing candidates, it's not uncommon to un-sell the candidate

while trying to sell the position or to converse on two different levels,

often because of a degree or two in jargon, and worst of all, it's easy for

the interviewer, either intentionally or not, to convey an arrogant

attitude, after all, he or she is the one with the job.

And finally, when extending an offer to candidates, many companies fail to

recognize that compensation is not the sole driver and determinant, nor even

the dominant one except for salespeople, and they lose the opportunity to

bring on highly qualified candidates because they did not sell the

opportunity, only the money; they did not sell the company, only a number.

As recruiters we deal with these issues daily.  We work with our candidates

to help them identify their goals and the kind of people it will take to

achieve them.  We match culture as well as need and skills.  We provide

feedback to employers who are mismanaging their interviewing techniques,

often because of their own time restraints, and we let the candidates know

that these kinds of things are liable to happen in an interview and to be

prepared for them, not to be put off by an occasional interruption, that

like it or not, hiring someone is not always the interviewers first

priority.  And when it comes to extending the offer, we are often the

mediator who can get both sides to recognize where an offer should be, why

it is a good or not a good offer, and the other benefits and growth

opportunities of working for your company.

We play a crucial role in the hiring process.  A short term placement to us

is tantamount to a bad lease.  If you're in it for five years, you expect

the lessee and the equity and credit partners to be in it for the term.  If

you sold any number of leases that defaulted to a funder, how long would

they continue buying your paper?  Well it's pretty much the same with us.

We're in it to see that you get the quality of person who fits your

environment and who can meet the expectations you mutually agree can and

should be able to be met.  If you don't hire the person who meets all of

those qualifications, you're buying your own bad paper.  Maybe it's time to

outsource that part of your business.

Hal Horowitz

Account Executive

Search West

340 North Westlake Blvd., Suite 200

Westlake Village, CA 91336

Phone: 805-496-6811 ext. 231

Fax: 805-496-9431

Cell: 818-730-0645

hal.horowitz@searchwest.com

http://horowitz.searchwest.com

"It is my mission to collaborate with my clients in order to further their

success by identifying professionals of uncommon ability to whom my clients

might not otherwise have access and who will make a valuable contribution to

my clients' goals."

To find superior people

You must first define superior performance.

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    Barry S. Marks, Esq. National Association of Equipment Leasing Brokers address at the Orlando