|
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Kit
Menkin’s Leasing News
www.leasingnews.org Tuesday,
April 23, 2002 Accurate,
fair and unbiased news for the equipment Leasing Industry
Headlines----
Lessors.com,
Inc. Launches The Lessors Network
Fitch/ABS Equipment Leasing Delinquency Index
Latest Office Survey Shows More of the Same---
California economy seen soaring over decade-forecast
Fed Chairman Greenspan credits technology
Consumer Debt At An All Time High
Pop-Up Killers
Library Research from Home Recruiter
Teri Gerson does not agree with Recruiter Fred St. Laurent
Pomeroy Computer Resources Closes Asset Sale of Leasing Division
BancPartners Announces New Bank Affiliations
American Express---Back in the Winner’s Circle!!!!
Behind American Express' $4 Billion Outsourcing Bet
Credit Raters Get Scrutiny and Possibly a Competitor
Access National Bank Acquires Commercial Finance Corp.
Patriot Bank First Quarter 2002 Earnings Up 33%
#Denotes
Press Release Equipment
Leasing Association Funding Exhibition Chicago, Illinois Leasing
News hopes to have some “feedback” from the conference started yesterday
and ending tomorrow afternoon. We can report from the several hundred
“auto responder” to yesterday’s Leasing News, we have
many readers
in attendance. The
National Association of Equipment Leasing Conference in Orlando had
from 170 to 200 in attendance, including fifty funders, depending on
who’s numbers you use. The up-coming joint Eastern Association of
Equipment Lessors and United Association of Equipment Leasing Conference
in Las Vegas, Nevada, co-incidentally about the same time as
the Association of Government Leasing and Finance Conference in
Baltimore, may have from 225 to 250 in attendance each. The ELA
Conference is usually has the largest attendance. The auto responder to
Leasing News surely is a strong indication to that fact. ###
##################################################### Lessors.com,
Inc. Launches The Lessors Network
- Atlanta, GA - Lessors.com, Inc. announces launching The Lessors
Network from the web site once rated in Yahoo's "Top 10 Most
Popular Leasing Web Sites".
The new site opens to a discussion board for the equipment leasing
and finance markets. Included in the discussion boards is an open
forum, company forum, association forum, job forum, resume forum and
funding forum. All forums are freely available to the public.
Additionally, the Lessors Network provides links to industry news
sources, associations and a innovative new "Event Specials"
service designed to offer discounted attendee registrations to industry
conferences and events. White & Yellow Page services are under
development for industry professionals to advertise their email addresses
and companies to advertise business profiles and contact information.
For additional information, please visit http://www.lessors.com. (This
site has a protection system, verification system, and is well regulated, current
and very much worth your visits. editor ) ###
################################################################## Fitch/ABS
Equipment Leasing Delinquency Index Fitch
Ratings-Chicago-: Fitch Ratings on Monday unveiled a new index that
benchmarks the delinquency performance of equipment lease-backed securities.
Rating approximately 80% of all equipment lease securitizations since
1997, Fitch designed the ABS Equipment Lease Delinquency Index to
become a leading indicator of ABS equipment lease delinquencies and,
ultimately, act as a barometer of credit quality within the leasing
industry. Featured
in the inaugural issue of 'The ABS Equipment Expo', a quarterly newsletter,
Fitch's delinquency index provides investors with new tools and strategies
in assessing current and future credit risk within their ABS portfolios.
In addition to highlighting the equipment lease delinquency index,
the newsletter will also include industry commentary and analysis. The
delinquency index contains 34 publicly placed equipment lease ABS
transactions rated by Fitch since 1997. The index tracks 31-60, 61-90
and 91+ day past due receivables as well as total delinquencies greater
than 30 days past due as a percentage of the monthly Aggregated Discounted
Receivable Balance (ADRB) for all transactions in the index, which
is measured on an actual timeline. By
fourth quarter 2002, Fitch will introduce a larger delinquency index
containing over 100 public, Rule 144A and private equipment lease
ABS transactions. The
newsletter can be found on Fitch Ratings' web site at 'www.fitchratings.com'
or by contacting Market Services at 1-800-853-4824. The ABS Equipment
Expo will be available for three months on the public portion of 'www.fitchratings.com'.
http://www.fitchratings.com/corporate/reports/report.cfm?rpt_id=142364 For
inquiries regarding web site registration or a trial subscription,
contact Maria Sedlack 1-212-908-0539, New York. Contact:
John Bella, Jr. 1-312-368-2058 or Sara Grohl 1-312-368-5467, Chicago
or Wendy Cohn 1-212-908-0681, New York. Media
Relations: Matt Burkhard 1-212-908-0540, New York __________________________________________________________________ Latest
Office Survey Shows More of the Same--- BOSTON,
/ -- Despite signs of improvement in the overall economy during the
first quarter of 2002, the commercial real estate market continued
its downward trend with market indicators showing that the office
market nationwide is still weakening, according to a survey by Colliers
International. While not surprising, since real estate is a lagging
indicator, the statistics suggest that the office market will hit
bottom towards the end of 2002, and not mid-year as earlier anticipated. "Unfortunately
there is nothing in these numbers to suggest we have hit bottom and
will likely mean we have another two or three quarters of lackluster
performance before the market rebounds," said Ross Moore, Vice
President and Director of Research for Colliers International. "Job
creation, which fuels the commercial real estate market, has been
quite weak during the first quarter and the negative sentiment from
corporate America concerning corporate profits and investment means
a slow rebound for office space this year," he added. Nationwide,
vacancy rates continue to increase, rising by approximately one full
percentage point during the quarter and are now at the upper end of
the market's comfort zone -- further increases will be less easy to
digest. With leasing activity during the quarter little changed from
the fourth quarter 2001, absorption remains negative for the fifth
consecutive quarter. These figures indicate that the market is still
working off the excesses of the longest economic expansion in US history,
but the amount of new sublease space has slowed, which is a positive
sign. "While
expansion is a word rarely uttered, tenant activity is up, and opportunistic
tenants are renegotiating their leases early," commented Moore.
"While activity is characterized by smaller deals, we are seeing
a 'flight to quality' in many markets, with Class A properties benefiting
from this trend." Moore
went on to say that "landlords are very aggressive, as they do
not want to lose tenants, and asking rents continue to trend lower,"
falling by another 4% -- broadly in line with that recorded in the
fourth quarter of 2001. "Sublease space continues to be tough
to move, and deals are taking a long time to close as tenants evaluate
the myriad of options available to them in this market," added
Moore. Colliers
International is a global partnership of more than 40 commercial real
estate firms. The organization's 8,900 employees span the world in
more than 255 offices in 51 countries. On a worldwide basis, Colliers
manages 465 million square feet, and has revenue of $US 1.1 billion.
For more information about Colliers International, visit our website
at www.colliers.com . SELECT
DOWNTOWN OFFICE MARKETS Market
Q1 Quarterly Q4 Q1 Q1 Quarterly 2002
Change 2001 2002 2002 Change Vacancy
in Absorption Absorption Quoted in Rent Rate
(%) Vacancy (SF) (SF) Class (%) (%
points) A Rent ($PSF)
Atlanta,
GA 12.7 -0.6 (566,000) 600,000 22.70 (5.4) Boston,
MA 10.7 0.9 (814,000) (398,000) 51.40 (5.7)
Chicago,
IL 15.6 1.2 (1,291,000) (1,338,000) 34.00 (2.9) Dallas,
TX 23.7 0.9 (149,000) (331,000) 25.00 0.0 Denver,
CO 14.0 2.7 (451,000) (553,000) 24.95 (1.8)
Houston,
TX 12.4 1.7 (45,000) (686,000) 26.80 10.7 Los
Angeles, CA 18.9 0.1 321,000 (49,000) 24.60 0.0
Miami,
FL 11.4 2.2 42,000 (191,000) 28.40 2.2
New
York (Midtown),
NY 10.3 0.0 (768,000) 1,804,000 59.40 (3.1) New
York (Downtown),
NY 13.4 2.0 (1,438,000) (1,819,000) 41.10 (3.3) Philadelphia,
PA 13.7 1.6 (196,000) (667,000) 23.50 0.0 San
Francisco, CA 14.5 1.0 (831,000) (280,707) 39.00 (7.1)
San
Jose (Silicon Valley),
CA 11.0 2.3 104,000 (145,000) 48.24 (15.5) Seattle,
WA 12.7 -0.1 (299,000) 18,300 30.50 (1.0) St.
Louis, MO 15.0 1.1 (126,000) (127,000) 18.80 (3.6)
Washington,
DC 5.9 0.7 808,000 137,000 48.00 (2.0) SELECT
SUBURBAN OFFICE MARKETS Market
Q1 Quarterly Q4 Q1 Q1 Quarterly 2002
Change 2001 2002 2002 Change Vacancy
in Absorption Absorption Quoted in Rent Rate
(%) Vacancy (SF) (SF) Class (%) (%
points) A Rent ($PSF)
Atlanta,
GA 17.1 0.7 (477,000) 211,000 21.30 (11.3) Boston,
MA 21.8 1.6 (1,745,000) (493,000) 30.00 (7.7)
Chicago,
IL 18.4 1.7 (1,904,000) (1,498,000) 28.00 (3.4) Dallas,
TX 20.0 1.5 (1,512,000) (1,478,000) 23.50 0.0 Denver,
CO 17.0 1.2 (1,330,000) (145,000) 20.65 (4.0)
Houston,
TX 16.7 1.4 399,000 (1,814,000) 21.50 5.4 Los
Angeles, CA 15.7 1.5 (1,040,000) (1,164,700) 29.30 (3.3)
Miami,
FL 12.1 0.9 (55,000) (381,000) 27.60 (1.4)
New
Jersey (Northern)
11.5 0.4 (2,541,000) (650,000) 28.50 (5.0) Philadelphia,
PA 14.3 1.9 (243,000) (1,074,000) 25.00 0.0 San
Jose (Silicon Valley),
CA 11.7 1.1 1,139,000 (279,000) 37.08 (12.1) Seattle,
WA 17.0 1.1 (495,000) (180,000) 22.40 (0.9) St.
Louis, MO 12.2 0.4 282,000 191,000 24.50 0.0
Washington,
DC
(N. Virginia) 15.2 1.0 (2,903,000) 423,000 31.00 (8.8)
Source:
Colliers International PSF
= Per Square Foot ###############
########################################## ############ ------------------------------------------------------------------------------------------------------------ California
economy seen soaring over decade-forecast REUTERS SAN
FRANCISCO – High-tech industries will propel California out of
recession and help the world's fifth biggest economy gain jobs and
income at a faster clip than the rest of the nation over the next
decade, according to a forecast released Monday. While
California will do no better than the rest of the U.S. economy in
2002, a strong foundation in key industries like software, biotechnology
and entertainment will drive the state's economy in the next eight
years, said the annual forecast from the Center for the Continuing
Study of the California Economy, a private think-tank based in Palo
Alto, California. "Even
though job and income gains have stalled during the past year, the
state's economic strengths have not been hurt," said the report's
author Stephen Levy. The
forecast comes as the nation's most populous state faces a potential
$17 billion budget deficit stemming in part from the fallout from
a dot-com blowout and a staggering technology sector. But
the report said the high-tech slowdown is not a permanent one like
the aerospace decline that slammed the state's economy in the early
1990s – a scenario that indicates strong growth ahead for California.
"High
tech is in a down cycle, not a permanent decline and the long- term
prospects for high tech remain unchanged, i.e., very strong,"
the forecast said. The
report saw the state churning out 3.5 million additional jobs by 2010,
representing growth of 22.1 percent, compared with 15.2 percent nationally.
Personal
income will soar as well, rising 49.4 percent compared to 34.2 percent
in the rest of the nation, according to the forecast. But
California's population will also grow rapidly as the state adds 5
million more residents by 2010 – a 14.2 increase versus 8.2 percent
nationally that will strain an aging infrastructure, the report added.
California currently boasts some 34 million residents. This
population boom means officials need to build more houses, fix crumbling
roads and modernize aging schools in order to lure to California new
workers needed to drive the economy, the report said. "Our
biggest economic challenges are providing housing, transportation
and education for all Californians," Levy said. "Companies
demand this and residents require it also so that growth does not
diminish either our quality of life or economic competitiveness." (Doesn’t
feel that way now. 7.4% unemployment in Silicon Valley, “for
rent” signs everywhere. Can’t remember when I have seen
so many office vacancies or
apartment vacancies, and so many “homes for sale.” Prices
have not dropped,
and it is still expensive, but time will tell. editor ) P.S.
While Reuiters makes the above prediction, here is their reality: Reuters
announces 300 new job cuts, says first quarter revenues off PDT
LONDON (AP) -- Reuters
Group PLC also said yesterday it planned to eliminate 300 more jobs,
or about 1.6 percent of its work force, bringing the total number
of staff cuts at the news and financial information provider to 2,100. The
announcement by finance director David Grigson came as Reuters reported
that its first quarter revenue fell to $1.32 billion from $1.4 billion
during the same period last year. The
company said it did not anticipate an improvement in market conditions
soon, and predicted underlying subscription revenues would fall by
between 2 percent and 3 percent over the first half of 2002 and between
5 percent and 6 percent in the second half. "Our
first quarter revenue reflects the performance of the Reuters customer
segments in line with our expectations and significantly reduced revenues
in Instinet," said Reuters Group chief executive Tom Glocer,
referring to the company's electronic brokerage business. "Despite
challenging market conditions, we remain focused on margin enhancement,"
he added. Reuters
said that excluding Instinet, in which it owns an 83 percent stake,
its revenues were up 5 percent to $1.1 billion. Instinet's
revenues plunged 39 percent to $221 million compared with the first
quarter of 2001, when market volumes were booming, Reuters said. Instinet
is an electronic exchange that matches up buyers and sellers of stock
without middlemen. Its
poor showing is bad news for Reuters, as it had been a strong performer. Grigson
told analysts in a conference call that Reuters' cost-cutting efforts
were on track. "One
of the ways in which we are holding to our margin target is by managing
down the cost side," Glocer said. -------------------------------------------------------------------------------------------
Fed
chairman credits technology with helping business to adjust to economic
changes
By
Jeannine Aversa ASSOCIATED
PRESS WASHINGTON
– The country is emerging from what may be the mildest recession
on record, and Federal Reserve Chairman Alan Greenspan said Monday
that a lot of the credit goes to technology that allows businesses
to adjust quickly to changing economic conditions. Greenspan
said American economy, jolted by the Sept. 11 terror attacks, has
shown an "impressive ability" to withstand some hard knocks,
including a drop in the stock market and a sharp cutback in capital
spending by businesses, a key reason the economy fell into a slump.
Such
resilience likely reflected U.S. companies' use of computer and other
technology providing them with real-time information, Greenspan said.
That
information was used to help companies better respond to a changing
business climate, he said. For instance, moving to whittle stockpiles
of unsold goods at early signs of a slowdown, rather than adding to
them. "Doubtless,
the substantial improvement in the access of business decision-makers
to real-time information has played a key role," Greenspan said
in a speech delivered via satellite to the Institute of International
Finance in New York. A copy of his remarks was distributed in advance
in Washington. "Thirty
years ago, the timeliness of available information varied across companies
and industries, often resulting in differences in the speed and magnitude
of their responses to changing business conditions," the Fed
chief said. Against
such a backdrop, the process of fixing business problems – namely
getting inventories back in line with sales – was more drawn
out and pronounced, often leading to deep and prolonged recessions,
Greenspan said. "Today,
businesses have large quantities of data available virtually in real
time. As a consequence, although their ability to anticipate changes
in demand seems little improved, they nonetheless address and resolve
economic imbalances far more rapidly than in the past," Greenspan
said. He
made no mention in his speech or in a question-and-answer period afterward
about the future course of interest rate policy. To
rescue the economy from a recession, the Fed slashed interest rates
11 times last year. Fed policy-makers held short-term rates –
now at 40-year lows – steady in January and March. Given the
fledging economic recovery, most economists believe the Fed will continue
to leave rates unchanged when its meets next on May 7. After
shrinking in the third quarter of 2001, the economy bounced back in
the following quarter, growing at a rate of 1.7 percent, a stronger
but still below-par performance. Many
economists believe the economy, as measured by the gross domestic
product, grew at a sizzling 5 percent rate in the first quarter of
this year, boosted in large part by a slowdown in inventory liquidation
by businesses. The government releases the GDP report Friday. Greenspan,
during the question-and-answer period, indicated there has been some
improvement in capital spending, a key ingredient for the economy's
health. "We're seeing the early signs of a recovery in capital
investment," he said. On
other matters, Greenspan renewed his concerns about lower-cost financing
and other government subsidies enjoyed by "government- sponsored
enterprises," such as giant mortgage companies Fannie Mae and
Freddie Mac. "Subsidies,
by intent, distort the normal balance of markets," Greenspan
said. Fannie
Mae and Freddie Mac are owned by stockholders but were created by
Congress to buy home loans from lenders to supply ready cash to the
mortgage market. Critics
contend that they have become so big that they pose potential risks
to taxpayers, who might be asked to bail them out if they become financially
troubled. Addressing
the largest corporate bankruptcy in U.S. history, Greenspan repeated
his belief that although Enron Corp. was a major player in the sophisticated
derivatives market, the reason behind the energy giant's downfall
was more basic: "an old-fashioned excess of debt."
----
Increased
spending by business could soon help the nation emerge from what many
experts consider the mildest recession on record, Federal Reserve
Chairman Alan Greenspan said. Greenspan,
in a speech Monday delivered via satellite to the Institute of International
Finance in New York, said, said that ''we're seeing the early signs
of a recovery in capital investment.'' Such
an infusion into the economy is important because consumer spending
on such big ticket items as cars and homes did not abate during the
economic downturn that officially became a recession in March 2001,
Greenspan said. ''It
is left for capital investment to carry this economy forward,'' he
said. Greenspan
said the American economy is showing an ''impressive ability'' to
withstand the stock market decline, the Sept. 11 attacks and a sharp
cutback in capital spending. The
comeback likely reflects U.S. companies' use of computer and other
technology that provides them with real-time information allowing
them to respond rapidly to changing business conditions, Greenspan
said. For
example, companies can now quickly whittle stockpiles of unsold goods
at early signs of a slowdown, rather than adding to them. ''Doubtless,
the substantial improvement in the access of business decision-makers
to real-time information has played a key role,'' Greenspan said.
Decades
ago, that type of information varied widely depending on the companies
and industries, resulting in widely different reactions to changing
business conditions, he said. Against
such a backdrop, the process of fixing business problems namely getting
inventories back in line with sales was more drawn out and pronounced,
often leading to deep and prolonged recessions, Greenspan said. ''Today,
businesses have large quantities of data available virtually in real
time. As a consequence, although their ability to anticipate changes
in demand seems little improved, they nonetheless address and resolve
economic imbalances far more rapidly than in the past,'' Greenspan
said. He
made no mention in his speech or in a question-and-answer period afterward
about the future course of interest rate policy. To
rescue the economy from a recession, the Fed slashed interest rates
11 times last year. Fed policy-makers held short-term rates now at
40-year lows steady in January and March. Given the fledging economic
recovery, most economists believe the Fed will continue to leave rates
unchanged when its meets next on May 7. After
shrinking in the third quarter of 2001, the economy bounced back in
the following quarter, growing at a rate of 1.7 percent, a stronger
but still below-par performance. Many
economists believe the economy, as measured by the gross domestic
product, grew at a sizzling 5 percent rate in the first quarter of
this year, boosted in large part by a slowdown in inventory liquidation
by businesses. The government releases the GDP report Friday. Greenspan
renewed his concerns about lower-cost financing and other government
subsidies enjoyed by ''government-sponsored enterprises,'' such as
giant mortgage companies Fannie Mae and Freddie Mac. ''Subsidies,
by intent, distort the normal balance of markets,'' Greenspan said.
Fannie
Mae and Freddie Mac are owned by stockholders but were created by
Congress to buy home loans from lenders to supply ready cash to the
mortgage market. Critics
contend that they have become so big that they pose potential risks
to taxpayers, who might be asked to bail them out if they become financially
troubled. Addressing
the largest corporate bankruptcy in U.S. history, Greenspan repeated
his belief that although Enron Corp. was a major player in the sophisticated
derivatives market, the reason behind the energy giant's downfall
was more basic: ''an old- fashioned excess of debt.'' On
the Net: Federal
Reserve: http://www.federalreserve.gov ________________________________________________________________________ Consumer
Debt At An All Time High High
Credit Card Interest Rates Costing Americans Thousands Of Dollars
Each Year “Last
year, Americans charged more than 1 TRILLION dollars on their credit
cards - that works out to 10 thousand dollars per cardholder. This
means the average American credit card holder paid about two thousand
dollars in credit card interest last year, without touching the principal.
That's a lot of money, and the reason why financial experts say it's
smart to get rid of credit card debt. “ A
mortgage re-financing “infomercial” began. The only problem,
historically consumer re-finance,
but instead of taking care of credit card debt, they spend the money.
We are
still a consumption based rather than “thrift” based society. -------------------------------------------------------------------------------------------------------- Pop-Up
Killers There
are several versions of software that prevents pop-up advertising,
particularly in Explorer. After being subjected to multiple pop-ups,
some even
leave an icon for future downloading that are difficult to delete,
we searched
for a program to prevent it. http://www.americanleasing.com/exe/PopUpStopper26.exe The
above is a “free version.” You can up-grade for $20 a year.
There are other
such programs. Depending on your version and/or alterations of Explorer,
this one stops the overwhelming majority. Here
is a “lite” version, and free, too: http://downloads-zdnet.com.com/3000-2366-10024312.html Some
of them are better, not only saving bandwidth, preventing cookies being
placed on your computer, but stop them all. Here is a list of other
“pop-up killers”. $18.95
http://www.adsgone.com/ $24.95
http://www.meaya.com/ $29.95
http://www.exitkiller.com/ If
you find a really good one that blocks them all, please le us know. -------------------------------------------------------------------------------------- Stress
Release. http://www.americanleasing.com/exe/StressRelief.EXE ---------------------------------------------------------------------------------- Opera This
continues to be the browser of choice for speed. It is a lot faster
than Explorer
or Netscape. It now has java, and other features. It is fast, and may
not have the “bells” and “whistles” of Explorer,
but when it comes to navigation
and less problems, use “Opera”. http://www.opera.com/ ---------------------------------------------------------------------------------------------------- Library
Research from Home
Gale Group Database
great information available with the use of your library card.
http://www.library.ci.santa-clara.ca.us/about-the-library/borrower.html#library%20cards
( Your library card has a code on it. Remember how your
library card name is issued, as that is your log in.
You also have to add a browser setting, and going here
will tell you:
http://www.library.ci.santa-clara.ca.us/research/remote.html Not
only do you have the library system, but groups of search engines and
other means to find out almost anything you want to know that is
written. ________________________________________________________________________ Recruiter
Teri Gerson does not agree with Recruiter Fred St. Laurent
Name = Teri Gerson
Address = 1141 Minisink Way
City = Westfield
State = NJ
Zipcode = 07090-3726
Phone = 908.654.1550
Fax = 908.654.1553
Comments = I read Fred St. Laurent's comments with appreciation for
his compliments and some concern over a few of his points. Let me
reply. First, I don't agree that recruiters are glorified HR people
or that we have let ourselves forget what our goals are. I guess
I should clarify that this is not the case in my company. An HR person
reads a resume, often doesn't have a comprehensive understanding of
either leasing or the specific requirements, and in many cases, doesn't
know the Hiring Manager. As professional recruiters, we do. Secondly,
screening resumes is certainly a part of what we do, and often a very
time consuming one. But our role goes far beyond that. We compare
current to past resumes augmented by our very comprehensive database.
We speak to people. We read between the lines. As I mentioned previously,
it is only a beginning step, not the final one. We do not use Job
boards, internet sites (other than our own) or any intermediaries.
We do it the old fashioned way. We recruit. Which means we source,
screen, prepare, facilitate, close, and monitor. All the way from
A to Z. We don't "cooperate" with competitors who are having
trouble filling slots by providing them with our Talent. We stand
on our own merits and accomplishments and expect others to succeed
or fail based on their own particular skills and techniques. I
also must disagree with Fred's comments that Hiring Managers either
know what we do or don't care. I believe a professional tells a client
what the professional feels the client needs to have clarified based
on each circumstance. Not all Hiring Managers have been in hiring
positions before, or have worked with recruiters, or, for that matter,
have worked with good recruiters. If one makes the assumption the
buying public already knows everything they need to know about products,
then we should all just sit and wait for our phones to ring. Communication,
strategizing, and sharing ideas is the very foundation of a client/recruiter
relationship. We educate our clients all the time, and because we
are experts in our field, the smart ones listen to our perspective
before making decisions. In return, they educate us as to their particular
value-added products, services, and strategies. Of course people
need jobs. Of course they will network and blanket the industry with
their resumes. But a candidate properly screened and UNDERSTOOD,
who is presented by a recruiter, usually gets a lot further than one
who's resume sits in a very large pile. We sell our candidates and
share our questions about them. No resume can replace that. A good
HR team does lots of things besides recruiting. They handle HR matters.
They prioritize in many cases based on the squeaky wheel Hiring Manager.
They frequently have no conversations with many of the folks they
eliminate, and when they do, can't possibly derive as much "behind
the scenes" info as a recruiter. Of course, we find the Great
candidate. But we've always been doing that. Recruiting has many
facets. There is not always a "great" person out there.
The Hiring company is not always able to entice them. Sometimes,
the position doesn't require it. Sometimes we bring in the superstar.
But always, we should understand what the client needs and solve their
problems. This includes knowing them well enough that when we spot
that Super Star, we know who could! d
use their talents and where they would fit in the best. The ability
to do this is significantly augmented by the deep, ongoing relationship
that evolves and strengthens over years of working with companies
and truly knowing them. Many people with perfect skill sets fail
miserably at companies while those who really shouldn't have succeeded
do. There is the chemistry element. If a recruiter knows the company,
the personalities and styles of the managers, and the corporate culture,
and takes the time to delve into the candidate's goals (short and
long term) and learn what they need, want, fear, and crave, then we
can reduce the risk of bad chemistry matches. I
do wholeheartedly agree with Fred's statement about not reducing fees.
If professional recruiters believe in what they do AND DO IT WELL,
then they earn the fee they charge. People may say they buy based
on price, but that is rarely true. They buy based on what they need,
what they want, and results delivered. Asking a client if they are
willing to accept a mediocre person so save a few thousand dollars
is unlikely to receive a "yes" answer. If it does, it isn't
a client we are prepared to partner with. Reducing fees simply says
we are overpriced in the first place, or that other areas companies
allocate their funds to are more deserving. I, for one, believe "IT'S
ABOUT THE PEOPLE" and nothing is more important. Not technology,
not process, and not product. Without Talent, no one can implement
or deliver any of these things. I
agree again with Fred that we help clients to upgrade their Talent.
But what we do is so multi-dimensional and responsive to what clients
need it is impossible to focus only on recruiting away a competitor's
Talent, although, it IS an effective and critical aspect of our services.
It's the part I personally love the most! ------------------------------------------------------------------------------------------------------------ ##
########################################## Pomeroy
Computer Resources Closes Asset Sale of Leasing Division Pomeroy Computer Resources, Inc. (NASDAQ:PMRY), announces the closing of the sale of a majority of the net assets of its wholly owned subsidiary -- Technology Information Financial Services, (T.I.F.S.) -- to Information Leasing Corporation (ILC), the leasing division of The Provident Bank of Cincinnati, Ohio. The terms of the sale were announced on February 28, 2002.
###
########################################### BancPartners
Announces New Bank Affiliations in Georgia, Tennessee, and Florida
BPL-BancPartners
Leasing Inc. announced Monday that it had signed licensing agreements
with the Northwest Georgia Bank of Ringgold, GA, Farmers and Merchants
Bank in Clarksville, TN, and the First National Bank of Crestview,
FL. BancPartners
offers a comprehensive, turnkey, private label equipment leasing program
to community banks. This program allows banks to begin offering equipment
leasing as a financing option for bank customers with little additional
risk or overhead. Warren Hawkins, CEO of BancPartners commented, “We are pleased to add these three new banks to our program. They are all high quality banks with excellent reputations in their respective communities.” BancPartners’
Leasing Corporation is one of the largest independent leasing companies
in the Southeast and Southwest U.S. with program banks in Texas, Alabama,
Tennessee, Florida, and Georgia. Its private label leasing program
is one of the most comprehensive programs offered to community banks.
BancPartners’ can be found on the Internet at www.bancpartners.com. ###
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################################################ American
Express---Back in the Winner’s Circle!!!! ####
################################## ########################
Behind
American Express' $4 Billion Outsourcing Bet by
Esther Shein CIN : In
this in-depth CIN interview, Amex's CIO Glen Salow tells why his company
is handing over much of its IT operations to IBM and he details additional
tech strategies helping the financial services giant. American Express recently made headlines
when it announced
a seven-year, $4 billion deal to outsource a large portion of its
data operations to IBM - one of the biggest deals of its kind. In
this interview with CIN, Amex's executive vice president and CIO Glen
Salow details the company's strategy, why it chose IBM, what benefits
it expects, tips for good vendor relationships and other key issues
he faces running IT at one of the world's largest financial service
brands. Q:
What prompted American Express to outsource the bulk of its technology
operations? So in
January 2001 we asked that question and over the past 15 months we've
been evaluating the answers and the ultimate answer was we could create
better economics for the company, greater flexibility for the company,
faster time to market, and higher quality service for our customers
while offering a large number of employees a new and interesting career
path by making this decision. Q:
Did IBM come to you or did you go to them? Q:
What makes it more cost effective if employees are being transferred
to IBM? Were any other consultants looked at, and why was IBM ultimately
chosen? If you
take the hardware and software categories, although we're a major
buyer of software and hardware, IBM buys at a larger scale than we
do and they can get better acquisition economics. Number
two is, because IBM does this for many, many companies, when new advances
come in hardware or software or processes, IBM rapidly becomes the
expert in how to do it and make it happen faster than we can. The third
reason has to do with macroeconomics: if you think about the electricity
problems in California, the problem is not that they don't have adequate
electricity generation, it's that they don't have enough for peak
demand. The difference between average and peak demand creates inefficiency
[because] I have to maintain capacity for peak even though most of
the time I'm running at average, and that's costly to maintain. When
you get IBM--which can take a bunch of companies and average peak
demand and average them out--you get a more efficient consumption
process. The last
point is, if we have 2,000 people and they have 2,000 people can you
really be more economical? Obviously you can't. What will happen over
time is IBM will move some of those people to other accounts as they
improve the processes they use to support our account. From IBM's
perspective, that's a very efficient way to recruit people. IBM Global
Services is a rapidly growing business and one of the principal challenges
is recruiting quality people fast enough. Over time they'll improve
the processes they use to support our account, creating the ability
to move people to other accounts. It creates a win-win because our
people now move to a company where what they do is the main line of
the company and they'll have very interesting career opportunities.
We displaced
14 people [as a result of the deal.] They have an opportunity to try
and find another position in American Express. By and large they were
people doing some contract administration work and that work wasn't
necessary any longer. [Note: Salow declined to discuss what other
companies they considered before selecting IBM.] Q:
What specific areas of IT will IBM be handling, and what did you opt
to leave in-house? What
we out-tasked: our data center operation, which includes big mainframes
as well as our midrange processors. Our PC support groups and the
technology help desk -- not the one that our customers call but the
internal help desk. Web hosting is part of the deal. Application development
for all our Web functions we retained. If you think about how you
create value with technology, it's in choosing the right things to
do and develop them appropriately, then you have to operate those
at an incredibly high level of quality. The first part is what we
kept and the second part is what we are partnering with IBM to do.
So we
retained all the architecture and standards and we retained all the
SLAs [service level agreements] and IBM operates within that framework
to deliver our capabilities. The strategic things we keep and governance
we keep; the tactical things they do for us. It's
a seven-year deal with an option to renew for another three. There
are extensive service level agreements as well as other metrics that
we will monitor and a set of expectations along the way, including
performance and pricing. Q:
I know the transfer of 2,000 technology staff just began, but how
is the transition going? How many people remain internally in IT? Q:
What are the ingredients of a good vendor relationship? Less
than five other companies were looked at [by American Express]. So
having that kind of history was helpful ... What I don't want to do
is do a deal with someone who doesn't want to do business with me
in the future because they'd be less motivated to keep me happy. Because
we know them we have pretty good insight into their culture and how
they treat their people. IBM realizes,
especially in the global services business, that people in many ways
are their product and they need to treat them extremely well and treat
them like customers. Their annual turnover is absolutely world class
in how they treat their people. The acid test is how many people leave
each year. Their attrition rate is about the same as ours and both
of ours are frankly about 50 percent better than the industry benchmark,
which I think is today around 15-16 percent. They do a very good job
of retaining their people and so do we, and when we looked at why
and how, we felt the two companies look at our employees in a very
similar fashion. Q:
What else is occupying the bulk of your attention these days? Q:
Whom do you report to and what goals have been set by you or upper
management for this year? Q:
Is more money being spent for network security this year? Q:
Which of your skills has served you best in managing IT? Q:
What advice would you give someone looking to advance their career
the same way you have? Number
two would be that if you think of things in terms of either/or, you're
going to limit yourself and you need to think of things as both/and
rather than either/or. In technology we were raised on binary--it's
black or it's white, it's yes or it's no, but the reality is, to meet
the needs of the consumer, the shareholder and your employees you
have to learn to create solutions that find an appropriate middle
ground. The last
thing I'd say is, find a few core architecture standards and stick
by them, such as a component-based architecture [which is what we
use] because it really enables us to be on time to market and it's
incredibly important. That may not be right for every company but
pick your architecture and commit to it. Q:
What keeps you awake at night? Q.
What do you do in your spare time? Esther
Shein is a freelance writer and editor in Framingham, Mass. She can
be reached at eshein@rcn.com.
Editor's
note: Are you a CIO or other enterprise IT executive who is willing
to be profiled? Or would you like to suggest someone to be profiled?
Send your suggestion via e-mail to CIN Senior Editor David Aponovich
at CIN@Earthweb.com. Credit
Raters Get Scrutiny and Possibly a Competitor By
LESLIE WAYNE—New York Times For
years, Sean J. Egan has been trying to crack the cartel consisting
of Moody's Investors Service Inc., Standard & Poor's and Fitch
Ratings, credit-ratings agencies with quasi-government authority and
enormous global influence. Mr.
Egan, who runs a much smaller credit analysis firm in suburban Philadelphia,
maintains that his judgment calls have been just as good — if
not better — than those of the Big Three. But his pleas have
been largely ignored by the Securities and Exchange Commission, which
regulates credit agencies, and the marketplace has continued to confer
rich margins on his competition. But
now, in the wake of Enron, Mr. Egan may at last get his hearing before
the S.E.C., if not some satisfaction. Already,
the ratings agencies, which pass judgment on the financial health
of companies and evaluate trillions of dollars in debt securities,
have been hauled before Congress to explain why they failed to warn
investors about Enron's problems. Spurred
on by that Congressional concern, the S.E.C. has announced that it
will begin hearings on the industry — including the regulations
that have limited the business of debt rating to an oligopoly of three. "We
want to understand the whole rating organization industry and it's
operations," said Isaac C. Hunt Jr., an S.E.C. commissioner.
"This is something we haven't re-examined in a long, long time." Among
the topics that the S.E.C. plans to review are the economic barriers
to entry, whether new consulting businesses started by some ratings
agencies raise conflict of interest issues and whether the current
regulatory system should be scrapped entirely and replaced with something
else. For
Mr. Egan, the re-examination is long overdue. Since 1998, Mr. Egan's
company, the Egan-Jones Ratings Company, has been seeking the S.E.C.
designation needed to give his ratings a government stamp of approval.
That designation would give his opinions the same standing in the
debt markets as those from Moody's or S.& P., allowing him to
expand beyond his current business of providing ratings only to a
group of private clients. At
the moment, Mr. Egan says he is in a Catch-22. The S.E.C. has rejected
his application because he lacks a large enough staff. But he says
he cannot expand his business until he gets the S.E.C. designation. "First
they wouldn't return our phone calls, and after that they basically
indicated they wanted us to become bigger," Mr. Egan said of
his dealings with the S.E.C. In
1975, in the wake of the default of the Penn Central Corporation,
the S.E.C. set out criteria for what it termed Nationally Recognized
Statistical Rating Organizations. The goal was to prevent unscrupulous
companies from selling triple-A ratings to the highest bidder, but
the practical effect has been to create an oligopoly protecting Moody's,
S.& P. and Fitch while keeping others, like Mr. Egan's firm, out. Critics
say that the arrangement has allowed the agencies to become enormously
profitable while shielding them from the consequences of bad calls. "These
guys don't face any competition," said Lawrence J. White, a professor
of economics at the Stern School of Business of New York University.
"They don't have to worry if someone else is asking harder questions
or breaking the news. They are protected from the fresh winds of competitions.
There are only three, and their small number makes them powerful." Leo
C. O'Neill, the president of S.& P., a unit of the McGraw-Hill
Companies, said that he had nothing to fear from new competitors.
"The fact investors use us speaks for itself," he said.
"They would not use ratings if the quality was not outstanding.
We survey investors frequently, formally and informally. They are
pleased with what we do. I'll stand by that." None
of the three — Moody's and S.& P. are the largest and Fitch
is a distant third — disclose much of the thinking behind their
ratings decisions, like the questions that companies refuse to answer
or the information used to reach conclusions about a company's health.
They are also exempt from the S.E.C.'s rules on corporate disclosure,
meaning that corporations can give them sensitive information without
having to share it with other market analysts. Moreover,
the ratings agencies have some of the same protections that news organizations
enjoy under the First Amendment. As a result, nearly every time they
have been sued by disgruntled investors over a call gone bad, they
have invoked their free speech protections to prevail in court. So
far, the S.E.C. has not said when it will begin its examination, let
alone predicted where it will lead. One possible outcome is that others
will be given the Nationally Recognized Statistical Rating Organizations
designation; another is that the designation could be eliminated entirely,
leaving the market to decide whose credit analyses are good and whose
are not. One
thing is clear: Gaining a government designation as a rating agency
is like getting a winning lottery ticket. "Moody's
and S.& P. are the closest thing to the regulators handing a company
a free pass at a corporate A.T.M. machine," said Glenn L. Reynolds,
chief executive of CreditSights Inc., a provider of investment analysis
for institutional investors. Only
one of the three, Moody's, is publicly traded. Its financial statements
provide a window into a business in which S.& P. has a 41 percent
market share, Moody's has a 38 percent market share and Fitch has
most of the remainder. With
no investment in costly plant and equipment and minimal debt, Moody's
profit margins are 50 percent. So it is not surprising that investors
have flocked to Moody's stock, which is up more than 33 percent in
the last year. The buyers have included Warren E. Buffett, whose Berkshire
Hathaway owns 15 percent of the company. "Moody's
is the best franchise I've ever covered in my 20 years on Wall Street,"
said Kevin R. Gruneich, an analyst at Bear, Stearns. "These companies
are not capital intensive and the macro trends for them are pretty
awesome." He
estimates that S.& P., a more diversified company than Moody's,
has margins of a lower, but still enviable, 30 percent. "The
wind is at their backs," Mr. Gruneich said of the Big Three. Critics,
however, look at these numbers and question what the investing public
is getting in return. Over the years, they note, the agencies have
missed a lot of big calls, from failing to sound the alarm on New
York's debt crisis in the mid-1970's, to the bankruptcy of Orange
County, Calif., 20 years later to the rot at Enron. Last
fall, when most of the bad news about Enron was public and the company's
stock was trading at $3 a share, all three agencies maintained Enron's
investment-grade status. Critics in Congress have focused on calls
that the agencies received from Wall Street bankers, who were worried
that a downgrade would jeopardize their loans to Enron. When the downgrading
finally came, it began the process that drove the company into bankruptcy
court. "Their
performance on Enron was abysmal," said Frank Partnoy, a professor
at the University of San Diego law school and an expert on credit
risk. "Based on the information available, they should have asked
Enron hard questions months and months earlier. The ratings agency
didn't even make the basic level of inquiry that you would have expected
of responsible, sophisticated investors. A group of investors could
have performed the same service as the ratings agency, simply by reading
the newspaper." The
ratings agencies say that they were defrauded by Enron executives
who lied to them, and that they were blindsided like everyone else.
"Enron was truly an anomaly," said Fran Laserson, a spokeswoman
for Moody's. "By and large, investors believe we do a good job
at what we do." Such
self-congratulatory talk aside, some say that the industry's batting
average will improve only through competition. That is certainly Mr.
Egan's argument. "On
Enron, we were way ahead of Moody's and S.& P.," said Mr.
Egan, who downgraded Enron's debt a month before the other agencies.
"We argue the ratings firms have fallen far short of protecting
investors. Hopefully Enron will get Washington to review the rules." #############
################################################### Access
National Bank Acquires Commercial Finance Corp.
Commercial
Finance Corporation has become a wholly-owned subsidiary of Access
National Bank and will begin operating as Access National Leasing
Corporation. Established
in 1987, CFC has a distinguished track record of providing commercial
and industrial lease financing to middle market companies throughout
the Washington Region. In 2001, CFC provided approximately $10 According
to Access CEO Mike Clarke, “We are privileged to have the professionals
of CFC on our team. This is a win-win deal where everyone benefits.
We have committed capital that will enable this first class leasing
operation to grow as well as enhance its ability to serve the local
middle market.” He continued:
“We have taken a next important step in the development of our
suite of services that make Access ‘The CFO’s Best Friend’.
We aim to This
is the second acquisition by the 2 ½ year old Bank in executing its
business strategy. The first acquisition was consummated in 1999 when
it As of
December 31, 2001, the Bank reported total assets of $132 million
and its mortgage subsidiary provided $409 million in residential mortgage
loans that fiscal year. For additional
Information: Michael
Clarke, President John
(Jed) Fochtman, President Michael
Rebibo, President #############
############################################## Patriot
Bank Corp. Announces First Quarter 2002 Earnings Up 33%
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