August 20, 2001




  BancLease Announces On-Site Training Program

   Leading indicators rise for fourth straight month, hinting at stronger economy

     Bloomberg Predicts  The Fed to Cut Prime Rate for a Seventh Time

       Duane Russell Drives a 1964 Mercedes Unimog 404.114



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BancLease Announces On-Site Training Program





 Leasing consultancy brings industry lauded


training program to bankers at the branch


BancLease, a leasing consulting service for community banks, announced that it will now offer its two-day lease training seminar to its bank customers at their location.


In an effort to help its customers defer cost and train multiple members of the banks' lending staff, BancLease will send a leasing consultant to the customer site to teach new customers marketing techniques for leasing. The training will also detail how to complete the necessary leasing forms and submission regulations, as well as basic software introductions relating to beginning and maintaining successful leasing programs and the BancLease software suite.


"The BancLease program was designed by bankers," said Don Burnett, president of BancLease. "We understand the importance of cost-effectiveness when implementing new banking products. Although we have a first class training facility at our Charleston, Mo. headquarters, we can send one of our key consultants to our customers' institutions and have them train ten lenders for half the expense of the customer sending two lender officers to our offices for the same session."


First Security State Bank in Charleston, Mo. first introduced BancLease to the market in 1987. The bank, which is located in predominantly an agricultural area with a declining population and little growth potential, realized that it needed to offer a product that could give them a competitive advantage and increase profit; hence, the bank developed its own leasing program, now known as BancLease.


The BancLease program gives banks with the ability to quote lease payments to customers (and yields to the bank), to prepare of all necessary leasing documents, print amortization schedules, calculate after tax yields, e-mail documents to branches capability, calculation of irregular (flexible) payment leases plus a database for saving lease quotes. Complete installation of the BancLease software takes less than five minutes.


Gifford State Bank In Gifford, Ill. with assets of $60 million has been a customer of BancLease for two years. "Leases can be a business owner and a lending executives best friend," said Cory Mitchell, vice president of Agri-Business for Gifford State Bank. "Leases conserve cash and offer 100 percent tax deductibility for businesses. Our customers deserve that option. When we decided to become a true full-service financial institution and offer a competitive leasing program, we chose the BancLease product. BancLease was immediately at our offices with the software and necessary training to make our transition seamless and worked with our lending staff to actually help process our first round of leases."


About BancLease


BancLease is a lease consulting service for bankers that was created by First Security State Bank in Charleston, Mo. in 1987. It was designed to help other community banks interested in developing an in-house leasing program. The program provides a turnkey solution that allows banks to lease equipment for commercial, agricultural, and municipal customers and includes software, operating manuals, sample policy, telephone support system, and on-site sales training.


Today, more than 190 banks in 34 different states are using the BancLease program for leasing. For more information about the BancLease solution, contact Britt McConnell at 800.530.5327; write P.O. Box 1526, Sikeston, Mo. 63801 or visit its Web site at


Editors note: Mr. Cory Mitchell can be reached by writing 304 South Main Street, Gifford State Bank, Gifford, Illinois or by calling 217.567.7311. Visit its Web site at






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Leading indicators rise for fourth straight month, hinting at stronger economy



By Lisi De Bourbon



NEW YORK – A key gauge of future U.S. economic activity crept higher for the fourth straight month in July, suggesting that some improvement may lie ahead for the economy.

The New York-based Conference board said Monday its Index of Leading Economic Indicators rose 0.3 percent to 109.9, the same amount it rose in June.

Analysts expected a 0.1 percent increase.

"The signal from the ... index, in terms of its depth and breadth, is that economic conditions, sluggish through the entire first half of the year, could begin to make way for a better economy this fall," said Conference Board economist Kenneth Goldstein.

The markets were higher following the release of the report. In midday trading, the Dow Jones industrial average was up 58 points to 10,298, while the Nasdaq composite index rose 7 points to 1,874.

The index is closely watched because it indicates where the overall U.S. economy is headed in the next three to six months. It stood at 100 in 1996, its base year.

The U.S. economy has been besieged over the past year by anemic corporate earnings, plunging stock prices, massive layoffs and a downward spiral in the manufacturing sector.

In an effort to prevent the economy from slipping into a recession, the Federal Reserve has slashed interest rates six times so far this year. The Fed is widely expected to make another quarter percentage point cut when it meets Tuesday.

The central bank's aggressive rate-cutting campaign and an improvement in consumer expectations were among the factors that helped push the index higher last month, analysts said.

"That means the easing of monetary policy has saturated the economy with cash, which can be used as fuel for an economic rebound," said Sung Won Sohn, chief economist at Wells Fargo & Co. in Minneapolis.

Sohn also said he anticipates that the recent federal income tax rate cut and refunds will provide another boost to the economy.

Consumer spending, which accounts for two-thirds of all economic activity, has managed to hold up well during the economic slowdown and is one of the forces that has prevented the economy from tipping into recession, economists say.

"The tax cut will have a very significant impact on consumer spending," Sohn said. "The consumer will not only spend the rebate, but also use it as leverage to borrow."

Five of the 10 components of the leading indicators rose last month, the Conference Board said, including money supply, interest rate spread and consumer expectations.

Average weekly initial claims for unemployment insurance and average weekly manufacturing hours also increased. However, stock prices, building permits, and vendor performance decreased.

Manufacturers' new orders for nondefense capital goods and manufacturers' new orders for consumer goods and materials held steady for the month of July.

The group's index of coincident indicators, which measures current economic activity, edged up 0.1 percent in July to 116.3. The index of lagging indicators, which reflect changes that have already occurred, decreased 0.7 percent to 104.7.

The Conference Board is a nonprofit research and business group, with more than 2,700 corporate and other members around the world.



Fed Seen Cutting Benchmark Rate for a Seventh Time


By Michael McKee, Bloomberg


Federal Reserve policy makers are likely to lower the overnight bank lending rate to a seven-year low of 3.5 percent to provide a spark for the sluggish U.S. economy.


In cutting rates for a seventh time since Jan. 3, Fed Chairman Alan Greenspan and the other nine voting members of the policy-setting Open Market Committee also may signal that additional reductions are possible if growth doesn't pick up soon.

"The Fed is still watching the data for any signs of a bottom," said Nancy Roman, an economist at the G-7 Group in Washington. Central bankers "will remain on the offensive until they see the economy turn up."


Business investment in equipment and software has declined for three straight quarters, the first time that's happened since 1982-1983. As a result, manufacturers have been cutting production in an effort to reduce inventories.


Compaq Computer, the No. 2 manufacturer of personal computers, said last month it has reduced its factory inventory by $300 million and a further $400 million at distributors in the quarter. That brings the total reduction to $1 billion in the first half of the year. Compaq is planning to cut stockpiles by $200 million more at distributors in the second half.


Some company forecasts suggest demand for business equipment won't be picking up before the end of the year. Cisco Systems, the largest maker of computer networking equipment, says sales will be little changed or fall 5 percent in the quarter that ends in October.


Of 78 economists surveyed by Bloomberg News, 76 forecast a quarter-percentage-point reduction in the overnight rate tomorrow from its current 3.75 percent. Only two said they expect the central bank will leave rates unchanged.

The Open Market Committee has already lowered the benchmark rate by 2 3/4 percentage points, from 6.5 percent at the start of the year. Tomorrow's FOMC meeting begins at 9 a.m. Washington time with an announcement expected at about 2:15 p.m.


The economy expanded at just a 0.7 percent annual rate in the second quarter, the weakest in more than eight years, according to preliminary Commerce Department figures. Analysts say revisions due at the end of this month will probably show an even slower pace of growth - and possibly that the economy contracted for the first time since the first quarter of 1992.

The FOMC has been trying to counter that slowdown with the most aggressive round of rate reductions in 19 years. If the Fed does as expected, the overnight rate will fall to the lowest since April 1994.


So far, the effect of the rate cuts has been largely psychological. Measures of consumer confidence has begun to rise after falling to five-year lows in February and April. That's helped give a lift to spending. Retail sales excluding automobiles rose in three of the past four months.


Auto sales have been supported by the biggest incentives and rebate programs in history, averaging over $2,000 per vehicle in early August. That's helped boost car and truck production, the only bright spot for U.S. manufacturers. Lower interest rates haven't spurred orders to manufacturers or production, and factories have been in yearlong slump.  While manufacturing production was unchanged in July after nine months of decline, almost all of it was due to a short-term surge at automakers.


"There is no sign of a bottom here," said Scott Brown, an economist at Raymond James & Associates in St. Petersburg, Florida. "We're still seeing declines in production, and it's likely we will see the weakness continue for at least a few more months."


The Fed's own survey of regional economic conditions found growth was stagnant at best in most parts of the U.S. during June and July. "Sustained weakness in the manufacturing sector spilled over to other businesses," the Fed said in its beige book report.


"Reports from most Federal Reserve districts point to slow growth or lateral movement in economic activity," the anecdotal survey said.

Since the beige book was released Aug. 8, analysts have been marking down their growth forecasts for the third and fourth quarters, and for next year. Lehman Brothers economists anticipate the economy expanded just 1.3 percent in the current quarter.


"The Fed has some more work to do," said Ethan Harris, chief economist at Lehman Brothers. "The beige book should dispel any doubts that additional Fed easing on Aug. 21 will be necessary."


Fed officials have stressed that because changes in interest- rate policy take many months to filter through the economy, the effects of the earliest reductions this year should only now be starting to be felt.

Some companies are beginning to see a light at the end of the tunnel. Chipmakers Intel Corp. and Texas Instruments Inc. said some customers have lowered inventories of components, and the two expect orders to rise.


The semiconductor industry "has bottomed out," said Craig Barrett, chief executive of Intel, earlier this month during a press conference in Penang, Malaysia. Intel expects the computer industry to rebound in the third and fourth quarters, driven by back-to-school and holiday sales.


Orders from wireless customers have been rising at Texas Instruments, Chief Financial Officer William A. Aylesworth said last month. The Dallas company's chips run two-thirds of the world's cellular phones.


There are hopeful signs in some recent economic data. The unemployment rate has remained at about 4.5 percent for the past four months, even as companies announced thousands of job cuts over the same period.


U.S. sales of new single-family homes rose 1.7 percent in June to 922,000 units at an annual pace, the highest level in three months, boosted by mortgage rates that are more than 1 percentage point lower than the same time last year.


"Demand is so strong that we aren't able to keep up with construction," said David Weiss, chief financial officer at Beazer Homes, the Atlanta-based builder with a record number of homes ordered but not yet completed.


Because of that, however, some analysts said additional Fed rate reductions may provide less of a lift than might otherwise be expected. "The interest-rate sensitive sectors of the economy were never that depressed in the first place," said Bill Dudley, chief economist at Goldman Sachs & Co. in New York.

Without the additional boost, the Fed may decide to lower the overnight bank rate to 3 percent by early next year, he said.


Trading in federal funds futures contracts suggests policy makers probably won't reduce the overnight rate much further. The implied yield on the December federal funds futures contract is 3.25 percent, a half percentage point below the current rate and a quarter point below where it's likely to be after tomorrow's Fed meeting.




                                          Duane Russell


I drive a Mercedes!!


A 1964 Unimog 404.114 built by Mercedes for the German military as a radio

communications vehicle.  It has 17" clearance under the differentials and

will ford

3 1/2 feet of water without the snorkel... It has a 6 speed transmission with

2 reverse gears. It is 2 or 4 wheel drive with differential locking.


It was designed to take a 5 person radio team to remote sites to set up

communications outposts.


It was manufactured in Gaggenau Germany and has the same 6 cylinder gasoline

engine that Mercedes put in their 220 sedan.


I use it to trail ride and go off road in the Rockies of Colorado, Wyoming

and occassionally to Moab, Utah.


Jeepers like Steve Head just don't understand...  Moggers eat Jeeps and

Hummers for breakfast.


Duane Russell

Castle Rock,  CO


---------------------------------------------------------------------------------------------------- You will not see this on our Website Conference List:


The Financial Resource Conference

August 28-30, 2001

The Ritz-Carlton, Buckhead

Atlanta, GA




1st Attendee Registration -  $775

Subsequent Attendee Registration(s) Within Same Company -  $675

Attendee Registration is limited and subject to availability.


Last we heard there was a waiting list. Contact

for further information. lists only leasing

association events that are for association members, generally

not fund raisers, but of interest to members and potential members.


The first scheduled conference is:



Association of Equipment Leasing Annual Conference


evening, 9/23 and Monday, all day, 9/24

East Rutherford, New Jersey


Bruce Smith, Diversified Capital Credit

Vice-Chairman, Dennis Horner, The Equipment

Leasing Company

Legal Workshop Chairman, Richard Feldman, Evans Feldman &

Boyer, LLC

Exhibor / Sponsor, Chairman, Paul Meyer, Manifest Funding Services


Chairman, Robert Ingram, Sterling Bank Leasing



Mamaroneck Ave., Ste., 400

Harrison, NY. 10528-1632



the next is:


October 11th, 2001 MAEL 20th Annual Meeting [ MAEL ] Location : Metropolitan Club, Chicago The Annual Meeting is open to membership only and their guests.

You’ll have the opportunity to network with your peers, enjoy an excellent reception, followed by a sumptuous dinner and entertainment. 

Our distinguished speaker will be:

Mr. Jordan Goodman from Financial Communications, Inc. and his topic of discussion will be "How to profit from today's economy".

October 11, 2001

5:00 PM Meeting (*Members Only in the 33rd Floor Conference Room)

5:30 PM Reception (*67th Floor Chicago Room)

7:00 PM Dinner (*67th Floor Oak Room)

8:30 PM Speaker

9:00 PM Adjourn

Reservations will be taken on a first-come, first-served basis.  Kindly respond on or before September 28, 2001

Rooms are available at the Holiday Inn Merchandise Mart by calling 312-836-5000. Don't forget to say you are with the MAEL!



as well as:


October 11th, 2001 MAEL 20th Annual Meeting [ MAEL ] Location : Metropolitan Club, Chicago The Annual Meeting is open to membership only and their guests.

You’ll have the opportunity to network with your peers, enjoy an excellent reception, followed by a sumptuous dinner and entertainment. 

Our distinguished speaker will be:

Mr. Jordan Goodman from Financial Communications, Inc. and his topic of discussion will be "How to profit from today's economy".

October 11, 2001

5:00 PM Meeting (*Members Only in the 33rd Floor Conference Room)

5:30 PM Reception (*67th Floor Chicago Room)

7:00 PM Dinner (*67th Floor Oak Room)

8:30 PM Speaker

9:00 PM Adjourn

Reservations will be taken on a first-come, first-served basis.  Kindly respond on or before September 28, 2001

Rooms are available at the Holiday Inn Merchandise Mart by calling 312-836-5000. Don't forget to say you are with the MAEL!




followed by:


October 25-28th United Association of Equipment Leasing

San Antonio, Texas Conference


This event, held each Fall, focuses on the UAEL Funding Source Forum, which features funders from throughout the country who are available for appointments during the program. In addition to these funding sources, suppliers exhibit their valuable products and services at the Suppliers' Showcase. The educational programs that are offered will keep you on top of the latest industry and operational developments. A full social calendar will again provide a fun backdrop to making valuable relationships.


We are told almost a two-thirds of the rooms held at the Hyatt have

been booked, and attendance is expected to be high this year.


Registered ACE attendees can reserve appointments with ACE exhibitors for Friday or Saturday. They may also make appointments in advance on line


San Antonio Convention and Visitors Bureau

ACE Exhibitor Registration

ACE Sponsorship Opportunities

Hotel:  Hyatt Regency San Antonio

On the Riverwalk at Paseo del Alamo

(210) 222-1234

UAEL Group Rate:  $172 Single/Double Occupancy

The group block is available now.  If people want, they can and should

start making reservations now as it is expected this block of rooms

to be shortly sold out.


For registration and information on any meetings, please contact

melanie at the UAEL office:

(510) 444-9235 x.23


Many of those that are attending the UAEL Conference also are

attending the ELA 40th Annual Conference, as there are almost

side by side:



40th Annual Conference

Equipment Associations of Equipment Leasing

40th Annual Conference

October 28-31



ELA has the most success in attendance of all leasing associations. There is a true cross section of the industry. This Florida Conference promises the most attendees.Some



olf Tournament and welcome reception in the evening sponsored by Tyco/CIT


drian Slywotzky, Merced Management

    "Tough Times

Create the Next Oportunities---

    What do you need?



    Ten Separate breakout Sessions, all on the

theme, when the tough gets going---

    Reiventing Yourself

/ Other Asset-backed products / private label / third party / vendor     programs

/ real time risk management / changing dynamics create new forms of business     relationship,

     and more.

Noon -- John Kasich, Managing Director, Investment banking

Group, Lehman Brothers Exhibits, ten     break-out sessions:

   article 9, fair credit reporting, continued growth, measure risks and     returns, building upon lessons, better-faster-cheaper, informercials, break, and 3:35 to 5:00   pm., ten more breakout sessions. This is just Monday.

Tuesday as Robert Woodward, whom the "New York Times" has called the "most

famous    investigative report in America," as the luncheon




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