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December 2, 2002
Merry
Christmas (23
shopping days remain) Headlines--- Pictures from the Past---2000---Kerhoulas,
Wright, Nicholas UAEL
Raises Dues, Service Members Hit the Hardest FDIC
says bank profits up 34.8 percent in third
quarter; credit problems grow
GE Commercial Fin.
Completes Acquisition ABB's Structured Finance
Business Expense
Management Takes the Spotlight Christmas
Wine---Mike Barrett, Dumac Leasing Montana's
`wine connoisseur' rule shows the oddity
of wine laws
Nantucket still
a welcome port to 'exiled' Kozlowski #####
Denotes Press Release --------------------------------------------------------------------------------------------------- Pictures from the Past---2000---Kerhoulas, Wright,
Nicholas
Pacifica Capital’s finest ( left to right )
Bette Kerhoulas, CLP, Heather Wright, and Amy Nicholas, CLP ------------------------------------------------------------------------------------------ This Week's Economic Events December 2 MONDAY Commerce Department reports on construction
spending for October. Treasury bill auction. December 3 TUESDAY Institute for Supply Management releases its
report on the manufacturing activity in
November. Commerce Department reports on construction
spending for October. Treasury bill auction. December 4 WEDNESDAY Labor Department reports on third quarter productivity
and costs. Commerce Department reports on factory orders
for October. December 5 THURSDAY Labor Department reports on weekly jobless claims. Freddie Mac, the mortgage company, reports on
mortgage rates. Largest U.S. retailers announce their sales
figures for November. December 6 FRIDAY Labor Department reports on employment for November. Federal Reserve reports on consumer credit for
October. --------------------------------------------------------------------------------------- Uh Oh! Spaghetti Oh!!! Is it a surprise that the East Coast Funder
who cut off 117 brokers just a few
months ago has seen their funding volume
drop from $12,000,000+ in September to under $8,000,000 in November? (Name withheld) ------------------------------------------------------------------------------------------------- Do not use my name please. I met with one of Connecticut Bank of Commerce's
SVP in the late 90"s when I was with a bank leasing sub. They asked me to
participate in a lease. When I received the financials the company had an "ongoing
business concern opinion" from a major accounting firm.
When I questioned them about this they said it didn't bother them. When I reviewed
some of their deals for possible participation I noted that several
of there outstanding exceeded 10% of their capital base. I was told that the chairman of the bank felt that leases did not count as loans and were
therefore not subject to the 10% of capital rule. ---------------------------------------------------------------------------------------------- UAEL
Raises Dues, Service Members Hit the Hardest by Kit Menkin LA QUINTA, Cal. –Following the Equipment Leasing
Association (ELA) announcement of increasing
its minimum membership dues from $1200 to
$2200, The United Association of Equipment
Leasing ( UAEL) announced its revised schedule
of membership dues for 2003, including increasing
the minimum broker/lessor from $445 to $595,
next tier $800 to $995, and $1045 to $1295.,
funder from $1725 to $1995, service from
$600 to $795, and larger service providers
from $600 to $1,495. Broker/Lessor
($0-10 million)...............................$ 595 Broker/Lessor
($10-20 million)..............................$ 995 Broker/Lessor
(20+million)................. .................$
1,295
Funder. .................................................................$
1,995 Service
Providers (less than 6 employees)>>>>................$ 795 Service
Providers (6 or more employees)..........................$
1,495 "We have shifted from a 5-tier to a 3-tier
system in order to simplify the structure
and align it more closely with the actual
annual funding volume categories into which
most of our broker/lessor members fall,"
said 2002 President Bob Fisher, CLP, in
the press release.
A former press release noted the organization
to save money moved from Oakland to La Quinta, California, and has two
employees, Joe Woodley, CEO in La Quinta,
and Bill Grohe, membership development in
San Francisco, California. ELA has 27 employees. The 2001 “Dues Comparison”
may be found at: http://leasingnews.org/DuesComparison.htm
along with membership comparison. Newly elected 2003 President Bette Kerhoulas,
CLP, said in the press release: "Involvement in Association activities
adds value to the members' professional
strengths and abilities. Our educational programs and conferences bring
members into contact with the profession's
best practices and with the industry leaders
who are developing those practices and making
them work. Our selective dues increase will enable UAEL
to further enhance the quality of its educational
products and deliver additional long-term
benefits to each member who participates
in our programs." In comparing the two association budgets, the
great majority of gross income does not come from the membership dues, but membership
participation at conferences, seminars and workshops. The gross income from these events is important
to the budgets of both organizations. The last San Diego UAEL conference drew 320,
including exhibitors, where the ELA Conference
in San Francisco drew over 1,200.
There are very few “non-members”
who attend these conferences, except perhaps
as part of a membership campaign as promoted
by UAEL. The UAEL funding retreats have
been poorly attended and regional meetings
are far in-between as compared with previous
years. “UAEL was established in 1974 as an association
bringing together all segments of the leasing
industry, including brokers, independent
lessors, funders, bankers and service providers. All UAEL members have full voting privileges.” The press release from UAEL noted that all its
members “have full voting privileges,” most
likely a reference to the National Association
of Equipment Leasing Brokers, where only
brokers may vote in election of officer,
not “funders.”
The National Association of Equipment Brokers
has been promoting a joint conference in
the coming years, and emphasizes its association
is primarily aimed at serving its broker
membership, not funders, lessors, or service
providers. Broker membership dues are $295
a year. They also have an active “listserve” /billboard
for members to share information with each
other via the internet. They have no paid
employees, utilizing a management service. The UAEL press release notes “For Additional
Information, Contact: (media) Jim McCommon, CLP jim@2lease.com (CEO) Joe Woodley, CLP Executive Director
jwoodley@uael.org Please visit the UAEL website www.uael.org for
updates.
“ Also send Leasing News to a colleague as we
are trying to build our readership. We print the truth. The real
stuff. Mainly from insiders. -------------------------------------------------------------------------------------------- FDIC says bank profits up 34.8 percent in third
quarter; credit problems grow By Associated Press WASHINGTON (AP) Credit card loans written off
by the nation's commercial banks jumped
35.6 percent to $3.9 billion in the three
months ending in September as credit quality
problems continued to grow. The surge in write-offs, compared with the third
quarter of 2001, came as banks earned $23.4
billion, only $11 million short of the record
set in the second quarter of this year,
the Federal Deposit Insurance Corp. reported
Tuesday. The third-quarter profits were up 34.8 percent
from the July-September period last year.
Still, they were held back by sharply lower
income from banks' international operations
and by higher expenses for loan losses,
the FDIC said. ''The ride became a little bumpier particularly
for a few large institutions in the third
quarter, but the industry as a whole enjoyed
near-record earnings,'' said FDIC vice chairman
John Reich. ''It remains well positioned
to continue to be an engine of growth for
the economy.'' Also reflecting consumers' problems paying back
credit card loans, the federal courts reported
Monday that record numbers of individuals
found themselves in heavy debt and filed
for bankruptcy in the 12 months that ended
Sept. 30. Personal bankruptcy filings rose
1.5 percent to a total of 1,508,578. The FDIC said the number of commercial banks
on its ''problem list'' rose to 126 from
115 in the second quarter, with a total
$38 billion in assets. In addition, one commercial bank failed during
the third quarter, the FDIC said. The failure
in September of AmTrade International Bank
of Atlanta brought a $6 million loss to
the federal deposit insurance fund. So far
this year, ten federally insured institutions
nine banks and one savings and loan have
failed. Return on assets, a basic yardstick of bank
profitability, was an average 1.37 percent
in the third quarter, down from the record
1.41 percent in the second quarter. But
a majority of banks, 55.6 percent, saw their
ROAs improve. The Office of Thrift Supervision reported Friday
that earnings increased 14 percent at the
nation's savings and loans in the third
quarter to $2.97 billion. On the Net: Federal Deposit Insurance Corp.: http://www.fdic.gov ### ################################################### GE Commercial Finance Completes Acquisition
of ABB's Structured Finance Business STAMFORD, Conn ---GE Commercial Finance announced
today it has completed its acquisition of
the structured finance business of ABB.
ABB and GE Commercial Finance had entered into
a definitive agreement for GE Commercial
Finance to purchase the Structured Finance
business on September 4, 2002. The ABB structured finance business includes
global infrastructure financing, equipment
leasing and financing businesses. These
operations serve customers principally in
Europe and the United States. ABB's structured finance businesses will become
part of three units of GE Commercial Finance:
GE Structured Finance, GE European Equipment
Finance and GE Vendor Financial Services. |
