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July 24, 2001
Leasing News Policy Statement http://www.leasingnews.org/policy.htm -----Nothing is sent out that is not "fair." Always unbiased reporting. Fairness always. If it is questionable, we will ask the writer's permission to quote them. We will print information without attribution, but feel as long as we do not name the person who sent it, we can use the information. Any information we think is suspicious, we try to have if substantiated first by at least two reliable people. We will not purposely send out "negative" news. We prefer "positive" news. We have no "axe" to grind or are not paid or seek or accept any remuneration for product or promotion. We do not Spam anyone. To be added to the mailing list, you must request it. We do not send anything about our company or personal e-mail or jokes to the leasing news list. We do not share our mailing list with anyone. We try not to send more than one report a day, if at that, unless an "alert." We follow Internet Netiquette at all times. Our sole purpose is to provide communication to improve our profession. We reserve the right to deny sending the newsletter when requested. We reserve the right to edit or delete an opinion that is not in good taste or is outright derogatory. Leasingnews.org --------------------------------------------------------------------------------------------- Headlines--- Fraud Alert Rumor Stage---CIT-Atlanta/ US Banc MicroBilt Expands CreditCommander.com's Capabilities with First American CREDCO's Merged Credit Reports Bay View Capital Announces $94.5 M Loss 2nd Quarter Result Advanta’s Latest Press Release ( but look at the figures ) GATX Reports $21.6 M profit 2nd Results Comdisco, GE Near Agreement on Sale of Lease Business--Or are They?
### denotes press release Please pass on to a colleague. We are trying to build our readership. We do not advertise nor have banners. We are free. The great majority of our information comes from our readers. You get the real scoop, here. ____________________________________________________________ Fraud Alert Telecom Management Washington Communications Good afternoon. We are a lease broker that started in 1994. For the past month or two we have been doing business with two vendors who are working together in a fraud ring. We uncovered this a week or so with the help of one of our funding sources (Manifest Group). We tried to fund a transaction that was funded twice before. You mentioned these two "vendors" back in March in the Leasing News. The "vendors are" Telecom Management" of Orange, California and "Washington Communications" in Baltimore. I wanted to warn the leasing community that these folks are still out there doing their thing. I was unsure the best way to go about this. We are a member of NAELB. I know the detectives in Costa Mesa and Baltimore are working on this but they are not slowing them down in any way. If you have any ideas please let me know. Thank you in advance for your effort and consideration. Name Withheld ( for legal purposes ) Rumor Stage---not confirmed: “Just heard from a reliable source that CIT is calling in all the managers in the Atlanta office in the morning to shut down the operation there. They are relocating the operation to Phoenix. That will put 150 people on the street. There will be some people offered positions in AZ but most will not have that option. This is what I heard just now.” Name Withheld ( very reliable source, well known to us ) ### ################ ################### ############# MicroBilt Expands CreditCommander.com's Capabilities With First American CREDCO's Merged Credit Reports
KENNESAW, Ga..Web-Based Application Helps Businesses Save Time and Money by Consolidating Credit Bureaus' Information MicroBilt Corporation, a nationwide leader in credit report retrieval solutions, and First American CREDCO, the nation's leading provider of specialty credit reporting and information management products and a member of The First American Corporation (NYSE: FAF) Family of Companies, announced jointly today that the companies have partnered to offer First American CREDCO's merged credit reporting services to MicroBilt's wide range of customers in the consumer financial markets. This new credit reporting service will be available through MicroBilt's Web site, www.CreditCommander.com. The addition of First American CREDCO'S three-bureau merged credit report, Instant Merge(R), is in direct response to requests from MicroBilt customers who seek comprehensive and consolidated credit information. The addition expands MicroBilt's product offering and gives First American CREDCO increased market penetration into the consumer finance industry. The service represents a key advantage to businesses that run multiple credit reports. The time and cost associated with running credit reports individually not to mention consolidating and analyzing the information is significant. Using CreditCommander.com's new merged report, businesses will have the ability to customize their report format to fit their needs and run one consolidated report in a matter of seconds. By completing one customized form on-line, businesses are able to retrieve consolidated information from the credit bureaus with just a click of the mouse. "Adding the Instant Merge service, answers our customer requests for merged bureaus, bringing even more value to our broad range of products and services," explained Mike Garretson, Senior Vice President and General Manager of MicroBilt. "Our existing customers will simply be able to pull the merged reports with their existing credit bureau sub-codes and see improved productivity immediately." "This is a perfect match for First American," noted Eric Rumsey, President of First American CREDCO's Consumer Products Division. "As a leading provider of merged credit reporting services, our partnership with MicroBilt extends our opportunity to provide cutting-edge technology to consumer finance companies, giving them the tools they need to make informed credit decisions." About First American Corporation: The First American Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information and related products and services. The corporation's three primary business segments include: title insurance and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides automotive, subprime and direct-to-consumer credit reporting; resident screening; pre-employment screening; property and automotive insurance tracking services; property and casualty insurance; home warranties; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com. About MicroBilt: MicroBilt, a division of Bristol Investments, Ltd., is the North American leader in credit bureau data access and retrieval, providing credit solutions to the Financial, Leasing, Health Care, Insurance, Law Enforcement, Educational and Utilities industries. MicroBilt provides interfaces with the three Consumer bureaus, Equifax (NYSE: EFX), Experian (London Stock Exchange: GUS) and Trans Union and the two commercial bureaus, Dun & Bradstreet and Experian Business. Bureau data is available via dedicated terminals, dial-up software, batch processing, private label call centers, fax back, Internet website access (www.creditcommander.com) or through an integrated custom interface utilizing the Software Developers Kit. Private company information along with knowledge-based analytical tools and information services is available through MicroBilt's newly acquired, Integra Information, Inc., www.integrainfo.com. The company also enables web sites to enhance their content offerings by delivering www.creditcommander.com and www.privateco.com co-branded sites to their established online communities. MicroBilt services over 30,000 customers throughout the United States and Canada. Formerly a First Data Corporation (NYSE: FDC) subsidiary, MicroBilt Corporation (www.MicroBilt.com) maintains offices in Georgia, New Jersey, New York, South Carolina, Arizona, Illinois and California. For more information, contact MicroBilt Corporation, 1640 Airport Road, Suite 115, Kennesaw, GA 30144. Telephone: 1-800-884-4747. Or visit their website at www.microbilt.com. ### ############### ########################### Bay View Capital Corporation Announces Second Quarter Results
SAN MATEO, Calif., / -- Due to specific charges consistent with the previously announced new strategic plan, Bay View Capital Corporation (NYSE: BVC) (the "Company") today reported a second quarter 2001 net loss of $95.4 million, or $2.11 per share, as compared to a net loss of $7.97 million, or $0.24 per share, for the first quarter of 2001 and net income of $0.2 million, or $0.01 per share, for the second quarter of 2000. Second quarter losses were planned for and offset by the Company's successful completion of its $137.5 million rights offering. Adjusting for the non-recurring nature of these specific charges, operating cash results for the second quarter of 2001 were a net loss of $0.5 million, or $0.01 per share. Specific charges recognized during the second quarter included $53.1 million in pre-tax charges associated with the revaluation of franchise-related assets. The revaluation charges consisted primarily of $31.7 million in pre-tax charges related to the anticipated sale of approximately $300 million in loans to Goldman Sachs Mortgage Co., as well as writedowns of other franchise-related assets. The loan loss provision for the quarter totaled $52.4 million reflecting the mark-to-market on loans transferred from held-for-investment to held-for-sale during the quarter as well as additional reserves provided on the remaining franchise loan portfolio. The Company's second quarter results also included $10 million of additional provision for residual losses associated with the auto lease portfolio and $10 million in restructuring charges primarily related to the reduction in Bay View's workforce. As previously announced, the Company recognized a loss of $23 million on the sale by Bay View Bank of the legal entity Bay View Franchise Mortgage Acceptance Company ("BVFMAC") and its related servicing platform and a loss of $11 million on the sale of home equity loans during the quarter. These losses were offset by a gain of $11.9 million on the sale of $282 million of Government National Mortgage Association mortgage-backed securities. "Although we realized significant charges this quarter, they reflect our success in implementing our new strategic plan," said Robert B. Goldstein, president and CEO of Bay View Capital Corporation. "One of the main purposes of the rights offering was to facilitate the divestiture of Bay View's higher-risk assets. The sales of BVFMAC and the high loan-to-value home equity loans were major steps toward accomplishing this and returning the Company to its core banking businesses focused on the San Francisco Bay Area." Matt Carpenter, in his role as chief operating officer at BVCC, was the principal engineer of the Company's recent divestiture programs. Having completed these disposition assignments, Mr. Carpenter has decided to leave the Company effective August 1, 2001. He and his family are moving to Colorado where they have purchased a home. Mr. Goldstein will assume the remaining holding company operating responsibilities. Bay View's deposit franchise continues to be strong. Bay View Bank's transaction accounts, which are lower-cost deposits relative to retail certificates of deposits, grew $122 million, or 7.2%, during the quarter and increased to 53.2% of total retail deposits from 49.1% for the prior quarter. During the quarter, wholesale borrowings were reduced by $518 million and brokered certificates of deposits totaling $139 million matured and were not renewed. "We are very pleased with the continued growth of our transaction accounts," said John W. Rose, Executive Vice President and Chief Financial Officer. "The shift in our deposit mix during the quarter combined with the paydowns in wholesale borrowings and maturities of our brokered certificates of deposits provide us with the lower-cost of funds necessary to execute our plans for the future." Loan originations totaled $224.4 million for the quarter compared to $135.8 million for the prior quarter. The $88.6 million or 65.2% increase in originations reflects Bay View's commitment to its commercial and retail banking businesses. Originations for the quarter included $80.0 million in auto loans, $74.5 million in multi-family mortgage loans, $48.4 million in commercial and business loans and $21.5 million in home equity loans. These originations were offset by the previously announced sale of approximately $143 million in home equity loans and $41 million in franchise loan sales during the quarter. The Company's net interest income and net interest margin for the second quarter of 2001 were $29.7 million and 2.83%, as compared to $32.5 million and 2.93% for the prior quarter. The decrease in net interest income was primarily due to lower average interest-earning asset balances and lower net interest margin. The decrease in average interest-earning assets was primarily due to asset sales during the year. The decrease in net interest margin was primarily due to lower asset yields offset by lower funding costs. The decreases in both asset yields and funding costs were primarily due to the lower interest rate environment. Normalized net interest margin, which the Company defines as net interest margin adjusted to include the net rental income from its auto leasing activities and the expenses related to its Capital Securities, was 3.13% as compared to 3.22% for the previous quarter. Although credit quality continued to be impacted by the performance of franchise loans as various sectors of the franchise market were still affected by market pressures, nonperforming assets improved to $92.0 million at June 30, 2001 as compared to $113.2 million at March 31, 2001. The decrease in total nonperforming assets was primarily due to resolutions of specific franchise problem credits during the quarter. Loans and leases delinquent 60 days or more at June 30, 2001 were $86.1 million as compared to $80.6 million at March 31, 2001. The increase in loans and leases delinquent 60 days or more was primarily due to an increase in franchise loan delinquencies. Nonperforming assets excluding franchise-related assets were $19.6 million at June 30, 2001, as compared to $25.8 million at March 31, 2001, while non-franchise delinquencies remained flat at $26.7 million as compared to $26.4 million at prior quarter end. Excluding net gains or losses on sales of assets, noninterest income was $30.8 million for the second quarter of 2001 compared to $31.5 million for the prior quarter. During the second quarter, increases in loan fees and charges and sales commissions were offset by lower loan servicing income, account fees, and income related to auto leases, which the Company ceased purchasing in June 2000. The Company recorded a tax benefit of $59.5 million for year-to-date losses. The Company expects to be able to fully recover these additional deferred tax assets. Bay View Capital Corporation is a commercial bank holding company headquartered in San Mateo, California. The Company's principal subsidiary is Bay View Bank, a nationally chartered commercial bank which is the largest deposit franchise exclusively serving the San Francisco Bay Area with 57 full-service branches. Bay View offers a full array of retail and commercial banking products and services to its customers. For more information, or to locate the closest branch, call 1-800-BAY VIEW (1-800-229-8439), or visit www.bayviewbank.com. ### #################### ############################ Eastern Association of Equipment Leasing Annual Conference, Sunday evening, 9/23 and Monday, all day, 9/24 East Rutherford, New Jersey Chairman, Bruce Smith, Diversified Capital Credit Vice-Chairman, Dennis Horner, The Equipment Leasing Company Legal Workshop Chairman, Richard Feldman, Evans, Feldman & Boyer, LLC Exhibitor/sponsor, Chairman, Paul Meyer, Manifest Funding Services Workshop Chairman, Robert Ingram, Sterling Bank Leasing EAEL 600 Mamaroneck Avenue, Ste., 440 Harrison, NY 10528-1632 914-381-2001 _______________________________________________________________ Advanta---- In thousands from their Three Month Financial Statement: income (loss) from continuing operations 8,760 (4,029) (7,904) (3,173) Loss, net, on discontinuance of mortgage and leasing businesses, net of tax 0 0 (4,000) (4,000) -------- ------- -------- -------- Net income (loss) $ 8,760 $(4,029) $(11,904) $ (7,173) Here is their press release, the “spin:” Advanta Reports On-Track Business Card Results
SPRING HOUSE, Pa--Advanta Corporation (NASDAQ:ADVNB; ADVNA) today announced second quarter net income for Advanta Business Cards of $8.8 million, representing an after tax return on average managed receivables of 1.9% on an annualized basis. Continuing on track toward its goals for 2001, operating results from continuing business segments were $0.32 per share for Class A and Class B shares combined as compared to $0.29 per share reported last quarter. The Company generated an increase in risk-adjusted margin to 12.7%, as compared to 12.4% for the first quarter 2001. "Our small business credit card customers continue to provide earnings momentum to us," said Chairman and Chief Executive Officer Dennis Alter. "Our goal is to prudently grow our customer base through continuing product differentiation and market segmentation of our prospect base of almost 40 million small businesses," said Alter. Details for the second quarter included managed receivables of $1.9 billion at June 30, as compared to $1.78 billion at March 31, 2001. The improvement in risk-adjusted margin during the quarter reflects increased card usage and a favorable interest rate environment which more than compensated for an anticipated increase in charge-offs. Consistent with the forecasted seasoning of the business card portfolio and the current economic environment, over 30 day delinquencies were 5.8% and charge-offs on an annualized basis were 7.4% at June 30, 2001. Also included in the second quarter results is a $2 million increase in the on-balance sheet loan loss reserve, resulting in a conservative 10.5% reserve to owned receivables at June 30, 2001 as compared to 9.9% at March 31, 2001. Earnings for the quarter, excluding the effects of a previously announced sale of deposit liabilities and discontinued operations, were essentially breakeven. The Company recorded pretax asset valuation charges of $5.6 million on its venture capital portfolio consistent with the current market for early stage venture capital investments. The Company also recorded revisions to its estimates for restructuring expenses and discontinued operations associated with mortgage transaction expenses and the valuation of leasing assets. As a result of these non-operating items and restructuring charges, the Company reported a net loss for the quarter including discontinued operations of $7.2 million, or $0.28 per share on a diluted basis for its Class A and Class B shares combined. During the quarter, Advanta strategically used the over $1 billion proceeds from the sale of its mortgage business in February 2001 to strengthen the Company for the future. Capitalizing on its large cash position, Advanta significantly reduced debt and deposits by $902 million, including substantially all of its outstanding institutional debt and a considerable amount of its retail notes. Through July 23, 2001, the Company repurchased in excess of 100,000 shares of its Class B Common Stock pursuant to its previously announced plan to repurchase up to 1.5 million shares of common stock and/or the equivalent dollar amount of trust preferred securities. Advanta management will hold a conference call with analysts and institutional investors today, July 24, 2001, at 9:00 am Eastern time. The call will be broadcast simultaneously for the public over the Internet through www.advanta.com or www.vcall.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. Replays will be available shortly after the call on the Vcall site. Advanta is a highly focused financial services company which has been providing innovative financial solutions since 1951. Advanta leverages its first-class direct marketing and information based expertise to develop state-of-the-art data warehousing and statistical modeling tools that identify potential customers and new target markets. Over the past five years, it has used these distinctive capabilities to become one of the nation's largest issuers of MasterCard business credit cards to small businesses. Learn more about Advanta at www.advanta.com. This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties are: (1) the Company's managed net interest margin; (2) competitive pressures; (3) factors that affect the level of delinquencies and charge-offs, including a deterioration of general economic conditions; (4) factors affecting fluctuations in the number of accounts or loan balances; (5) interest rate fluctuations; (6) the level of expenses; (7) the timing of the securitizations of the Company's receivables; (8) factors affecting the value of investments held by the Company; (9) the effects of government regulation, including restrictions and limitations imposed by banking laws, regulators, examinations, and the agreements between the Company's bank subsidiaries and their regulators; (10) relationships with significant vendors and business partners; (11) the amount and cost of financing available to the Company; (12) the ratings on the debt of the Company and its subsidiaries; (13) the completion of the post-closing process following the sale of our mortgage business and the ultimate amount of restructuring and other related charges associated with the conclusion of strategic alternatives process for our mortgage and leasing businesses; (14) the impact of litigation; and (15) the ability to attract and retain key personnel. Additional risks that may affect the Company's future performance are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. ### ############## ########################## GATX Corporation Reports Second Quarter Results
CHICAGO / -- GATX Corporation (NYSE: GMT) today announced its 2001 second quarter results. For the quarter, GATX reported consolidated net income of $21.6 million, or $.44 per diluted share compared to $41.5 million, or $.86 per diluted share in the prior year period. The second quarter 2001 results include a $30.6 million pre-tax write-down of telecommunication assets. For the six-month period ending June 30, GATX reported income of $192.3 million, or $3.90 per diluted share. Excluding the gain on the GATX Terminals sale and other non-recurring charges reported in the 2001 first quarter, income for the first six months was $53.2 million, or $1.08 per diluted share compared to income of $82.1 million, or $1.68 per diluted share in the prior year period. All comments from here forward in this press release regarding 2001 year-to-date results and outlook exclude the GATX Terminals-related gain and other non-recurring charges recorded in the 2001 first quarter. Ronald H. Zech, chairman and president of GATX, stated, "For the 2001 second quarter, increased pre-tax spread and remarketing income were more than offset by continued market weakness at GATX Rail and write-downs in GATX Capital's telecommunications portfolio. "At GATX Rail, we have experienced a decline in market conditions over the past 18 months, and this trend continues. The problem of excess railcar inventories has been compounded by a slowing economy. Our customers, especially those in the chemical industry, are experiencing their own difficulties and demand for railcars has declined accordingly. GATX Rail posted second quarter net income of $11.5 million compared to $17.9 million in the prior year period and $12.1 million in the 2001 first quarter. While the level of our concern regarding current conditions in the rail sector remains high, we remain positive about the long-term fundamentals of this business. "Financial Services, comprised primarily of GATX Capital, posted second quarter net income of $14.3 million compared to $21.1 million in the prior year period. Although pre-tax spread increased and remarketing income was particularly strong, further weakness in its telecommunications portfolio caused GATX Capital to write down $30.6 million of telecommunication assets that were deemed impaired. "During the second quarter, GATX's telecommunications exposure was reduced to $125 million, or 2% of total assets. This $50 million reduction from the prior quarter was comprised of the $30.6 million write-down and approximately $20 million of principal repayments and amortization. We will continue to aggressively reduce our remaining telecommunications exposure, a strategy that will suppress near-term earnings as we attempt to bring this issue to a prompt closure, maximize recovery of our investment, and minimize future uncertainty surrounding the ultimate impact of GATX's telecommunications exposure. "Looking at the remainder of 2001, providing an EPS outlook that incorporates telecommunications-related losses is impractical given the uncertainty of potential additional charges in that area. Excluding telecommunications-related losses, we currently expect 2001 income of approximately $2.20 per share on a diluted basis. This 2001 expectation incorporates three key assumptions: by opting to use the GATX Terminals sale proceeds conservatively, we estimate resulting 2001 earnings dilution to be approximately $.25 per share; GATX Rail is expected to post full year income of approximately $40 million; and Financial Services is expected to post income in the range of $65-$70 million, excluding telecommunications-related losses. Mr. Zech added, "The dilutive impact of the Terminals sale warrants further comment. When we initiated the sale process over one year ago, we anticipated taking a more aggressive approach for the use of the sale proceeds, thereby minimizing the dilutive earnings impact of the sale. Over the course of the past year, however, the economic environment has worsened, and we have adjusted our approach toward the use of proceeds accordingly. By using the bulk of the proceeds to substantially enhance our liquidity and improve our capital structure, we have positioned GATX to take full advantage of market opportunities that arise during periods of economic uncertainty. However, this strategy has a meaningful negative impact on 2001 earnings. Ultimately, we are confident that this dilutive trend will reverse as we continue to invest in our core businesses. Mr. Zech concluded, "While 2001 year-to-date has been challenging, I am encouraged by a number of important and positive events that occurred during the first half of this year, including the El Camino acquisition, the Pembroke air joint venture, completion of a new labor agreement at GATX Rail, and a sizeable international railcar acquisition. As we work diligently to improve our near-term performance, these events, coupled with a strong position in our core markets, provide the basis for our long-term optimism." FINANCIAL SERVICES Financial Services, comprised principally of GATX Capital, reported second quarter income of $14.3 million compared to $21.1 million in the prior year period. For the six-month period, Financial Services reported income of $25.8 million compared to $44.0 million in the prior year period. Investment volume totaled $361 million during the second quarter compared to $407 million in the prior year period. For the first half of 2001, investment volume totaled $1.1 billion compared to $732 million in the prior year period. The increased year-to-date volume reflects continued growth in the company's air and technology businesses, including select portfolio acquisitions in these sectors. For the second quarter, pre-tax spread totaled $46.7 million compared to $42.2 million in the prior year period. Annualized pre-tax spread in the second quarter was 4.7% of average net investments compared to 5.4% in the prior year period and 5.0% in the 2001 first quarter. Higher lease and interest income drove the increase in pre-tax spread, more than off-setting a decline in affiliate income which can be attributed to abnormally high affiliate income in the year ago period. Second quarter remarketing income, comprised of both gains on asset sales and residual sharing fees, was $50.3 million compared to $9.3 million in the prior year period. For the six-month period, remarketing gains totaled $64.7 million compared to $18.7 million in the prior year period. The increased remarketing income was driven by strong secondary market activity in air and certain other diversified assets. Warrant income totaled $12.4 million in the second quarter compared to $8.6 million in the prior year period. For the six-month period, warrant income totaled $27.6 million compared to $22.6 million in the prior year period. Reflecting gains realized during the second quarter, the pre-tax unrealized gains decreased to $12.7 million at the end of the second quarter from $23.5 million at the end of the 2001 first quarter. Loss provisions totaled $16.1 million in the quarter compared to $2.0 million in the prior year period. The allowance for loss was 6.2% of reservable assets at the end of the second quarter compared to 5.8% in the prior quarter and 8.2% in the year ago period. In addition to the $30.6 million telecommunications impaired asset write- down, net charge-offs of reservable assets during the second quarter totaled $12.9 million. Total write-downs and net charge-offs in the second quarter were 1.1% of average net investments compared to .17% in the prior year period and .32% in the 2001 first quarter. For the six-month period, write-downs and net charge-offs totaled $55.7 million, or 1.5% of average net investments compared to .36% in the prior year period. GATX RAIL GATX Rail reported income of $11.5 million in the 2001 second quarter compared to $17.9 million in the prior year period, and $12.1 million in the 2001 first quarter. For the six-month period, GATX Rail reported net income of $23.6 million compared to $36.4 million in the prior year period. Utilization and lease rates remain under pressure, as chemical companies have reduced manufacturing capacity in response to economic conditions. Industry-wide chemical railcar loadings declined 6% on a comparable basis through the first half of 2001, and U.S. manufacturing capacity utilization is at a 15-year low. Utilization of GATX Rail's North American full service fleet was 91% at the end of the second quarter, down from 92% in the 2001 first quarter and 93% in the prior year period. GATX Rail continues to take steps to address market weakness. New car order activity has been limited primarily to customer-specific requests, and as a result new car deliveries in the second quarter totaled only 860 cars compared to 1,500 new car deliveries in the prior year period. GATX Rail's full service North American fleet included 91,600 cars at the end of the second quarter, essentially flat with year-end 2000 levels. COMPANY DESCRIPTION GATX Corporation (NYSE: GMT) is a specialized finance and leasing company. It uniquely combines asset knowledge and services, structuring expertise, creative partnering and risk capital to provide business solutions to customers and partners worldwide. GATX specializes in railcar and locomotive leasing, aircraft operating leasing, information technology leasing, venture finance and diversified finance. ################### ###################### #################### ________________________________________________________________ Comdisco, GE Near Agreement on Sale of Lease Business--Or are They? An article by Rob Kaiser Monday's Chicago Tribune reports that Comdisco and GE Capital "are optimistic about completing a deal, according to a source close to the talks." The two companies "have settled in general on a sale price of the leasing assets' book value but are still trying to reach agreements on other matters," according to the article, which quotes an unamed source predicting the deal would be completed next week. Apparently, the negotiations have thus far been for Comdisco's North America and electronics leasing operations (worth between $4.5 and $5.1 billion), although "GE is also evaluating whether it wants to purchase Comdisco's European leasing operations." However, in a Dow Jones Newswire article by Christopher C. Williams, GE declined to comment on the report. Williams quotes GE spokeswoman Louise Binns saying, "We don't comment on speculation or rumors of talks." And Comdisco spokeswoman Mary Moster said "it's premature to comment on the company's efforts to sell its leasing business, since the company announced its intention to sell the unit just Monday." Courtesy ELAonline #### ######################## ################################ GE Capital Commercial Equipment Financing to Acquire SAFECO Credit Company
DANBURY, Conn--GE Capital Commercial Equipment Financing announced today it has agreed to acquire SAFECO Credit Company, Inc. a subsidiary of SAFECO Corporation (NASDAQ: SAFC) based in Redmond, Wash. SAFECO Credit is a middle-market equipment financing and leasing company. The transaction, the terms of which were not disclosed, is pending customary regulatory approvals, and is expected to be completed by the 3rd quarter of this year. "This acquisition provides SAFECO Credit customers with a broader range of financing and leasing options to achieve their goals. Customers will also be pleased that SAFECO Credit's tradition of customer focus will continue with GE Capital," said Paul Bossidy, President and CEO of GE Capital Commercial Equipment Financing. "Additionally, SAFECO Credit complements GE Capital's existing equipment financing businesses by extending our geographic reach into attractive new markets. "SAFECO Credit and GE Capital are a great match," said Rod Pierson, SAFECO chief financial officer. "They're both highly disciplined companies accustomed to high performance and great results over the long term." Pierson said SAFECO would retain the part of SAFECO Credit Company that allows SAFECO to provide equipment financing for its independent insurance agents. About GE Capital: GE Capital Commercial Equipment Financing, a GE Capital company, serves a broad financing market from small businesses to Fortune 100 companies worldwide. Its portfolio includes more than 90 different equipment types, including trucks and trailers, corporate aircraft, manufacturing facilities, construction, medical and office equipment. GE Capital, with assets of more than US$370 billion, is a global, diversified financial services company grouped into six key operating segments comprised of 24 businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, Connecticut, provides a variety of consumer services, such as credit cards and life and auto insurance; mid-market financing; specialized financing; specialty insurance; equipment management, and specialized services, to businesses and individuals in 47 countries around the world. GE is a diversified services, technology and manufacturing company with operations worldwide. About SAFECO: SAFECO, in business since 1923, is a Fortune 500 company based in Seattle that provides insurance and related financial products to individuals and businesses. SAFECO sells its products through more than 17,000 independent agents and financial advisors. Additional information about SAFECO can be found at www.safeco.com CONTACT: GE Capital Marcy Brucellaria, 203/961-2281 cell: 203/984-1912 marcy.brucellaria@gecapital.com or SAFECO Le Roi Brashears, 206/545-3048 lerbra@safeco.com ### ############### ###################### --------------------------------------------------------------------------------------------- Sunday Sermon---Leasing Ethics Series Well, as predicted, a half dozen asked to be removed as they don’t like “sermons.” I did get some encouraging e-mails, and thanked all that sent them. And there were those who were not happy with all the opinions about “ethics,” such as this typical one: “Sorry but please remove me from your daily eMail. I will pick up the info when I hit the website once every couple of days or so. That way I can scan a weeks chatter and read whats is important. Your daily, sometimes several times daily, takes too much of my time. I'm not saying the ethics problems are not important, but I have deadlines and lots to do and need to run 12 and 14 hour days to earn a living at this, ethics or not. It's just to time effective to sit here and read a lot of opinions right now. “'ll keep scanning the website and still keep up to date. “Thanks,” ( I did repeat for two days the opinions on Business Ethics to get everyone involved. You should also know that I did not print all that we received, but just “new ones” or ones that had a different opinion. And one issue was devoted primarily to those who did not want to sign their name, something we don’t like to do, but you should hear what they had to say, whether they signed their name or not. Steve Reid thought they should have signed their name: “I look forward to and enjoy all of your newsletters, and believe they are important to our industry. I do have some "food-for-thought" regarding "name withheld" or "anonymous." We all understand why you withhold individuals' name when they are providing you with inside information or a tip about a company, but the recent discussions about "ethics" is something else. When someone is responding with his or her thoughts, opinions or berating an individual, they should sign their name (or you shouldn't print it). If not, those thoughts or comments lose credibility, and the individual behind them probably has no conviction for what they are saying. It is believed that the editorials should have signatures or not be printed.” Thanks, Steve Reid sr-sbbt@postoffice.pacbell.net Santa Barbara Bank & Trust ( I agree with Steve. I always strongly encourage all to sign e-mail, especially when making accusations. You do not see the many that I reject; many. Sometimes I will send them to the accused and let them know I am not going to use it as it was not signed...but I want them to know what is being said about them. We want to be fair and accurate. Even when they are signed, we have the right not to publish them. There was an exception made for the leasing ethics series just to let readers know what the “anonymous” had to say. The problem is the great majority do not believe we have a problem, or they are too busy, or they just don’t care. editor ) ---------------------------------------------------------------------------------------
"When the Going Gets Tough..." Equipment Leasing Association 40th Annual Conference October 28-31 Boca Raton, Florida ELA is the most successful with attendance of all the leasing associations. There is a true cross section of the industry. A larger turn-out, and a real cross section. This Florida event promises to be the best ever, and that is not hype from ELA---that is this editor's opinion. Why? Here are---- Some Highlights: Sunday: Golf Tournament and welcome reception in the evening sponsored by Tyco/CIT (no, Tiger Woods nor Tiger Welch, but Tiger Burr perhaps. ) Evening Welcome Reception Monday: Adrian Slywotzky, Merced Management "Tough Times Create the Next Opportunities--- ( great speaker, sought after quite a bit- It is said, "With a name like Smuckers, you know it has to be good." Exhibits Open Ten separate breakout Sessions, all on the theme, "When the tough gets going--- "( The Cars sang that song, remember? ) Reinventing 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 ( This is the top guy, in the news all the time.) Exhibits, ten break-out sessions: article 9, fair credit reporting, continued growth, measure risks and returns, building upon lessons, better-faster-cheaper, infomercials, break, and 3:335 to 5:00pm ten more breakout sessions. This is just Monday. Tuesday has Robert Woodward, whom the "New York Times" has called the "most famous investigative report in America, " as the luncheon speaker. To learn more, go to www.elaonline.com/events/2001/Annconv/ ( great page, worth going to see the "knock-out punch." ) September 24 Last day to register and to be included in the pre-registration list. Cutoff date to make accommodation reservations at the Boca Raton Resort & Club. www.leasingnews.org
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