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Kit Menkin's Leasing News www.leasingnews.org Wednesday, July 24,
2002 Accurate, fair and
unbiased news for the equipment Leasing Industry -------------------------------------------------------------------------------------
Headlines---- Finally---A Major
Stock Rally Banks Lead the
Way--NY Times Personal Credit
Information Available to Anyone----Not!!! UAEL Philadelphia
Funding Retreat---Go for It!!! Leasing
News Library Wednesday---Odds
and End New Jersey's
Lakeland Faces Suit Over Surety Bonds" MB
Financial Bank Agrees to Buy LaSalle Systems Leasing" "Large
Chapter 11 Bankruptcies Highlight Use of DIP Loans" U.S. Export-Import
Bank Leasing U.S. Equipment to Russian Farmers Rhode Island
bank embezzler leaves prison after 10 years; says money
is 'all gone' News Briefs---Rumph
signs 5-year contract -49ers' top pick ready to go ### Denotes Press
Release ( sorry late with
news, working on two more breaking stories, thought would
be ready today. editor ) Bank Stocks Ignite Sharp Rally; Nasdaq Up 5%, S.&.P Up
5.7% Dow Closes up almost 490 points!!!! as Wall Street cheered
legal and legislative reassurance about the corporate ethics scandals
that fueled nine weeks of sharp losses. By KENNETH N. GILPIN New
York Times Stock prices shot up in heavy trading today, with the Dow
Jones industrial average soaring more than 6 percent, as the market stemmed
at least temporarily its swoon of the last two weeks. The powerful rally, which lifted all of the leading market
indexes, came after a weak opening and a sharp slide on European exchanges.
Traders and analysts said the slide was curtailed, and then reversed,
when two critical bank stocks, Citigroup and J.P. Morgan Chase, began
to trade higher. ``The whole thing we are looking at is bank stocks,'' said
Rob Harrington, head of equity block trading at UBS Warburg. ``Financials
are about 20 percent of the Standard & Poor's 500 index, and you need
to see some stability in them to get some comfort. Everybody feels we
are oversold.'' According to preliminary figures, the Dow industrials climbed
488.95 points, or 6.4 percent, to 8,191.29. The broader Standard &
Poor's 500-stock index jumped 45.69 points, or 5.7 percent, to 843.39.
And the technology-weighted Nasdaq composite index gained 60.96 points,
or 5 percent, to 1,290.01. Trading volume totaled nearly 2.77 billion shares on the
New York Stock Exchange. Citigroup and J.P. Morgan Chase, in the headlines over their
dealings with Enron, both traded lower at the opening. But buyers emerged
when Citigroup shares hit $24.40 and J.P. Morgan Chase moved down to just
over $18 a share. Citigroup jumped $2.59, to $29.59, while J.P. Morgan Chase
soared $3.22, to $23.30. Executives of the two companies have disputed
allegations, presented at a Senate hearing on Tuesday, that they helped
Enron disguise a portion of the enormous debt that contributed to the
company's collapse. In addition to rise in Citigroup and J.P. Morgan Chase, which
are two of the 30 Dow industrials, traders said the stock market benefited
from the agreement that had been reached by House and Senate negotiators
over corporate-governance legislation. ``To hear that changes are being made is positive,'' said
Nick Angiletta, head of retail trading at Salomon Smith Barney. ``Most people who wanted to be out of this market are out,''
he added. ``The question is when will the capitulators come back.'' Among the stocks leading the Dow higher was Merck, which
rose $3.55, to $42.60. The drug company announced late Tuesday that begin
a new $10 billion stock buyback program. Also, ExxonMobil rose $3.01, to $33.93, after Banc of America
Securities raised its rating on the oil company to a ``strong buy.'' Few traders were willing to call today's improved tone the
start of a longer-term rally, or even a market bottom. But they said that
a different kind of tone began to emerge in trading today. ``There is a different sense of urgency today,'' said Arthur
Hogan, chief market analyst at Jefferies & Company. ``People looked
at what went on in Europe today and said, `This has got to stop.' And
when our market opened down again this morning, it was a slap in the face.''
Leading European stock market averages were down by as much
as 4 percent today before cutting their losses. The one exception was
Germany, where the DAX index rose 3.3 percent. Conditions remained extremely volatile on Wall Street, and
no one was prepared to predict that by the end of the session the stock
market would not stage another sell-off. But the odds seemed to be against
a steep slide. ``We have had four straight days where the market has traded
down 2 percent'' or more, said Dave Memmott, head of block trading at
Morgan Stanley. ``That has happened only twice before, in the 1930's and
the 1970's.'' ---------------------------------------------------------------------------------------- Personal Credit Information Available to Anyone----Not!!! (This is the e-mail hoax making the leasing mail box rounds:
) “Subject: IMPORTANT: Personal Information goes public “Starting July 1st,
2002, the four major credit bureaus in the US (Equifax,etc) will
be allowed to release credit info, mailing addresses, phone numbers, etc., to ANYONE who requests it.
If you do not want to be included in this
release of your personal information, you can call 1-888-567-8688. Once
the message starts you will want option #2 (even though option #1 refers to this email, push #2) and
then option #3. Be sure to listen closely,
the first option is only for a two-year period. Make sure you wait until
they prompt for the third option, which opts you out FOREVER. You
should receive their paperwork in the mail confirming the "opting out"
in less than one week after making the call. “ASS THIS MESSAGE
ON TO ALL IN YOUR ADDRESS BOOK, FRIENDS AND FAMILY.” This e-mail is an Internet hoax. The change in law regards information that credit bureaus
share with other subscribers such as Fair-Isaac, Dun and Bradstreet, or
other credit agencies who send you the pre-approved credit cards. such as Capital One
or Visa or Master Charge. They
have been doing this for years. The new law makes some new definitions,
but you still need signed authorization to run credit on an individual. This is legitimate. Call
the toll free number and protect your personal information. It only
takes a couple of minutes to do. The telephone on #2 says they will take your name off the
ability to share information, or better yet, to contact the individual credit agency, such as Experian. In the past, you could tell your credit grantor not to supply personal information, and
the new law brings further regulations to credit reporting agencies. You cannot obtain credit on an individual by just requesting
it. http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_faqid=626&p_created=1019738481 Kit Menkin ---------------------------------------------------------------------------------------------------- UAEL Philadelphia Funding Retreat---Go for It!!! by Kit Menkin United Association of Equipment Leasing Funding Retreat-July 26th, The City of Brotherly
Love-Cancelled-Lack of Attendance Radisson Warwick Hotel 1701 Locust Street Philadelphia, PA 19103 215-735-6000 United Associations of Equipment Leasing Philadelphia Funding
Retreat is cancelled, according to Jim Buckles from Preferred Broker Solutions;
Membership Director Bill Grohe told him last week his program for the
Funding Conference was cancelled due to lack of people signing up for
his workshop. UAEL CEO Joe Woodley told Leasing News certain aspects of
the conference were cancelled, such as the CLP Foundation section, as
many did not sign up. Buckles
only had two, Time Value had three, and the last program had four, so
they were cancelled, almost one by one.
He said there would be a luncheon with the UAEL board of directors,
and made a blanket invitation for members to attend as his guest; to call
him as he would like them to meet the board and discuss at an open table
issues that concern them. 510-444-9235 All those who have registered, money will be returned.
If it is not, call Mr. Worley direct, as he invites your telephone call. These events have been cancelled 8:00 am-12:00 pm One-On-One
Appointments with Funding Sources and Service Providers 9:00 am-4:00 pm o
CLP Review o Anatomy of a Lease 101 (12:00 pm-1:00 pm Networking
Luncheon –this is open ) 1:00 pm-4:00 pm o
ACC Capital-Technical Leasing For Sales
Success o CapitalStream Advantage Training o TimeValue Software Trainingrectors meeting was scheduled
to occur at the conference. Leasing News received this e-mail. I received a call from Bill Grohe from the UAEL a week or
so ago informing me that the July 26th funding retreat in Philly was canceled
. . . I noticed in your newsletter today that chuck brazier will be attending
this retreat . . . someone's signals are mixed up . . . I was very disappointed
that this was being canceled, I originally signed up for the one scheduled
in march, which was rescheduled to July . . . I am still waiting for my
refund from the UAEL, which bill said he would send me . . . I am strongly
considering withdrawing my membership from the UAEL . . . where is the
value added? tim oconnell (Bill Grohe says he spoke with Mr. O’connell on Monday, July
15,and put in the “slip” for a refund to him for $125. UAEL pays bills every Tuesday. However, when you joined you paid for your membership and
conference with your credit card, so your credit card was issued the
credit. When you get your next statement, if it is not there, he says to give
him or Joe Woodley a telephone call
at: 510-444-9235. . Personally I have known Bill Grohe for thirty years. He is a very honest person. If he said you would be getting your money back, you will.
UAEL is not going out of business. They
have cash and assets. “Perhaps we imposed this event in a new area to us, “ Grohe
says. “ In the past, we let regional areas grow, make requests, and regional events
were supported. The San Diego conference had 110 paid even before the brochure
was sent out. We also have 34 paid exhibitors, and most likely will easily
reach 50.” “Going by to regional activity and support, perhaps that
is what we did in the past, “ he added. “Maybe we should return to it.” The “value added” comes from the membership; from you.
Networking was at one time very important. Ben Millerbus, the president
of Pentech Financial, one of the few companies that does leasing with
venture and new companies, will be attending and was going to be personally there ( he still is, and will also be at the luncheon ). Philadelphia is a new territory for UAEL. Also other associations have cancelled events recently, such as the Equipment Leasing Association in San Francisco. Except for the National Association of Equipment Leasing
Brokers, all the rest have lost members. Association
for Government Leasing and Finance has lost almost a third of their membership. Certainly some by attrition, no longer in business, some
who can’t afford it, and others who question why they joined in the first
place. Each association seems to have a certain niche.
And serve specific purposes. To
learn more, please go to: http://www.leasingnews.org/associations.htm -------------------------------------------------------------------------------------------------------- Leasing News Library If you would like to donate your paste leasing magazines
or newsletters, we would be glad to pay for the UPS or US postage. We are trying to build a “morgue,” for biographies, background,
and research purposes. This is
a list of what we have now: http://www.leasingnews.org/docs/Newsletters_list_Chronological.htm Not included are Equipment Leasing Association magazines,
as Kit Menkin has only been a member since the first of the year. He has most of them at home, and needs to bring them in, so we can catalogue
what we have. ------------------------------------------------------------------------------------------------------- Wednesday---Odds and End I enjoyed the recount of the US Leasing story by Stan Evans.
I also agree with you that our industry needs to focus more on the
agenda of the customer. I am forwarding you a recent report that analyzed
the "promise" of technology and the failed attempts
to move the small ticket segment of the industry to a universe of "exchanges".
The report points out that success has been achieved where a properly deployed
technology initiative has served to "enhance" customer service
by allowing human interaction to occur more efficiently. Technology initiatives that have been deployed to "replace" human interaction have
been miserable failures. In my opinion this situation will exist for some time to
come. For the next 7-10 years we will be leveraging technology to enhance
the customer experience while Internet based initiatives become firmly
imbedded into our way of doing business. During this transitory period
new initiatives will also be required to integrate innovation with legacy
systems. This has proven to be a far more formidable task than everyone
first imagined. In the
meantime, those that intend to be long term players should be learning all they can about new technologies and
how it can be applied to enhancing customer experience. It is much less
expensive to "learn as you go" than try to acquire and implement
all at once. It will be time and money well spent. Bob Rodi President LeaseNOW, Inc. drlease@leasenow.com www.leasenow.com 1-800-321-LEAS (5327)x 101 ----- Thanks for the coverage ...We have signed up several new
banks F&M Bank and Volunteer Bank in Tennessee and Citizens Bank in Alabama
...a Georgia Georgia is Breaking
Records..($4,000,000.00 in equipment leases and earned over $50,000.00 in fee income the first 90 day on the BankPartners program)... Local Bank doing
local market business..I attribute it to good bank relationships with their customers and hard productive
leasing officers working hard in a tough market...We are close to signing
one of the largest community Banks in Georgia...As the saying goes...The market
is tough and the tough get marketing...(or something like that..).. Call or e-mail with any questions...Warren Warren Hawkins whawkins@bancpartners.com ----------- I am looking for
Rich Eudicone from the old NECC--does anyone know how to contact him? If so email me with numb we have info Len Sperl Here it is: Sincerely, Deborah J. Monosson President BOSTON FINANCIAL & EQUITY CORPORATION 20 Overland Street Boston MA 02215 617-267-2900 Tel 617-437-7601 --- 1885-the first state banking association was the Texas Bankers'
Association, which was organized at Lampasas, TX, with an initial membership
of 31. The first president was
James Francis Miller. -- --- Over 110 have signed up this far in advance for the United
Association of Equipment Leasing Conference in October, San Diego, California. www.uael.org -------- The National Association of Equipment Leasing Brokers is
scheduling a Fall Conference in November, Marina Del Rey. Details are being worked out at their board meeting this weekend in Chicago, IL. New Jersey’s Lakeland Faces Suit Over Surety Bonds" American Banker (07/17/02) P. 6; Reosti, John Faced with the prospect of losing millions of dollars in
equipment leasing revenue, Lakeland Bancorp must prove its
case against an insurance company. The case stems from the sale of surety bonds RLI Insurance Co. of Peoria, Ill., sold to Escondido, Calif.-based equipment leasing brokerage Commercial
Money Center. In
the event the lessees stopped paying, the bonds guaranteed the buyer an income of $106,235 per month for
five years starting July 20, 2001. Lakeland stopped receiving payments six months later, and subsequently filed claims
with each of the three insurers that sold the bonds, one of them
being RLI. In its suit
filed in the U.S. District Court for the Southern District of California, Lakeland claims that all
of the insurers except RLI have made full or partial payments.
But RLI argues that it should be released from its monetary obligations
on the grounds that Lakeland exaggerated the amount of revenues
the leases could generate. http://www.americanbanker.com ( courtesy of ELA News---sent to members ) ----------------------------------------------------------------------------------- "MB Financial Bank Agrees to Buy LaSalle Systems Leasing" Dow Jones Newswire (07/22/02) MB Financial Bank N.A. has committed to the $39.7 million
purchase of LaSalle Systems Leasing, $5 million of which
it will cover with stock and $4 million of which will apply to a
deferred payment linked to results of the leasing firm. LaSalle Systems Leasing--which focuses on LAN/WAN networks-, telecommunications
equipment-, and computer enterprise server-lease financing,
had 2001 equipment leases of $37 million. The acquisition, according to MB Financial Inc., should be complete in the third quarter
and produce goodwill of $3 million. MB Financial Bank's parent company posted second-quarter earnings that had increased
52.4 percent to 64 cents per share from 2001. http://www.djnewswires.com ( courtesy of ELA newsline ) ----------------------------------------------------------------------------------- "Large Chapter 11 Bankruptcies Highlight Use of DIP
Loans" Dow Jones Newswire (07/18/02); Hopkins, Marc Big name companies struggling with Chapter 11 bankruptcies,
such as Kmart and Adelphia Communications, are turning to debtor-in-possession (DIP) loan agreements to stay afloat.
With $2 billion and $1.5 billion in DIP financing, respectively,
Kmart and Adelphia are able to maintain day-to-day control of their
businesses, keeping their doors open, paying employees, and
making purchases from vendors. DIP loans, which require companies to obtain permission from the bankruptcy court
to pursue large expenditures or change the structure of the
loan, are becoming more well known today because the companies
that have turned to DIP financing are household names. Often, lenders that already have a relationship with a company provide it
with a DIP loan, which tends to have higher interest rates and fees
to start, maintain, and close out the financing. In dealing with Winstar Communications, lenders such as Citicorp USA, Credit
Suisse First Boston, Bank of New York, Chase Manhattan Bank,
and CIBC learned that DIP lending could be a bad business deal.
When Winstar ended up in Chapter 7 liquidation, the lenders were
forced to sell the company's assets but were disappointed
with the returns. "Maybe
when they paid more for it the market was roaring, but today is a different world and there is a glut
of equipment and gear on the landscape from failed companies,"
says Jeff Kagan, an independent telecom analyst. ( Courtesy of ELA
Newsline ) ------------------------------------------------------------------------------------ "U.S. Export-Import Bank to Support Leasing of U.S.
Equipment to Russian Farmers" Associated Press The U.S Export-Import Bank pledged Tuesday to support the
leasing of U.S. agricultural equipment to Russian farmers whose aging
Soviet-era tractors and combines are falling apart. Export-Import Bank Vice Chairman Eduardo Aguirre and Alexander
Tkachev, the governor of the Krasnodar region of southern
Russia, signed a memorandum of understanding on setting a new leasing
company in Krasnodar. The
agreement will "enable U.S. companies to develop and sustain long-term relationships with Russian
customers," Aguirre says. Krasnodar is still negotiating with potential investors, but hopes to have a leasing company
fully financed by the end of the year. http://www.ap.org "Top-Tier Auto, Card and HEL Spreads All Pushing Tighter" Asset Securitization Report (07/22/02); Donovan, Kevin The U.S. asset-backed securities (ABS) primary market saw
American Honda Finance and MBNA Bank America price transactions
last week, and the two prompted the market to move tighter
in the highly bid credit card and auto loan sectors. Honda brought its third ABS transaction of the year with a $1 billion fixed-rate
offering, while MBNA sold two triple-A rated credit card-backed
offerings. Caterpillar
Financial Services got very strong demand for its equipment loan/lease deal via Banc One and Merrill
Lynch. It offered spreads seven to 13 basis points outside the Honda
trade, and oversubscription rates were more than 400 percent. http://www.absnet.net Rhode Island bank embezzler leaves prison after 10 years;
says money is 'all gone' By Associated Press, CRANSTON, R.I. (AP) A former bank president who is widely
blamed for sparking the state's 1990 banking crisis was released from
prison Wednesday after serving 10 years for embezzlement. ''I have a lot to make up for to a lot of people,'' Joseph
Mollicone Jr. said after he emerged before dawn from a medium-security
wing of the state prison in Cranston. ''I'm really grateful. A lot of people showed caring and
compassion,'' he said. In 1990, Mollicone was the president of Heritage Loan and
Investment Co. and the vice president of the Rhode Island Share and Deposit
Idemnity Corp., which insured 45 of the state's credit unions. He embezzled $12 million from the bank and its members. As
authorities were closing in on him, Mollicone fled to Salt Lake City and
assumed a new identity. The ensuing crisis brought down Heritage and drained the
reserves of its private deposit insurer, forcing the closure of the state's
44 other insured financial institutions. About 300,000 Rhode Islanders
were unable to access their money for up to 18 months, until the state
borrowed more than $300 million to reimburse them. Two years after his escape, Mollicone turned himself in.
He was convicted in 1993 and was sentenced to serve 30 years in prison
and pay $12 million in restitution and a $420,000 fine. It was the stiffest
sentence ever given to a white-collar criminal in Rhode Island. The state Parole Board voted in June to release Mollicone
from prison, but rejected his proposal to sell furniture at minimum wage.
His new release plan calls for him to do ''office work and sales,'' The
Providence Journal reported, but does not specify where. Mollicone said he's looking forward to spending time with
his family. He was driven to his mother's home in Cranston, where he plans
to live temporarily. As he got into a car that whisked him away, Mollicone was
asked what happened to the money. ''It's all gone,'' he said. ------------------------------------------------------------------------------------------- MicroFinancial Incorporated Announces Second Quarter 2002
Results; Meets High End of Revised Second Quarter Expectations WALTHAM, Mass.--MicroFinancial Incorporated (NYSE:MFI), a
leader in Microticket leasing and finance, announced today its financial
results for the second quarter and year to date on June 30, 2002. Second quarter revenue for the period ended June 30, 2002
decreased 15%, or $5.6 million to $33.0 million compared to $38.6 million
last year. Net income for the second quarter decreased 62% to $2.0 million,
or $0.15 per diluted share as compared with $5.2 million or $0.40 per
diluted share, in the prior year's second quarter. The decline in earnings
for the quarter is primarily the result of a 24% reduction in lease and
loan revenues to $4.3 million and a 21% decline in service fee and other
revenues to $1.6 million as compared with the second quarter ended June
30, 2001. Additionally, gross lease investment was down 4.5% or $19.8
million from the same period last year, caused in part by lower than anticipated
lease origination volumes. Total operating expenses for the quarter remained relatively
flat at $30 million compared to the same period in 2001. Interest expense
declined 25% to $2.6 million as a result of lower debt balances of approximately
$9 million and lower interest costs of approximately 143 basis points.
SG&A expenses increased $0.8 to $11.4 million for the second quarter
ended June 30, 2002 versus $10.7 million for the same period last year.
The majority of the increases are attributable to additional legal fees,
professional fees, and dealer service fees. The provision for credit losses
decreased to $10.8 million for the quarter ended June 30, 2002 from $11.8
million for the same period last year, while net charge offs increased
64% to $14.7 million. Past due balances greater than 31 days delinquent
at June 30, 2002 declined to 17% from 17.4% last quarter. Richard Latour, President and Chief Operating Officer stated,
"We are clearly disappointed in our earnings, which were impacted
by a challenging economy and Management's conscious effort to improve
MicroFinancial's credit quality, while exiting specific market segments.
This resulted in a decrease of originations, revenue, and increased SG&A
as percent of revenue. Asset quality and liquidity continue to be the
primary challenges currently facing finance companies." Mr. Latour continued, "We are pleased with the continued
progress of our new business initiatives including professional equipment
and security, which we expect to contribute to the long-term growth of
the business." Revenues for the six months ended June 30, 2002 decreased
12.4% to $68.2 million compared to $77.9 million during the same period
in fiscal 2001. Net income for the first six months of the period ending
June 30, 2002 was $5.2 million vs. $10.6 million for the same period last
year. Fully diluted earnings per share are $0.40 vs. $0.82 for the same
period in 2001. "We believe that the steps we have taken by tightening
our credit standards will strengthen our balance sheet and should improve
our profitability in the long-term. Creating a stronger credit risk profile
and improving the Company's financial flexibility gives us the financial
base to accomplish a transformation of our current business mix, into
a stronger and more diverse business," noted CFO James Jackson. Mr. Latour concluded, "We firmly believe we are taking
the appropriate steps to adapt our business to the ever-changing, highly
competitive landscape. We expect our diversification efforts and strategic
positioning will result in long-term growth and increased shareholder
value." ONTACT: MicroFinancial Inc. Richard F. Latour, 781-890-0177 ##################### ############################# Capital Crossing Bank Announces Second Quarter Earnings BOSTON----Capital Crossing Bank (NASDAQ:CAPX) (the "Bank")
announced consolidated net income for the quarter ended June 30, 2002
of $3,087,000, or $0.71 per diluted share, a 27% increase on an earnings
per share basis from $2,618,000, or $0.56 per diluted share, for the same
quarter in 2001. On a year-to-date basis, the Bank's consolidated net
income was $6,967,000, or $1.60 per diluted share, a 60% increase on an
earnings per share basis from $4,674,000, or $1.00 per diluted share for
the same period in 2001. During the second quarter of 2002, the Bank purchased loans
with outstanding principal balances of $25.8 million at a purchase price
of $25.4 million. In the first six months of 2002, the Bank purchased
loans with outstanding principal balances of $82.0 million at a purchase
price of $70.2 million. During the first six months of 2002, the Bank
experienced a higher rate of loan payoffs than in prior periods, primarily
as a result of the lower interest rate environment resulting in a higher
level of refinances. A significant portion of the Bank's earnings continues to
arise from the recognition of "transactional" income. For the
quarter ended June 30, 2002, the Bank recognized approximately $5.7 million
in transactional income as a result of accelerated interest income associated
with loan payoffs. For the six months ended June 30, 2002, the Bank recognized
$12.6 million in "transactional" income, including $12.1 million
of accelerated interest income associated with loan payoffs and $517,000
in gains on sales of loans. For the three and six month periods ended
June 30, 2001, the Bank recognized "transactional" income of
$4.2 million and $6.8 million, respectively. "We continue to benefit from the strength of our core
business of acquiring and managing loans," noted Nicholas W. Lazares,
the Bank's Chairman and Co-Chief Executive Officer. "We have proven
our ability to capitalize on opportunities that arise in the marketplace
as evidenced by the high level of transactional income resulting from
loan payoffs while maintaining strong reserve coverage. Since the nature
of the loan acquisition business causes the volume of loan acquisitions
to be unpredictable and the level of loan payoffs is to a certain extent
beyond our control, the Bank's earnings may fluctuate significantly in
the future." Richard Wayne, the Bank's President and Co-Chief Executive
Officer, commented, "During the first six months of 2002, we continued
to improve book value per share and return on stockholders' equity through
strong earnings. Since December 31, 2001, book value per share has increased
10% from $18.19 to $20.06 at June 30, 2002." Continuing, Mr. Wayne
commented, "We are pleased that we have been able to reduce the Bank's
cost of funds to 4.40% for the six months ended June 30, 2002 from 5.97%
for the 2001 period, while maintaining relatively high asset yields. The
result of all of our efforts can be seen in the increase in the return
on stockholders' equity to 18.96% for the six months ended June 30, 2002
from 13.70% for the 2001 period." CONTACT: Capital Crossing Bank Nicholas W. Lazares, 617/880-1000 or Richard Wayne, 617/880-1000 ############# ############################################# --------------------------------------------------------------------------------------- News Briefs----- London stocks hit near six year low LONDON (AP) Shares fell Wednesday on the London Stock Exchange
to their lowest level in nearly six years. --- Anheuser-Busch sees double-digit earnings rise for 15th straight
quarter ST. LOUIS (AP) Anheuser-Busch Cos. Inc. earnings rose 11.9
percent in the second quarter, the company said Wednesday. It was the
15th straight quarter of double-digit growth for the world's largest brewer.
( perhaps beer was a better investment than other stocks, as the internet
joke goes. ) --- Founder and former head of Adelphia arrested NEW YORK (AP) Warning that corporate crimes will result in
``handcuffs and a jail cell,'' federal authorities arrested the founder
of Adelphia Communications and two sons Wednesday on charges they looted
the now-bankrupt cable company and used it as their ``personal piggy bank.'' --- Longshoremen rally as union delegates reject shipping lines
contract offer SAN FRANCISCO (AP) An assembly of rank-and-file longshoremen
unanimously rejected a contract proposal Wednesday from the shipping lines
that employ them at West Coast ports. -- Martha Stewart Living says insider trading probe is hurting
profits NEW YORK (AP) Martha Stewart Living Omnimedia Inc. officials
said Wednesday that third-quarter and full-year earnings estimates will
be below Wall Street expectations because of the cloud surrounding the
insider trading probe of the company's founder. Shares sank on the news. --- Deal reached on compromise legislation to fight corporate
fraud, Republican official says. WASHINGTON (AP) Negotiators for the House and Senate have
reached agreement on legislation to crack down on corporate fraud, a Republican
official said Wednesday. --- HCA profits up 25 percent, beating Wall Street expectations NASHVILLE, Tenn. (AP) HCA Inc., the nation's largest for-profit
hospital chain, on Wednesday reported a 25 percent increase in second-quarter
profits, beating Wall Street expectations. --- Rumph signs 5-year contract -49ers' top pick ready to go Kevin Lynch, San Francisco Chronicle Staff Writer -------------------------------------------------------------------------------- Stockton -- Rookie cornerback Mike Rumph's obsession to sign
with the 49ers grew so intense, it began to slip into his dreams. Monday
night, the evening before Rumph ended his two-day holdout, he dreamed
he was talking with Bill Walsh. On Tuesday morning, Rumph was in Stockton, signing a five-year,
$6.4 million deal and practicing by afternoon. The first-round pick became
so stir crazy sitting out of camp he called his agent and told him to
get the deal done. "I told him, 'I'm going to (Stockton),' " Rumph
said. "I told him I didn't want to miss any more days." The deal was almost completed by then; agent Ken Harris and
the 49ers finished up the incentive package, and Rumph was merrily on
his way. The contract pays him a $2.35 million signing bonus, a $200,000
reporting bonus, and a $650,000 bonus in March. Rumph is guaranteed $3.2
million in the first two years and has escalators that could add $2.5
million in the fifth year of the deal if hard-to-earn incentives are reached.
Rumph is pleased with the contract and said he plans to set
aside most of the cash for his 17-month-old son, Jalen. Rumph missed only
three practices and two nights of meetings. Unfortunately, the defense was centering on its nickel and
dime packages, which pertain to Rumph, who's projected as the team's nickel
back. Rumph felt so bad about the missed meetings, he called rookie
safety Kevin Curtis at night and peppered him with questions about the
meetings. 49ers coach Steve Mariucci said most of the material already
was covered in minicamps, so Rumph shouldn't be too far behind. With Rumph signed, the team has its full complement of rookies
in the fold except for defensive tackle Josh Shaw, who won't be ready
until midseason because of a knee injury. Now that he's in camp, Rumph has another quest, and that's
to make people forget all about his July 6 arrest for driving under the
influence in Florida. "In the back of my mind, I want to show the fans what
kind of person I am," Rumph said. He barely failed the Breathalyzer
test after getting stopped at a sobriety checkpoint -- the legality of
which might be challenged. Rumph was stopped a block away from trendy
Washington Ave. Crestfallen about the arrest, Rumph called the team and wanted
to talk to Mariucci, who was vacationing with his family at Lake Tahoe.
After getting Mari- ucci's cell-phone number, Rumph stared at his phone
for 15 minutes mustering up the courage to call his coach. |