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March 20, 2001
Headlines: Feds Cut Prime by 1/2 Percent ( as expected ) Official Statement on Listserve "list" AmSouth Introduces Free Internet Banking and Bill Payment for Life Plastic Card Leasing MicroFinancial Inc. Announces Quarterly Dividend Ampent(tm) Names Raymond L. Smith as New Chief Executive ( formerly AccessLease.com ) Leasing News List to be up-dated Tomorrow--- --------------------------------------------------------------------------------------- United Association of Equipment Leasing Funding Retreat Friday, March 23 March 23, 2001 Hilton Kansas City Airport 8801 NW. 112th Street Kansas City, MO 64153 Phone: 816-891-8900 Funders Amembal Capital Corporation Bancorp Financial Services, Inc. CapitalStream Commercial Money Center, Inc. (CMC) Creative Capital Leasing Group, LLC Equipment Lessors Protection Association Financial Pacific Leasing, LLC Leverage Leasing Company The Manifest Group Make appointments with dozens of funding sources and suppliers who will meet your needs for 2001. For registration and information on any meetings, please contact Melanie at the UAEL office: (510) 444-9235 x23 -------------------------------------------------------------------------------------------
Federal Reserve Cuts Interest Rates by 1/2 Point in Bid to Lift Economy Tuesday, March 20, 2001 WASHINGTON -- The Federal Reserve cut short-term interest rates by half a percentage point Tuesday, in an attempt to kick-start the sputtering economy. The central bank's move was widely expected, and some observers had hoped for a three-quarter point reduction. The central bank vowed to 'monitor developments closely,' leaving the door open to another rate cut before the panel's members next meet on May 15. 'Persistent pressures on profit margins are restraining investment spending and, through declines in equity wealth, consumption,' the panel said in a statement. 'The associated backup in inventories has induced a rapid response in manufacturing output and, with spending having firmed a bit since last year, inventory adjustment appears to be well underway.' Economic growth has slowed to a creep in recent months, but there are few signs yet of a full-fledged recession. Nevertheless,
layoffs have been mounting and
consumer confidence is at a
five-year low, to its most sluggish pace in more than five years, rising at a 1.1% annual rate. Inflation, meanwhile, though starting to show signs of picking up, remains relatively low. That left little risk to the central bank from lowering rates. 'Although current developments do not appear to have materially diminished the prospects for long-term growth in productivity, excess productive capacity has emerged recently,' the panel said. 'In these circumstances, when the economic situation could be evolving rapidly, the Federal Reserve will need to monitor developments closely.' Tuesday's decision lowered the Fed's target for the federal-funds rate -- which banks charge each other for overnight loans -- to 5%, after two half-point cuts in January. The central bank also lowered the discount rate, which the Fed charges for loans to banks, by a half of a point to 4.50%. 'The Committee continues to believe that against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future,' the FOMC statement said. Trading in fed-funds futures contracts before Tuesday's announcement suggested that investors were anticipating a three-quarter point cut in the face of a bearish stock market and rampant profit warnings. Central-bank observers had said that anything lower would have been inconsistent with Fed Chairman Alan Greenspan's recent statements about the role of the central bank in controlling the economy. 'The Federal Reserve has seen the need to respond more aggressively than had been our wont in earlier decades,' Mr. Greenspan told Congress in February. 'Economic policy making could not, and should not, remain unaltered in the face of major changes in the speed of economic processes.' The Fed's latest regional economic survey, the so-called beige book, found that seven of the central bank's 12 regions reported 'sluggish to moderate economic growth' in February, while four reported mixed activity. Only the St. Louis region reported noticeably slower growth. Still, some sectors have shown signs of life lately. A closely watched survey of purchasing managers rose in February for the first time in a year. The National Association of Purchasing Management said its manufacturing index rose to 41.9 in February from 41.2 in January. Though the figure remained below the 50 mark that would indicate expansion, the rise was seen as a hopeful sign in a sector that has been hard-hit during the economic slowdown. And consumer confidence, which Mr. Greenspan has cited repeatedly as key to supporting the economy, has showed renewed vigor. The University of Michigan's mid month consumer-sentiment index climbed to 91.8 in March from 90.6 at the end of February The resilient housing sector also has continued to show stamina. Housing starts were roughly unchanged in February, maintaining a very high sales pace of 1.65 million units. ------------------------------------------------------------------------------------------------ Union Bank---Accepting Broker Business Contrary
to rumor published on this page.
Union Bank of California's Equipment
leasing division Kindest regards, Bill Schneiderwind william.schneiderwind@uboc.com Vice President Union Bank of California Equipment Leasing Division ( Leasing News List will be up-dated on line, and sent to all readers tomorrow, too. editor ) ---------------------------------------------------------------------------------------- National Association of Equipment Leasing Listserve "list" I spent a good portion of yesterday on the telephone, trying to explain that the e-mail with the subject name: "list> was not Leasing News list. Nor was it the NAELB "list." I understand two are brokers on the list, not even funders, plus a lessor, and one person who told me one of the people that responded, he was the one "everyone knows not to do business with...how ironic he would protest." I have copies of the original senders of the e-mail "list" and it was between several, who added people that basically they wanted to warn their colleagues about. It was their opinion. The fuss appears to be that they called it a "list." It is their opinion. They should have listed the city and state next to the name of the company, and perhaps a reason why they wanted them on their list, but it was an e-mail posted between several senders. I believe it is legal. Their intention was to warn other brokers about companies they have had problems with. Everyone has been asking for others about opinions, and they gave their opinion. It was not NAELB's opinion. It was not "Leasing News" opinion. It was their opinion as anyone can give in a chat room. All NAELB members should be on listserve to respond if their name is mentioned in the "chat room." The Leasing News list is verified, screened, and no one is put on our customer complaint list without a thorough investigation by us and contacting all parties. Perhaps the original senders of the listserve list should have been following more netiquette. If you would like to learn more about netiquette, here is a good site: http://www.iwillfollow.com/email.htm Kit Menkin, editor + + + In reading over the latest reviews on "listserve," I have to agree with Troy Lovick (don't know him, never met him). His response reads both professionally and, since he doesn't claim injury, objectively. In reading over the rest of the letters, it seems that there is still no uniform standard of ethics for doing business in the leasing industry and whatever codes of ethics there are, are fractured and without teeth. Hence, the complaints to "listserve." It seems to me its name should be changed from "list" to "pissed." Hal Horowitz <hal.horowitz@searchwest.com> + + + I really have no problem with postings like this one. Yes, it could conceivably cause NAELB headaches, but that's what we're in business for. The funder can always respond to this and explain. Thanks for stepping up to the plate! Barry S. Marks, Esq. Bsmblik@aol.com + + + Official Statement from the National Association of Equipment Lease Brokers: To All NAELB Members and All ListServe Users: There has been a lot going around the ListServe over the past week. Apparently, some people have the thought that the ListServe is a forum to hang out other people's dirty laundry. In my position as NAELB Legal Counsel, I have seen and heard many, many, accusations of funders and brokers being unethical to each other. But what people do not realize is that in those situations, I can count on one hand the cases that were not resolved. Only in the extreme case has there been no resolution and the NAELB has had to step in and take action. More often than not, disputes that have come across my desk have been resolved in a civilized manner. Not every broker and funder are going to get along, but just because one dispute exists between one broker and funder does not mean that the broker cannot move onto the next funder and the funder cannot move onto the next broker. Moreover, just because a proposed lease falls apart does not in every case mean that unethical behavior or practices have been engaged in. There is always going to be a risk of doing business, those risks which are normal in any form of business. The NAELB has a code of ethics that applies to our members. The NAELB has an ethics procedure to resolve those disputes. The keyword is "resolve". If there is a dispute between members, there is a well defined procedure for filing a complaint, trying to resolve the matter and if a resolution cannot be reached, then and only then for the NAELB to take action. In my opinion, it is the best code of ethics and ethics procedure in the industry. In addition, the NAELB has another unique and valuable member benefit, the ListServe. This has been called many things such as "forum", "chat room" and even "bulletin board." I've seen requests for advice on there ranging from looking for a funding source, where to file UCCs to the "Black List" that was published the other day. There is a danger in a "Black List", that very danger being the reason why the NAELB has also established the ethics program and procedure referred to above. If someone believes that they have been treated unfairly, there is a complaint and an opportunity to respond built into the NAELB ethics procedure. This is a fundamental component of any civilized system. To go on and state in a judgmental and conclusory manner that someone is a bad apple is not what the NAELB ever intended to accomplish by the ListServe. Please, give the NAELB credit for having more discretion and brains than that. The people that posted the list took advantage of this forum, in an inappropriate manner from the perspective of not allowing an accused party to be able to respond. If a broker has had a bad experience with a member outside of the NAELB, then NAELB is not prepared to be all things to all people. We cannot police nonmembers and we encourage everyone to proceed with caution when doing business with nonmembers. At the same time, we recognize that there are many ethical industry players that are not members of the NAELB and we do not intend to label any nonmembers as unethical, rather, we have a the best dispute resolution mechanism in place for disputes between members in the industry. At no time did the NAELB preview or have the opportunity to preview the lists and amendments that were published. At no time did the NAELB endorse the lists. Rather, the NAELB is taking the approach that it is wrong to judge without having gone through the process, the ethics procedure. This position will not please everyone, I know you cannot please everyone all the time. But learn the lesson that this tool is to be a productive tool for productive business and when it reaches the point of unsubstantiated judgmental statements, then the productivity is lost. The National Association of Equipment Leasing Brokers does not endorse or sanction the lists of "bad" funders recently placed on our listserve. The purpose of the listserve is not to facilitate the venting of personal grudges and we request that this practice CEASE immediately. We are aware that members discuss frankly and factually their experiences with others in the industry, but a wholesale listing of companies with whom a listserve user had a bad experience unfairly lumps unethical companies together with honest professionals who simply prevailed over the disgruntled complainant within the rules our industry. The Association has created an ethics program and has advised its members to use that program and do business with fellow members. This is the ONLY sanctioned means of screening out unethical funders. We apologize to those who, because of a similarity of name or the poor judgment of the posting, were unfairly placed on these lists. We advise all listserve participants to DISREGARD the lists that have been circulated. " Folks, now is the time if there ever was one, for our members to attend, participate, voice their opinions and concerns. The ideal place for this is around the corner, at our next annual conference in New Orleans, May 17-19. Information on the conference can be obtained at our website, www.naelb.org. Hoping and looking forward to seeing the best turnout ever at our annual conference in New Orleans. Joe Bonanno, NAELB Legal Counsel attyjgb@aol.com (781) 391-7800 www.leasingissues.com -------------------------------------------------------------------------------------------- You may quote us without permission. We encourage you to send to a colleague. Leasing News is for everyone in the industry, from presidents, ceo, brokers, to contract administrators, funding administrators, customer service. We all started out learning the trade and worked our way up the ladder, or into business for ourself. We encourage you to pass our newsletter around, or sign up, as it is free. No advertising or banners. ------------------------------------------------------------------------------------------- Stress Relief You REALLY should tell people about the program you posted on your web site. Perhaps post it at leasingnews.org. I'm sure there are many brokers who REALLY need this! Doug Delack ddelack@usa.net <mailto:ddelack@usa.net> Alternative Finance, Inc. Tel 401-885-5531 Fax 401-885-5539 ( Doug, I hit it a number of times yesterday. What Doug is referring to is on the main page of American Leasing. I have the program on my workstation. To download it, go to http://www.americanleasing.com/exe/StressRelief.EXE -------------------------------------------------------------------------------------------- ( If you are in Southern California tomorrow, Wednesday, here is your chance to network, plus learn about attracting and keeping employees. You also may learn what you should be making in the leasing business today. ) March 21 Long Beach, California Wednesday Marriott Long Beach 4700 Airport Plaza Drive Here is your opportunity to attend at a "member price," by just mentioning Leasing News!!! Equipment Leasing Association
Topic: How Compensation and Talent Affect the Bottom Line Speaker: Teri Gerson, Executive Solutions for Leasing & Finance, Inc. Location: Marriott Long Beach, CA (4700 Airport Plaza Drive) Date/Time: Wed., March 21, 2001, 3-5pm for Presentation and Networking hosted cocktail reception 5-7pm Reservations: Jeanne Lund (703) 516-8366 (ELA) Host: Paul Nibarger, Nibarger Associates (310) 541-8609 Cost is $65 if you mention you read this in Leasing News (save $35). All attendees also get, for free: * Equipment Leasing Association Survey of Independent Leasing Companies---$99 value * Equipment Leasing and Finance Foundation B2B Report--$250 value door prices and other give away's and a "hosted" cocktail reception ------------------------------------------------------------------------------------------ ############################################################### Ampent(tm) Names Raymond L. Smith as New Chief Executive Former Fritz Companies, U.S Fleet Leasing and GE Capital Executive to Accelerate Ampent's Growth SAN FRANCISCO, CA. - March 20, 2001 - Today Ampent announced the appointment of Raymond L. Smith as its Chief Executive Officer and to its Board of Directors. Smith will focus on business development and strategy. Ampent's co-founder, Troy Klith, will continue to serve as President and Chairman and will oversee daily business operations.
Previously, Smith was CEO of Fritz Companies, one of the world's largest publicly traded supply-chain logistics corporations, with over 11,000 employees located in 115 countries and $1.6 billion in revenue. Fritz Companies recently announced its decision to sell the company to UPS. Prior to joining Fritz, Smith was President of U.S. Fleet Leasing, a subsidiary of Associates First Capital Corporation with over $1.6 billion in earning assets. During Smith's six years of leadership the subsidiary grew at over 25% per annum, generated its strongest profitability gains and was judged the industry leader for overall customer satisfaction and growth. Smith has also compiled a distinguished 15-year record at GE Capital where he was General Manager for private-label credit card programs, and responsible for business development of its fleet leasing and service business. "Smith's private-label credit background at GE Capital, his experience as president of U.S. Fleet Leasing and his leadership at public companies will help take Ampent to the next level," said Klith. "Smith's proven track record at successfully growing businesses into industry leaders provides a skill set that Ampent can use to achieve significant competitive advantages." "The $260 billion leasing market represents a great opportunity for a well-positioned company," said Smith. "Ampent's recent success in signing new partners is an indication of its solid business strategy, their excellent management team and their patent-pending technology which is laying the foundation for growth and market leadership." Additionally, Smith has won numerous civic and professional awards and has served as President and Chairman of the American Automotive Leasing Association. |