Kit Menkin's Leasing News   www.leasingnews.org  Wednesday, March 6, 2002

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Headlines----

 

 "Yes, we have no banana's for sale" at First International Bank

    You Guessed it---Fred Van Etten "This is Your life."

          Credit Reporting Industry Warns About False E-Mail

               National Leasing Introduces a New Identity

                 Bob T. Tells Kit M. About "New Website"

                   ELA San Francisco Conference Oct 13-15

                     Financial Federal Reports 19% Earnings

                      Denis J. Stypulkoski Joins The Alta Group

                       Krueger Joins Farm Credit Leasing Sr. Mgmt. Team

                      Amtrack Progress in NorthEast Needs Your Support

 

### Denotes Press Release

 

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"Yes, we have no banana's for sale" at First International Bank

 

First International Bank is still considering broker business, according to

UPS Capital spokesperson Irene Moore.

 

" We have consolidated the operation to service our UPS customers,"

she explained. " We have over 1.8 million UPS customers.  We want

to service them first."

 

The original premise is similar to American Express Business Finance Leasing

approaching American Express card customers.  In this instance, the customer

is a sender or receiver of UPS packages.   While a different department,

Irene Moore says there is an excellent customer relationship.

 

" If someone walks in the door, as you asked, and wants a lease, we

would be happy to be of assistance, " she explained.  "We also will

continue to consider other business applications as First International

has in the past."

 

First International Bank was formerly named First National Bank of New

England. It was sold to UPS Capital and is now First International Bank, a

UPS Capital Company. The web site is www.firstinterbank.com.

 

The officers we have spoken to have been "reassigned." Dennis Cesan is now

 working with the 100  or so bank loan officers to develop leasing business

from the UPS customer .  Other officers have gone into  direct leasing

sales. So although the company MAY be  taking broker business now and in the

future, it will not be through the same  First International Bank group we

worked with in the past.

 

Leasing News spoke to several sources, who did not want to be quoted, who

told us they were being assigned a territory, and his mandate is to sell

equipment leasing to existing UPS customers.  Leasing News learned Dennis

Cesen, is being given the responsibility of getting other producers at the

old First International Bank, who were previously selling SBA loans, etc.,

to start offering leasing as well.     

 

It did not sound as if they were laying anyone off, at the old 1st

International Bank.   It is more about reassigning people and making sure

that they are getting out in front of customers.     There did not seem to

be any "unhappiness" in the new assignment. The reaction was more " I still

have a job."  One person while very happy with the new assignment, did not

want to say anything on the record.

 

An article in the February 20th Wall Street Journal said they would now be

doing a lot of "cross-selling."  Of course, sending packages and making

equipment leasing decision often doesn't come from the same person at the

company, but saying you are from UPS, might get you past the secretary. 

Although on the other hand, if you have all this cash to invest in leasing,

why did you recently raise the UPS rates for sending overnight mail and

packages?

 

 ( While UPS Capital spokesperson Irene Moore was an excellent public

relations person for her company,  it did appear pretty vague. "we'll take

anything  that comes through the door" is a far cry from "we'll buy broker

business". It appears they are not the funding source they were before, and

assigning officers in the field instead of handling the desk, the entire

process, and emphasis will be toward existing United Parcel Service

customers.

 

 ( There is no truth to the rumor Federal Express wants to buy CIT. )

 

( Disclaimer: We use UPS more than Federal Express or Airborne, but our

driver has never approached us if we wanted to lease something.  I can hear

the telemarketers now, " If you liked the way we delivered your UPS package,

wait until you hear our automatic approval up to $250,000 on an application

only basis, as you have been a long standing customer of ours, YOU ARE

APPROVED---Ironically, when called, UPS does not give credit ratings on

accounts. editor ).

 

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Whatever Happened to....

 

                 Fred Van Etten

 

 

February 4th, Leasing News asked if anyone knew where Fred Van Etten

was?  He e-mailed and the next day, and February 6th, we printed his

response that he was in Houston, Texas.

 

http://www.leasingnews.org/archives/Feb2002/2-06-02.htm

 

When Mark McQuitty allowed us to print the abridged letter to

about the demise of Republic Leasing of Anaheim ( we had the

letter since October, but that is another story , including McQuitty's

brilliant observations on aggregate leasing and dot coms in December,

1999), it became public that the man sent to fire McQuitty as "branch

manager" in Apirl,2000, was also the same person he recommended in June,

2000 to become the new CEO and replace Tom Depping,

 

 Leasing News decided the readers should know more about this "very

interesting" person, especially since he was acknowledged  a key "mover and

shaker" to raise the money to start First Sierra/Sierra Cities.  

 

We also learned he was considering starting up a leasing company because

he and American Express made a settlement ( and that is also another story

).

 

"When you look up either "good guy" or "salesman" in the dictionary, you

will find a picture of Freddie Van Etten. Freddie always has a smile on

his face and the salesman's positive attitude that the cup is half full

instead of half empty. The only place you cannot trust Freddie is on the

golf course. His handicap is a 2, not the 19 he claims when the bets are

placed. Freddie, you are one of the best and I wish you the best of

success with your new venture with the Redstone Group."

       Charlie Lester, LPI Financial, Atlanta, Georgia

 

 

" Nicest man in the world; always has a smile on his face.  Always has

something nice to say about somebody.  I make it a point that when I am in

Houston  to visit him every time. Truly, a great guy."

     Greg McIntosh, Snider Leasing, Sacramento, California

 

Whatever Happened to....

 

   Fred Van Etten

 

 

Hello everyone_. As previously mentioned in Leasingnews.org, I am still in

Houston, Texas, and healthy, happy, wiser and still occasionally hitting the

little white ball on weekends. I am with The Redstone Companies, which is a

large privately held holding company comprised of several different

companies.

 

 Redstone has investments in companies involved in the banking, securities,

hospitality, real estate, golf management, development, and ownership, and

various others. Redstone as you may remember gave First Sierra Financial our

start from ground zero as the primary investment capital and were involved

in the company all the way through to the sale to American Express.

 

Most of you remember me from First Sierra as one of the founders (in fact my

wife, Julie gets credit for coming up with the name) but I had been in the

Leasing Industry prior to that for most of my career, beginning with

McDonnell Douglas Finance Corp in 1978. From Long Beach, California, I was

moved to Houston by MDFC in 1981 and I have been primarily here working in

leasing and asset finance since then.  That probably makes me one of the

longest surviving leasing nuts in this area! But at only 48 years old there

is still a lot of drive which keeps me going and enjoying the chase and the

relationships I have built in this business.

 

Having been an originator, seller, buyer, and manager with public and

private companies I have to marvel at the way our industry has changed, both

good and bad, throughout those years. Remember the TEFRA act in 1986?

Leasing was supposed to be finished then, but, as we have seen many times

the industry changed to meet the times, not disintegrated because of them.

 

 It seems that as most everything in life, things are cyclical, things tend

to repeat themselves in similar business cycles. Looks like now the industry

is going through what the Equipment Leasing Association describes as "The

Perfect Storm" brought on by credit and liquidity issues. This too shall

pass as soon as margins widen enough in our business to begin to re-attract

capital. The question is, who will the survivors be_

 

To me the one thing that has made this a great business is that it is people

oriented and relationship based. Doing business with people you know and

trust has safeguards. You have heard it said that the first lesson of

lending is to "know your customer"   Certain people have tried, and are

others are continuing to try and completely automate our business. Over the

last few years people proclaiming that the industry would be dead because of

the "New Paradigm" of E-commerce selling have so far been proven wrong.

 

Do I believe that more companies over time will use the Internet to promote

and inform customers? Of course, and will companies sell more in the future

over the Internet? Yes, of course, but the change won't take place over

night as many have predicted. People still buy stocks, cars, books and

everything else that the e-commerce wizards said would be automated, from

traditional sources, not purely from the Internet. So far the Internet is

only a fabulous information source.

 

Oh well, enough preaching_

 

Redstone has kept me very busy since arriving in February of 2001. Initially

I ran the business development activities at Northwest Bank, a wholly owned

Redstone Financial company. I was there until we sold it to The Whitney Bank

from New Orleans in October of 2001. I then moved over to Redstone Bank in a

similar capacity and have been working on all aspects of trying to help this

bank grow. Redstone Bank is only two years old and basically was a branch of

Northwest Bank. When we sold Northwest we decided to keep Redstone Bank.

 

We are now looking at re-capitalizing the bank, starting a holding company

and adding a few specialty finance companies under the bank holding company

umbrella. We are continually looking at all areas of specialty finance and

we have come to the conclusion that there are some very attractive areas

which we may be able to compete in on some selected basis. We should have

some announcements on those areas in the second quarter of this year.

 

Lot's of things going on in Houston right now (yes, other things than

Enron!!!) like the worlds largest rodeo, Mardi Gras in Galveston (OK, so

it's not New Orleans) and the excitement which is building for our new

football team, The Houston Texans. Don't worry, the games wont be played at

Enron field!! That's the Astros field.  Houston has had it's up and downs as

well, but for me it's always been a wonderful place to live and work.

 

Julie and I had the best holiday season ever, and we enjoyed being with all

our friends here and in Phoenix/Scottsdale where we spent Christmas and New

Year's. I continue to hear from and stay in touch with most of my colleagues

from the First Sierra days. In fact I think most people know that Roger

Gebhart previously EVP of First Sierra has joined us here at Redstone as

well.

 

One final note regarding Redstone, the Redstone Golf Club, a new development

here in Houston was just awarded the 2003 through 2013 Shell Houston Open

PGA tournament which was previously played at The Woodlands. It will bring a

lot of notoriety to Redstone and will help with that side of our business,

which manages and develops golf courses.

 

All my best to all my friends in the industry.

 

 

 

Fred Van Etten

Executive Vice President

Redstone Bank N.A.

713-316-3675

www.Redstonebank.com

 

 

 

 

 

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Credit Reporting Industry Warns About False E-Mail

 

    WASHINGTON, / -- Creditors and Consumers are being advised to be wary

of an e-mail message that has been circulating that contains false

information

about consumer credit reports.

 

 Contrary to the e-mail, credit reporting agencies do not provide personal

consumer data to "anyone who requests it." Federal law prohibits such a

practice.

 

    The toll-free number included in the e-mail is only for consumers who

want to remove their names from mailing lists for pre-approved offers of

credit generated by the major credit reporting companies.  That number has

been in effect and available to consumers since 1997.

 

    The same e-mail was circulated last July and the Consumer Data Industry

Association (Associated Credit Bureaus at the time) issued a news release

noting the message was in error.

 

Creditors and  Consumers can access the release by clicking

on "Media Room" at http://www.cdiaonline.org .

 

 

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National Leasing introduces a new corporate identity.

Winnipeg,- In a move to further strengthen its leading position in the

equipment leasing industry in Canada, Winnipeg based National Leasing

introduces a new corporate identity.

 

"Our new corporate identity symbolizes a company who is forward-thinking,

progressive, innovative and eager to meet the challenges and demands of our

customers," says Nick Logan, CEO and President. "The stylized "N" reflects

our goal to provide a myriad of product options and friendly, professional

service."

 

"On behalf of everyone at National Leasing, it gives me great pleasure to

introduce our new corporate identity. This new image accurately reflects our

vision for the future and supports our continued commitment to providing

proven financing solutions for our customers."

 

Headquartered in Winnipeg, Manitoba, National Leasing is 100% Canadian-owned

and operated with local offices and representation in thirteen centers

across the Canada. For more than 30 years, National Leasing has offered

proven financial solutions to business throughout Canada and the United

States. A recognized leader in equipment financing in every business sector;

including agriculture, health care, construction, manufacturing, computer

technology and office interiors, National Leasing has built a strong

reputation for innovative ideas backed by professional service.

 

For more information, please contact:

Grant Shaw

Marketing Manager

National Leasing

Phone:(204)954-9059

Toll Free: 1 800 665-1326

Email: grant.shaw@nationalleasing.com

 

( courtesy of ELAonline.com )

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Bob T.to Kit M. re "New Website"

 

Kit: It seems you have jumped the gun on the subject of the merger of

leasing associations. But what a stroke of genius for the name of the merged

group, "UAELB" !

 

 

Bob Teichman, CLP

Teichman Financial Training

3030 Bridgeway, Suite 213

Sausalito, CA 94965

Tel: 415-331-6445

Fax: 415-331-6451

e-mail: BoTei@aol.com

 

"Providing education and training to the equipment leasing and financing

industry."

 

Bob---

 

What typo?  What are you talking about?

 

The typo was right at the top in the mention of UAEL's new website.

 

Kit Menkin's Leasing News  www.leasingnews.org  Tuesday, March 5, 2002

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Headline---

 

 Leasing Innovations Wins San Diego BBB 2001 Award

   NAELB Proposes Multi-Association Committee

      New UAELB Website Up and Running

 

Bob---

 

Now how do I correct that???  Of all the things to screw up!!!!

 

The site is www.uael.org

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Equipment Leasing Association October 13-15 San Francisco Conference

 

The 41st Annual ELA Convention may be many months away, but planning has

already started for this premier event, scheduled October 13-15, 2002 at the

San Francisco Marriott, in San Francisco, California.  This year's theme,

LEADERSHIP MATTERS, emphasizes a renewed focus on what matters most. 

Leadership takes many forms. Individuals, companies, markets, systems and

products can all be examined in terms of their leadership characteristics.

 

 Nearly 30 sessions showcasing over 100 individuals and companies are

planned for each ELA convention. 

 

We invite you to submit your idea for a session at the 2002 convention.

 

 Submissions are due ELA by close of business April 8,2002.

 

 For your copy of the Call for Presentations, click here:

http://elaonline.com/events/2002call.htm

 

 You may also email jfianko@elamail.com to have the Call for Presentations

sent to you.

 

Thank you,

 

Michael Fleming, President

ELA

UPDATE YOUR INFORMATION WITH ELA

To update your personal information, areas of interest, and receive your ELA

USERNAME/PASSWORD visit:

http://www.elaonline.com/memberDir/Profile/IndivForm.cfm

 

 

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Financial Federal Corporation Announces Record Earnings For The Second

Fiscal Quarter Ended January 31, 2002

 

 

NEW YORK-- --Financial Federal Corporation ("FIF" - NYSE), a nationwide,

independent financial services company specializing in equipment financing

and leasing for middle market businesses, reported net earnings of $9.2

million for its second fiscal quarter ended January 31, 2002, a 19% increase

over the $7.7 million earned for the comparable quarter last year.

 

Diluted earnings per share for the quarters ended January 31, 2002 and 2001

were $0.50 and $0.43, respectively, a 16% increase. The increase in diluted

earnings per share was lower than the increase in net earnings, due

primarily to the effect that the Company's convertible notes had on the

diluted earnings per share calculation. New business originated during the

quarter amounted to $215 million. Finance receivables outstanding increased

by 12% to $1.38 billion at January 31, 2002 from $1.23 billion at January

31, 2001.

 

For the six months ended January 31, 2002, net earnings were $18.1 million

compared to $15.0 million for the comparable period last year, a 20%