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Kit Menkin's Leasing News
www.leasingnews.org Wednesday, March 6, 2002 ----------------------------------------------------------------------- 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 _____________________________________________________________ "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 ). --------------------------------------------------------------------- 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 ______________________________________________________________________ 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 . ________________________________________________________________ #### ########################################
############### 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
) #### #################################
########### 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 ------------------------------------------------------------------------- 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 _____________________________________________________________________ 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 #### #################################
##################### 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% |