Headlines---

 

  Anthrax Scare—a Hoax?

    RW Professional Leasing to Sue Kit Menkin as Individual

                   and LeasingNews.org  as a corporation.

       Early Bird Registration Deadline for  Association for

               Government Leasing and Financing

                   eCredit Gets 10 Million Bucks from ICG

               Microsoft has XP-But American On Line has Version 7

       Equipment Leasing Association Conference Breakdown   

     Fortune 500 Companies May Get Tax Refunds Worth $25 Billion      

Frequently Answered Questions—http://www.leasingnews.org/FAQ/FAQ.htm

 

### denotes press release

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Anthrax Scare—a Hoax?

 

 Ananova :

 

 

FBI has received 2,300 anthrax reports in 16 days

 

The FBI has received 2,300 reports of suspected anthrax attacks since the start of the month.

 

FBI director Robert Mueller said the overwhelming majority have been false alarms or hoaxes.

 

He said efforts are being made to track down and prosecute the pranksters.

The FBI has charged a Department of Environmental Protection employee with making false claims during an anthrax hoax in Connecticut.

 

If convicted, 48-year-old Joseph Faryniarz, of Coventry, Connecticut, faces up to five years in prison.

 

Officials claim Faryniarz stood by and watched the people being evacuated, knowing it was a hoax.

 

He is not accused of planting the powder, thought to be coffee whitener.

US Attorney General, John Ashcroft, said: "These hoax attacks create illegitimate alarm in a time of legitimate concern.

 

"The perpetrators of these hoaxes should know the penalties for their crimes are real. The Department of Justice takes these offences seriously. We will find the hoaxers and prosecute offenders."

 

Meanwhile, investigators are looking at similarities between two letters which did test positive for anthrax.

 

Mr Mueller told reporters there are handwriting similarities in the letters sent to NBC in New York and Senator Tom Daschle.

 

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Frequently Answered Questions

 

http://www.leasingnews.org/FAQ/FAQ.htm

 

New feature we have added.  This was originally suggested by a reader.

 

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RW Professional Leasing to Sue Kit Menkin as Individual and LeasingNews.org

 as a corporation.

 

             VIA Facsimile (402-727-3851  AND) REGULAR MAIL

        

             Christopher Menkin

             % American Leasing

             348 Mathew St.

             Santa Clara. CA 95050-3114

        

             Dear Mr. Menkin:

        

                  We represent RW Professional Leasing Service Corp. and we are writing to express our  client’s great concern over the representations being made on your internet website known as   WWW.leasingnews.org, claiming that RW Professional has filed for bankruptcy protection. This is  absolutely false and, of course, defamatory to the business reputation of RW Professional.

         

                  My client has directed me to file an immediate lawsuit for defamation against you resulting  from these false statements which you saw fit to publish on your website prior to obtaining official confirmation through bankruptcy records, or even verifying the matter with RW Professional

        

                  At a minimum, we are hereby demanding that you print a retraction withdrawing any claim  that RW Professional Leasing Corp. has filed for bankruptcy protection. This can easily be  confirmed by contacting the Bankruptcy Courts in any state and especially the State of New York whore RW is based.

        

                  Moreover, we hereby demand that you identify the sources of the information you claimed   to have relied upon in making your untrue statements so that we may contact them in order to correct  their misunderstandings and false assertions.

        

                  To demonstrate the seriousness of this matter, I am enclosing a draft Complaint which we  intend to file in the Supreme Court. County of Nassau in the event that an immediate resolution as  outlined above is riot obtained. Please contact me immediately with the names of the sources, as  well as a copy of a proposed retraction, so that we can place this matter to rest without the need for  litigation.

        

                  If we don’t receive a written and satisfactory response to the above by October 15, 2001,   we will have no choice but to take appropriate legal action.

        

                                          Very truly yours,

                                          Girvin & Ferlazzo,PC

                                     By                     

                    Salvatore D. Ferlazzo

                     attorney@rgflaw.com

 

enclosure

 

Leasing News has asked for a statement, confirmation or denial, of

a rumor floating around the leasing community four separate times,

twice with Mr. Ferlazzo, who stated in our first conversation, he would get  a comment from his client and we would print it unedited. The second time he told us he appreciated the fact we printed the company was not filing for bankruptcy on

Tuesday. He was also working on getting a comment or statement.

 

He then called and left a voice mail that they are going to proceed

as their purpose is to find out who asked the question, or who made

claims, that RW Professional had filed for protection from the bankruptcy court.

We could not find out this information via www.bankruptcy.com  and the

records in New York Courts appeared not be to be current.

 

Mr. Ferlazzo then wanted to subpoena our file server as he believes the file server

will have a record. This is “mechanically” not correct. I did return his telephone call but the office was closed at 5pm, Eastern time. We have attempted now on

two occasions with Mr. Ferlazzo to find what “written and satisfactory

response”  he would like to have.

 

Number one, we never said the company had filed bankruptcy.  Number two, we would not divulge who sent us this information; however, it is academic as it came via our “contact form” that does not require a person to sign it.  The server would have no knowledge as the form of communication was over the internet via our website.  There is no manner to trace it, even if we would agree to it.

 

We will not divulge any source nor we will allow our server or records

to be searched  as we believe it is against the right of free speech.

 

We are working on two stories about RW Leasing, which we discussed with

Mr. Ferlazzo regarding Old Kent Financial and American Express/Sierra Cities,

two separate stories and with the demise of Old Kent Financial, we legally believe

any agreements are no longer binding as the company does not exist.  We also

are able to collaborate with three direct sources ( not hearsay ) about Old

Kent, plus we now have four direct sources, not hearsay, with the American Express/Sierra Cities story.  The Securities Exchange Commission is reportedly

also looking into the American Express/Sierra Cities matter(s,)  we are told.

 

Mr. Ferlazzo would like us to tell him more, but we have not written the story, let

alone put on line, and have made no secret to readers what we are pursuing. We

are going to print the facts when we believe they are all accurate.

 

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Early Bird Registration Deadline for  Association for Government Leasing

and Financing

 

Dear AGL&F Members:

 

The Early Bird Registration Deadline for the Fall AGL&F Annual Conference is

tomorrow October 17th. Please make sure that you register with AGL&F now to

receive the discounted Early Bird Rate for the Fall Annual Conference.  We

look forward to seeing everyone at the Loews Ventana Canyon Resort in

Tucson, Arizona - November 7 -9 - for what promises to be a spectacular

event at which to network and learn.  Rooms at the Loews Ventana Canyon

Resort are almost sold out.  Act now to avoid any inconvenience.

 

Reminder:  Lawyers Panel at 10:30 AM on Friday November 9th - email your

questions or hot issues to be discussed to lawyerspanel@aglf.org and we will

have the answers there! Please call or email us to receive additional

registration materials.

 

Please call the Loews Ventana Canyon Resort at 520-299-2020 today and make

your room reservations, be sure to mention you are with the AGL&F to receive

the $229.00 per night guaranteed rate. This room rate has been extended

again for one last time until this Friday, October 19th.

 

Thanks very much!

 

Cordially,

 

Graham Hauck

Executive Director

Association for Governmental Leasing and Finance

1255 23rd Street, NW

Washington, DC 20037

202.742.AGLF (2453)

fax: 202.833.3636

email: gsh@aglf.org

http://www.aglf.org

 

Non-members are very welcome at the conference.  For registration materials,

they can call or email AGL&F Headquarters 202.742.2453, info@aglf.org

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Equipment Leasing Association Conference Breakdown   

 

We are looking forward to a strong meeting in Boca Raton, FL. "When the Going Gets Tough" is the theme of our ELA 40th Annual Convention which will take place Oct. 28-30. Our registration breakdown is as follows:

 

846 Leasing Co execs

121 Exhibitors

 98 Spouses

1, 065 CONVENTION TOTAL

 

Please note that ALL of our available exhibit space is sold out and we have about 15 companies on a waitlist for exhibit space.

 

For more information on the ELA 40th Annual Convention, please visit http://www.elaonline.com/events/2001/annconv/

 

Amy J. Miller

Vice President, Communications

Equipment Leasing Association

 

www.elaonline.com, www.leaseassistant.org

 

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eCredit Gets 10 Million Bucks from ICG

 

eCredit.com announced it has received a $10 million commitment in new financing from Internet Capital Group. This funding supplements ongoing sales revenue to provide a strong foundation for eCredit to execute on strategic customer and product priorities.

eCredit is a leading expert in credit processing and decision solutions that manage risk and deliver financing options at the point of sale. It has a strong customer base that includes financial service organizations including CIT Group, Textron Financial and others, as well as Fortune 1000 companies such as Ryder System, Procter & Gamble and Chevron.

"eCredit continues to stand out in providing innovative credit and underwriting solutions that enhance risk management while driving financial liquidity in commerce," said Ken Fox, co-founder and managing director at Internet Capital Group and eCredit.com board member. "We believe the strength of the company's management team, customer base and track record of delivering real returns to its customers, makes this funding a very attractive allocation of ICG's resources."

According to Chris Richmond, president and CEO at eCredit, "eCredit offers customers a strong value proposition providing financial tools that help companies make better credit decisions, which are essential in today's business environment. The company leverages a significant business opportunity by targeting multiple markets with similar needs. In these markets, eCredit has proven domain expertise and built a record of success with customers. Today's investment is further validation of the company's strategy and commitment to deliver long-term benefits to customers."

For additional information, visit eCredit.com on the Web at www.ecredit.com.

 

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Microsoft has XP-But American On Line has Version 7

 

America Online, Inc., the world's leading interactive services

   company, on October 16 announced the launch of its new version, AOL

   7.0, which integrates local programming into every part of the

   service, provides easy access to high-speed audio and video content,

   and introduces breakthrough music and entertainment features to extend

   AOL's hallmark convenience and ease-of-use.

 

Bad News Continues----

 

Year-long U.S. output slump fans recession worries

 

 

By Jonathan Nicholson

REUTERS

 

WASHINGTON – Adding to fears that the U.S. economy may be in a recession, the Federal Reserve Tuesday said industrial production fell for a 12th straight month in September, its longest losing streak since World War II.

In separate reports also out on Tuesday, two weekly retail sales measures showed consumers cautiously returning to chain stores.

The Fed said overall output of the nation's factories, utilities and mines fell 1.0 percent in September, the biggest monthly drop since June. The last time there had been a similar unbroken series of declines came in a string that extended from November 1944 to October 1945, the Fed said.

Factory output alone, which makes up the largest portion of industrial production, fell 1.1 percent, its 11th decline in the past 12 months.

Analysts said the Fed report reflected the beleaguered shape of the nation's manufacturing sector, which has been in its own slump since late last year. While economists had hoped manufacturing was beginning to show signs of life in recent months, the Sept. 11 attacks on the United States are now thought to have reduced demand – in turn delaying, at best, any upturn in production.

"Although there have been some positive reports from shopping malls and hotels in recent days, it still seems inevitable that the spike in job losses in recent months has begun another round of cutbacks in sales, orders and output – the classic self-reinforcing process that defines a recession," said David Orr, chief economist with Wachovia Securities in Charlotte, North Carolina.

Stocks were marginally higher in early afternoon trading after the reports' release. The Dow Jones industrial average was up by 6.09 points while the tech-laden Nasdaq index was up by 13.63 points.

"HARBINGER" OF THINGS TO COME?

Tuesday's downbeat reading comes on the heels of two earlier reports suggesting consumer spending, one of the main engines of the economy, was not holding up well before or after the Sept. 11 attacks. On Friday, the Commerce Department said September retail sales fell 2.4 percent. On Monday, Commerce also said inventories at the retail level grew 0.6 percent in August, indicating store shelves were already bulging before the attacks.

"Clearly, the uncertainty during the weeks following the terrorist attacks has severely downgraded the near-term outlook for businesses and consumers, especially in making large-scale purchases," said David Huether, chief economist for the National Association of Manufacturers.

"Increased anxiety in the country suggests that today's report is a harbinger of things to come in the next several months," Huether said.

The focus will remain on the consumer, analysts say. But two weekly reports on chain store sales also released Tuesday gave some hope that shoppers are carefully coming back to stores.

A weekly index compiled by the Bank of Tokyo-Mitsubishi and UBS Warburg was virtually flat in the week ended Oct. 13, compared with a 0.8 percent drop in the prior week. Similarly, the separate Redbook Retail Sales Average saw a 0.6 percent gain in the retail month ended Oct. 13, compared with the same period in September.

Speaking in New York, Federal Reserve Vice Chairman Roger Ferguson said the extent of the economic damage done by the attacks remains unclear.

"Spending appears to be recovering from the initial cutback, but of course it is too early to assess how great the influence will be in the medium term," he said.

STIMULUS SUCCESS UNCERTAIN

The increasingly dark tone of the first monthly set of economic data since the Sept. 11 attacks has set policymakers in Washington scrambling to find ways to prop up the economy.

For example, the Federal Reserve has cut interest rates nine times this year and is expected to reduce them again at its next meeting on Nov. 6.

Lawmakers on Capitol Hill have already appropriated billions of dollars since the attacks and are debating a new round of tax cuts designed to boost consumer spending and business investment. Whether those actions can forestall a recession, or only make one less painful, is unclear.

"It is doubtful that firms will ramp up production until they are certain that consumers are back in the markets for an extended period of time," said Joel Naroff, president of Naroff Economic Advisors Inc.

Wachovia's Orr said he thinks the U.S. has already entered a "moderate" recession that will last until spring 2002, barring any further attacks. But the uniqueness of the Sept. 11 attacks has made forecasting more difficult than usual, he said.

 Intel profits fall 96 percent but meets expectations

 

 

By Matthew Fordahl

 

SAN JOSE – Chip-making giant Intel Corp.'s third-quarter profits fell 96 percent but met Wall Street expectations, despite a sluggish economy that has worsened since the Sept. 11 terror attacks.

For the three months ended Sept. 29, the company earned $106 million, or 2 cents per share, compared with $2.51 billion, or 36 cents a share, in the same period a year ago.

Excluding acquisition-related costs, net earnings were $655 million, or 10 cents a share, compared with $2.9 billion, or 41 cents a share a year ago.

The results met expectations, according to a survey by Thomson Financial/First Call.

"Intel delivered solid third quarter results in a turbulent environment, with revenue and microprocessor units up from the second quarter," said Craig R. Barrett, Intel's chief executive.

Third quarter revenue fell 25 percent to $6.5 billion, compared with $8.7 billion a year ago. Analysts were expecting third-quarter sales of about $6.4 billion.

During a mid-quarter update in early September, Intel said third-quarter revenue was on track with forecasts provided in July. The company made no comments on results after the Sept. 11 attacks.

The company said it expects fourth-quarter revenues to be between $6.2 billion and $6.8 billion, compared with $8.7 billion in the same period last year. Analyst were expecting $6.8 billion.

More details were expected later Tuesday after Intel's quarterly conference call with analysts.

The third-quarter earnings were released after the market closed.

Shares of Intel closed up 58 cents Tuesday to $24.96 on the Nasdaq Stock Market. In after-hours trading, shares fell 14 cents to $24.82.

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Knight Ridder earnings fall 27 percent; attacks partly to blame

 

 

By Seth Sutel

 

NEW YORK – Knight Ridder's net income plunged 27 percent in the third quarter as the Sept. 11 attacks led to a steep drop-off in newspaper advertising and higher costs associated with increasing news coverage.

Knight Ridder, the nation's second-largest newspaper publisher after Gannett Co., on Tuesday reported net income of $55.7 million for the three-month period ending Sept. 30, compared to $76.1 million in the same period a year ago.

Revenues slumped 10 percent to $693.1 million from $769.2 million.

Per-share profits were 65 cents, in line with guidance the company issued a month ago and 2 cents above the estimate of analysts surveyed by Thomson Financial/First Call. Year-ago earnings were 87 cents.

Knight Ridder's chairman and chief executive Tony Ridder said in a statement that the Sept. 11 attacks cost the company a total of $10 million, including $9 million in lost advertising revenue, after accounting for temporary increases from condolence ads, and additional costs of $2 million for extra editions and creating more space for news. Offsetting those costs were added circulation revenues of $1 million.

Other newspaper publishers and media companies have also been affected by the slumping advertising market, which was made far worse by the Sept. 11 attacks on New York and Washington. But so far Knight Ridder has offered the most specific details on the direct financial impact of the attacks on its bottom line.

Ridder said the attacks reversed a slight comeback in retail advertising. That combined with an already soft market for general advertising and help wanted ads turned September into a "memorably bad month," he said in a statement.

In a separate report also issued Tuesday, Knight Ridder reported that total advertising revenues at its newspapers fell 16 percent in September compared to the same month a year ago. Year-to-date advertising revenues were off 7 percent.

Ridder said that while the company's prospects had started to look up in the weeks after the attacks, they fell back again once the U.S. bombing campaign began in Afghanistan. But he noted that cost savings from a downsizing effort announced in April were paying off, and he also said newsprint costs were heading lower.

He did not specifically lower the outlook for the company's full-year earnings, which currently stand at $2.91 per share, as measured by Thomson Financial/First Call, but he noted that there still exists a "harsh revenue environment" and that achieving full-year earnings goals would be contingent upon "resumption of more normal business patterns."

Investors seemed to take the news favorably, sending Knight Ridder's shares up 90 cents to $58.02 in early afternoon trading on the New York Stock Exchange.

Knight Ridder, which is based in San Jose, Calif., publishes 28 newspapers in major markets across the country, including the San Jose Mercury News, The Miami Herald and The Philadelphia Inquirer.

For the first nine months of the year, net income fell 67 percent to $109.8 million compared to $333.2 million in the same period a year ago, while per-share figures fell to $1.28 from $3.71. Revenues were off 7 percent to $2.17 billion from $2.33 billion.

  

On the Net

 

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Caterpillar  Financial Reports Good News ( hurray!!! )

 

Caterpillar Financial Services reported record revenues of $425 million and profit after tax of $68 million for the third quarter of 2001. Revenues increased $41 million or 11 percent compared with the same period last

year, primarily related to increased gains on sales of receivables and revenues from increased equipment on operating leases. Increases in revenues were partially offset by a decreased yield on the portfolio, which is related to the lower interest rate market.

The $25 million increase in third-quarter profits, up 58 percent from one year ago, resulted principally from increased gains on sales of receivables and a higher spread on the portfolio.

New retail financing was $1.6 billion, a third-quarter record. The 26 percent increase from the same period last year was primarily due to increased financing in North America and Europe.

Past dues over 30 days were 3.4 percent, a slight decrease from 3.8 percent at the end of the same period one year ago. Write-offs of bad debts exceeded recoveries by $13 million during the third quarter of 2001 compared to $5 million during the third quarter of 2000.

"The growth in new retail financing reflects the success of our strategies to extend our products to a broader range of customers worldwide," said James S. Beard, a Caterpillar vice president and president of Cat Financial. "We continue to benefit from the lower interest rate environment while managing credit losses, which are in line with our expectations."

STATISTICAL HIGHLIGHTS:

THIRD-QUARTER 2001 VS THIRD-QUARTER 2000

(ENDING SEPTEMBER 30)

(Millions of dollars)

2001, 2000, % CHANGE

Revenues - $425, $384, 11

Profit - $68, $43, 58

New Retail Financing - $1,618, $1,287, 26

Portfolio - $14,313, $13,176, 9

FIRST NINE MONTHS 2001 VS FIRST NINE MONTHS 2000

(ENDING SEPTEMBER 30)

(Millions of dollars)

2001, 2000, % CHANGE

Revenues - $1,223, $1,061, 15

Profit - $165, $115, 43

New Retail Financing - $4,815, $4,037, 19

 

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Thacher Proffitt & Wood Gains New Partner           

                                                                                                                                                                                                         

Charles Douglas Bethill Joins the Firm’s Corporate & Financial Institutions Group

 

-- NEW YORK – Thacher Proffitt & Wood announced today that it continues to build on the strengths of its Corporate & Financial Institutions Group with the addition of Charles Douglas Bethill as a partner in its New York City office. Mr. Bethill comes to Thacher Proffitt from Milbank, Tweed, Hadley & McCloy with over 25 years of broad corporate, securities, banking, leasing, licensing and litigation experience, and with particular expertise in the law of securities custody, processing, clearance and settlement.

"We are delighted to welcome Chuck Bethill to our corporate team as we continue to expand our corporate practice.  We are particularly pleased that he is joining us as we rebuild our new Manhattan office in the wake of the attacks on the World Trade Center," said Jack Williams, managing partner of Thacher Proffitt.  "Chuck adds a new dimension to our corporate practice with his solid experience in commercial law and the clearance and settlement of securities transactions."  The Firm’s New York City offices were previously located in Two World Trade Center and now are located at 11 West 42nd Street.

 

 

( courtesy of ELAonline.com )

 

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Bank One earnings jump 30 percent, Wells Fargo and Mellon miss  targets

 

Bank One Corp. and Wells Fargo & Co. reported Tuesday that their

earnings rose in the third quarter, but Wells missed analysts'

expectations by 2 cents a share. Earnings at Mellon Financial Corp.

fell and were below analysts' projections.

Bank One also disclosed that it had cut an additional 2,690 workers.

On Monday, Bank of America in Charlotte, N.C., said its profits

fell more than 50 percent in the third quarter, but the results

still came in slightly ahead of analysts' expectations.

Wells Fargo & Co. said its third-quarter profits rose 42 percent as the West's biggest bank cashed in on a home lending boom fueled

by falling interest rates.

The San Francisco-based company earned $1.16 billion, or 67 cents per share, up from $821 million, or 47 cents per share, a year earlier. If not for the bank's acquisition of Utah-based First Security Corp., earnings per share would have been 5 percent higher, Wells said.

The results lagged the consensus earnings estimate of 69 cents

per share among analysts surveyed by Thomson Financial/First Call.

Wells' shares fell 37 cents to $40.40 in afternoon trading on the New York Stock Exchange.

Wells' mortgage division propelled the bank's third-quarter performance.

''With mortgage rates at historically low levels, we are seeing unprecedented levels of applications,'' said Mark Oman, executive

vice president of mortgage and home equity.

But like other banks, the frail economy hurts Wells, as businesses and consumers begin to default on loans. The bank's

non-performing assets increased 9.5 percent, or $155 million,

during the third quarter to $1.79 billion. A year earlier, Wells'

problem loans totaled $1.62 billion.

For the first nine months of the year, profits were $2.24

billion, or $1.29 a share, down from $2.9 billion, or $1.68 a

share, a year earlier.

Bank One Corp. on Tuesday reported its strongest quarterly results since pulling out of a deep slump, posting a 30 percent increase in profits as aggressive cost-cutting continued to pay off.

The report by the Chicago bank exceeded Wall Street expectations

for the nation's sixth-largest bank holding company.

Separately, the bank said it had cut an additional 2,690 workers, raising to about 8,000 the total let go since James Dimon

took over as chairman and chief executive a year and a half ago.

The latest job cuts came through layoffs and attrition and reduced

Bank One's work force to 75,800.

The company reiterated that it plans to take a $200 million charge in the fourth quarter for additional severance and real estate costs, which it did not detail.

Bank One shares climbed $2.17, or more than 7 percent, to $32.52

in afternoon trading on the New York Stock Exchange, regaining much

of what the stock had lost after the Sept. 11 attacks jolted the

economy.

Net earnings for the third quarter were $754 million, or 64 cents a share, up from $581 million, or 50 cents a share, a year

earlier.

Dimon said that expenses were down slightly even with the acquisition of the Wachovia credit card business.

''Our efforts to reduce costs, manage credit exposure and invest

in key businesses are paying off,'' Dimon said.

However, he warned that the events of Sept. 11 are likely to weaken the economy and credit quality over the coming quarters.

The results marked the third consecutive moneymaking quarter for

Bank One after a year-and-a-half slide.

''It's more clear this quarter that the turnaround really is on plan,'' said Susan Roth, an analyst for Credit Suisse First Boston.

''It's clear these guys are getting their act together.''

For the first nine months of 2001, net income was $2.01 billion,

or $1.78 per share, up from $1 million, or a loss of 1 cent per

share, a year earlier.

Bank One said its loan loss reserve increased to 2.73 percent of

loans from 1.75 percent a year ago.

In Pittsburgh, Mellon Financial Corp. reported third-quarter earnings slightly below analysts' expectations as the company contends with weakened equity markets and the sale of its mid-Atlantic retail banking business.

Excluding banking businesses being sold to Citizens Financial Group, Mellon reported profits of $178 million, or 39 cents a share, down from $195 million, or 40 cents a share a year earlier.

Analysts polled by Thomson Financial/First Call had predicted

earnings of 41 cents a share.

In afternoon trading, Mellon shares were up a penny at $31.85 on

the New York Stock Exchange.

For the quarter, assets under management totaled $547 billion,

up slightly from $546 billion in the previous year.

Mellon continued to lose money on equity investments as markets

dropped 15 percent from this time last year. The company lost $20

million before taxes, compared with a gain of $20 million a year

ago, and has lost $157 million in the first nine months of the

year. In the first nine months of 2000, it earned $57 million on

equity investments.

For the January-September period, profits from continuing operations were $479 million, or $1 a share, compared with $580

million, or $1.17 a share, a year earlier.

Mellon Financial provides mutual fund management, global custody, asset management and other financial services through

subsidiaries such as Dreyfus Corp. and The Boston Co.

On the Net:

http://www.wellsfargo.com

http://www.bankone.com

http://www.mellon.com

 

Washington Mutual Announces Record Quarterly Earnings and Continued Strong Operating Fundamentals; Board

of Directors Increases Cash Dividend

 

    SEATTLE--Washington Mutual, Inc.

(NYSE:WM) today announced record third-quarter earnings of $832.3

million or 94 cents per diluted share. Earnings for third-quarter 2000

were $452.5 million or 57 cents per diluted share.

 

    Earnings for the third quarter of 2001 included full-quarter

results from the former Fleet Mortgage Corp., which was acquired on

June 1, 2001, as well as the former mortgage operations of The PNC

Financial Services Group, Inc. and Bank United Corp. These

acquisitions were accounted for as purchase transactions; therefore,

the operating results of the acquired institutions are not included in

prior periods.

    Highlights of the recent quarter include:

--

A return on common equity of 23.64 percent;

--

A 76 percent increase in net interest income over last year

        driven by a substantially improved net interest margin and the

        contribution of the company's recent acquisitions;

--

Strong gains from mortgage loans of $275.4 million, as well as

        gains of $317.1 million from securities and $124.9 million

        ($75.4 million after-tax) from the liquidation of interest

        rate hedges, reflecting the company's natural business hedging

        and interest rate management strategies;

--

Strong noninterest income, including a 30 percent increase in

        depositor and other retail banking fees;

--

Record loan volume of $47.22 billion, including a 201 percent

        increase in single-family residential (SFR) loan volume and

        a 16 percent increase in other loan volume, year over year and

        including the company's recent acquisitions;

--

Record checking account growth of more than 197,000;

--

An operating efficiency ratio of 41.29 percent.

    "Despite the slowing economy and the effects of the tragedies of

Sept. 11, Washington Mutual posted an impressive quarter," said Kerry

Killinger, the company's chairman, president and CEO.

 

    "Low interest rates continued to have a positive effect on our net

interest margin and contributed to extraordinarily strong growth in

fee income generated from the sale of fixed-rate residential mortgages

originated by our company," said Killinger. "We also continued to

generate solid results in other key areas of business, including

account and household growth, loan originations and noninterest income

generated from retail banking fees.

 

    "In light of the slowing economy, we also took steps to further

strengthen loan loss reserves and adjusted our loan underwriting

criteria in selected geographic markets."

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