January 9, 2001

Headlines---
  United Capital Sells Portfolio with "Vendors Not Paid?"
    Preferred Capital, "Yes, it is still not sold."
      "Recession Predicted" by Morgan Stanley Economist
        Advanta Still Has Leasing Division for Sale, but Sells Mortgage Company
          "Goodbye, Chris Ciarrocchi"
         BSB Leasing---It is Now Official!!!
           CoBank Implements ERisk's Web-based Software
             eMarket Expands Senior Staff
               Copelco Ex-Prez Establishes Lighthouse Capital
                 Louisana Gov. Edwards Gets Ten Years (Raiders to beat the Ravens)
                   VerticalNet's Head Leaves After 5 Months To Become CEO of Newell
                      ( Friday is "the" day for Sierra Cities )

complaints continue regarding United Association of Equipment Leasing Dues Increase---
( we are working on a feature to compare all leasing association dues and benefits )


Preferred Capital Is Not "Sold", despite rumors to the contrary.

It is true that a handful of CapitalWerks employees were in our Tahoe City office last week. We are still talking with CapitalWerks regarding a possible deal, but no deal has been signed yet. I'll keep you posted.

Mark A. Seif
General Counsel, Preferred Capital Corp.
MSeif@preferredcapital.com

United Capital

"It appears United sold off part of its portfolios to Old Kent, and this does not appear to include "approved deals" that are not funded. There are also some problems involved in this portfolio at Old Kent, I am told, some of the vendors on the portfolios have not be paid.. Now we have Kent saying that the lessee owes them a monthly payment, and the vendor saying that they haven't received a check."

name with held

In my experience in California, title can pass on equipment, even if the vendor has not been paid, and this is a "sticky wicket" for sure.

editor.

Internet View Point

I'm new to the leasing industry, but you are likely right on about it being "a relationship business."
I've learned that most business is about relationships. You've got to understand your customers. Who are they? What do they need? How do THEY want to use the internet?

You might be able to get away with starting a web site/business without knowing these things, but if you don't learn soon thereafter, you'll likely encounter trouble. They may visit and use the site once or twice, but you've got to find out --- quickly --- their likes, dislikes, and needs, and then revise the site accordingly.

People were perhaps fooled by the success of sites like ebay, which seemed to be a simple proposition of "if we build it, they will come."
In fact, the original-founder ebay employees spent an enormous amount of time answering customer emails, and addressing needs, and building a sense of community.

How did Cisco grow? By listening to their customers. They asked what the customers wanted, then went out and bought companies that had the products those customers needed.

Many internet founders/top management were great at building technically advanced web sites, or sensing an opportunity, or promoting a vision to a financier.

But they didn't spend the time to get to know their customers, or to quickly alter their offerings to suit the needs of potential customers. It doesn't take long, or a lot of money, to find out if you are going to have a viable business. Just ask your customers.

David
davecainsf@yahoo.com.

BSB LEASING, INC. ACQUIRES ASSETS FROM UNICAPITAL CORPORATION

DENVER, COLORADO, January 9, 2001 - Procure Financial Services, Inc. announced that it has acquired certain assets of The Myerson Companies, Inc. d.b.a. BSB Leasing, Inc. including the trade name "BSB Leasing, Inc." from UniCapital Corporation.

Donald A. Myerson, former president of UniCapital/BSB Leasing, Inc. will head the new management team for Procure Financial Services, Inc. d.b.a. BSB Leasing, Inc. as President. Bruce Zwillinger, former Vice-President of Broker Services for UniCapital/BSB Leasing, Inc. will serve as Executive Vice-President and Ron Gonzales, former Credit Manager for UniCapital/BSB Leasing will be Vice-President of Operations for the new company. Procure Financial Services, Inc. d.b.a. BSB Leasing, Inc. will continue to focus on providing flexible financial/funding solutions to brokers nationwide. For additional information contact BSB Leasing, Inc. at 800-945-3372.

SOURCE; Procure Financial Services, Inc. d.b.a. BSB Leasing, Inc.

United Association of Equipment Leasing

I feel it necessary to respond to several of the comments made in connection with the complaints raised against the UAEL, its leadership, and the recent dues increase.

I agree with Ms. Monosson that ELA provides far more bang for the buck, through I disagree with her contention that anonymities equates to cowardice. Some of us simply don't have the clout to risk alienation within the industry, regardless of the validity of our complaints.

Despite Mr. Rodi's contention that dues have been raised 5% in accordance with the association's bylaws, in fact our company's dues were raised by 9% from last year. So much for the board "working hard to limit the increase to the prescribed 5%".

Mr. Rodi's suggestion that "if this [and other things] causes some members to re-think their membership then maybe that's not a bad thing" is astounding and merely supports the perception that leadership is completely unresponsive and unreceptive to criticism. Although Mr. Rodi says that the problems inherent in the old leadership necessitated that someone "act like an adult", his comments are more akin to the schoolyard cry of children who don't like the way a game is going and threaten to "take their ball and go home".

Pity. This is not only Mr. Rodi's organization. It belongs, or belonged to all of us. Whatever has happened, or is happening, it is not good. The NAELB, once considered a poor stepsister to the estimable UAEL, has overtaken the UAEL in terms of quality and fulfillment of membership needs. As for the ELA, there is no comparison to be made, except that it costs more to be a UAEL member.

The "inner circle" can remain defensive and let the association further deteriorate, or it can respond, affirmatively and empathetically, to the many, many complaints about it. The future is still up in the air. One thing is certain though; the failure to recognize complaints, or to dismiss them out of hand for reasons based more upon ego than substance, is a surefire road to disaster.

-Anonymous

( We have several other anonymous or wanting name with held, and if I don't know the person, I don't quote them. There are a lot of complaints about the membership dues---evidently the web site has the old dues. I know this person. If I shared who sent this e-mail, the criticism would have greater significance. However, in this business of referrals, relationships, many business people find it more "prudent" not to sign their name. editor ).

This Person Signs Their Name

I agree completely with Deborah Monosson's and John Boettingheimer's comments. I joined WAEL back in1982. Was co-chair of the Broker's Committee in 1984, remained a member through 1994. Did not renew for four years, gave it another chance in 99. Won't join again under the present organization.

Going "National" was a STUPID mistake. The cost of belonging has become completely disconnected from the value(?) of the benefits. WAEL was and should be a WESTERN organization, openly run. When is the last time UAEL mailed the year-end financial statement of the organization to its members?

Forget running against ELA. Forget UAEL. Spend a few dollars printing new stationery with WAEL on it. Get back to basics. And maybe. maybe, the organization will get back the members it lost to NAELB. Remember the "Town Meetings" a few years back?

Claude Lanselle
President
The CL Group, Inc.
dba CLG Leasing
clglsng@pacbell.net
(323)953-1681

Morgan Stanley's Chief Economist Sees U.S. Headed for Recession

NEW YORK -- The record-long U.S. expansion that has lasted almost a decade is over, according to Morgan Stanley Dean Witter Chief Economist Stephen Roach. Roach has slashed his projections for both U.S. and global growth for 2001, and thinks the U.S. will post negative growth in the current quarter and the second, satisfying the technical definition of a recession set by the National Bureau of Economic Research. The last U.S. recession ended in early 1991.

Morgan Stanley economists estimate that gross domestic product will contract at a 1.25% annualized rate during the first two quarters. They're looking for a broad-based contraction in final demand early this year, with inventories correcting as a result. The U.S. grew in excess of 4% from 1997 through 1999, and likely exceeded 4% in 2000 as well. Roach also expects this recession will be short-lived, with the U.S. closing the year growing at a 4% clip.

For all of 2001, the firm expects GDP growth of 1.1%, down from their prior forecast of 2.5%. The firm's chief U.S. economist, Richard Berner, also sees a sharp downturn in the pace in high-tech investment. After growing at a 28% pace recently, information technology demand will fall to zero by the third quarter this year.

Roach noted, however, that the recession will not have some of the gloomy implications that past recessions have had, given the comparatively healthy state of the economy compared to prior recessions.

Given short and mild nature of the recession he is predicting, Roach said that credit markets, especially for corporate debt, are likely to continue functioning. 'Credit markets have already taken on board the risks of a very deep recession, and they haven't entirely seized. If we only have a mild recession, that leaves the credit markets a lot of room to improve.'

He also said that consumers will continue to benefit from such factors like the strong jobs market and low home financing rates. The slowing will be felt by consumers, but it will not be as painful as other recessions in history, he noted. 'Because we're coming out of such a strong growth period, it will feel a lot worse than it is,' Roach said.

'Imagine driving somewhere and breaking every speed limit, then you see the red lights in your rear view mirror and you have to slow down quickly. The deceleration is going to make you feel like you're flying through the windshield,' he added.

Sierra Cities waits on pins and needles regarding the value of Verticalnet Stock,
as the acquisition hangs on this, but in the meantime-----

VerticalNet's Head Leaves After 5 Months To Become CEO of Newell

By Joseph T. Hallinan and Joann S.Lublin, Staff Reporters of The Wall Street Journal After just five months as the head of Internet concern VerticalNet Inc., Chief Executive Joseph Galli Jr. is leaving the cyber world to become CEO of Newell Rubbermaid Inc. Mr. Galli, 42 years old, succeeds William P. Sovey, 67, who will return to his previous position as chairman of the Freeport, Ill., company. Mr. Sovey assumed the chief executive's job in November after John J. McDonough resigned. The appointment is effective today. "He's just what we were looking for," Mr. Sovey said of Mr. Galli. Among other things, added Mr. Sovey, "He's a man who understands brands."

Perhaps Eddie DeBartlo was smart to take the deal, even if it meant losing the S.F.49ers.

Former Louisiana Gov. Edwards Sentenced to 10-Year Jail Term

Associated Press BATON ROUGE, La. -- Former Gov. Edwin Edwards, the silver-haired gambler who wisecracked his way through two dozen investigations, was sentenced to 10 years in prison and fined $250,000 on Monday for extorting payoffs from businessmen applying for river boat casino licenses. Edwards, 73, showed little emotion as the decision was read. His daughters and wife sobbed behind him.
'A long sentence is effectively a death sentence,' said Edwards' lawyer Dan Small, who immediately filed notice of appeal. Edwards was ordered to report to prison Feb. 5, but a court battle is expected over whether he can remain free while he appeals. With a gag order finally lifted, Edwards gave a long interview on the courthouse steps, flatly denying the allegations. With characteristic wit, he also joked: 'I have to make arrangements to find Candy a new husband and pay my bills.' Edwards was convicted in May of 17 counts of racketeering, extortion, fraud and conspiracy. His son Stephen and three other figures were also found guilty. The younger Edwards was sentenced to seven years in prison and fined $60,000. His lawyer, Jim Cole, called it guilt by association. 'The jury's verdict is largely a product of Stephen Edwards' last name,' he said. 'He's swept along by whatever they think of his father.' The casino schemes took place after the Democrat was out of office in 1991, and continued through his fourth and final term as governor from 1992 to 1996 and after he left office but retained considerable political clout. The case came to light in 1997, when FBI agents raided Edwards' home and office, seizing records and more than $400,000 in cash. Prosecutors built their case on 1,500 hours of telephone conversations secretly recorded by the FBI and testimony from businessmen such as former San Francisco 49ers owner Eddie DeBartolo Jr., who said Edwards extorted $400,000 from him. Defense attorneys said there was no smoking gun tying Edwards to the scheme. Edwards used an uncanny political sense to become the most powerful Louisiana politician since Huey Long. The sharp-witted Cajun was a non smoking, Scripture-quoting teetotaler who loved high-stakes gambling, beautiful women and ribald jokes. And he was surrounded by hints of scandal.

Grand juries looked into his finances and campaign contributions in the early and mid-1970s. He was indicted in 1985 on racketeering charges stemming from hospital and nursing home investments. The first trial ended in a hung jury and the second in an acquittal. He arrived at court one day in a mule-drawn carriage, saying it represented the pace of the trial. The sense of humor never disappeared. In the latest case, after learning that the federal charges carried up to 350 years in prison, Edwards said: 'I can truthfully say if my sentence is 350 years, I don't intend to serve.'

So much information was amassed from the investigation that two more indictments followed the casino license charges. Edwards and others were accused of insurance fraud; two defendants have pleaded guilty. A third indictment accused former Houston Mayor Fred Hofheinz and others of bribery; Edwards was not charged but prosecutors said he profited from the scheme. Last month, U.S. District Judge Frank Polozola threw out six fraud convictions against the Edwardses. But he let stand the more serious racketeering and extortion counts against them. U.S. Attorney Eddie Jordan said he hasn't decided whether to retry the men on those charges. At Edwards' sentencing, federal prosecutor Jim Letten said Louisiana owes much of its reputation as a corrupt state to Edwards.

'People to this day think, thanks largely in part to Edwin Edwards and his co-defendants in this case, that Louisiana is a hostile and dangerous place to do business. It's the Edwards legacy,' he said.

The Edwardses' co-defendants, former gubernatorial aide Andrew Martin, cattleman Cecil Brown and businessman Bobby Johnson, all were sentenced to around 5.5 years in prison and fined $50,000 each.

--any side wagers the Oakland Raiders will be the Baltimore Ravens this Sunday?

--any double bets it will be the New York Giants vrs. the Oakland Raiders for the Super Bowl?

Advanta Still Has Leasing Division for Sale ( formally announced in October, 2000 )

( side note: from Chris Ciarrocchi

To everyone,

I have resigned as of January 9, 2001 from Advanta Leasing Services, to find another challenging position in sales / marketing. It has been a pleasure to meet each and everyone one of you.

Thank You and please keep in touch.

Chris Ciarrocchi
609-266-0455
cciarrocch@aol.com

J.P. Morgan Chase Unit to Acquire Advanta's Mortgage Business

EDISON, N.J. -- Chase Manhattan Mortgage Corp., a unit of the newly merged J.P. Morgan Chase & Co., said it agreed to acquire the mortgage business of financial-services concern Advanta Corp.

Financial terms of the cash transaction weren't disclosed. The deal is expected to close in the first quarter, subject to approval by Advanta (ADVNB, ADVNA) shareholders.

For Chase Manhattan (JPM), based in Edison, N.J., the proposed acquisition will bolster its presence in the higher-risk mortgage business. Chase said the deal would enhance its position as a leading originator of non prime mortgages in the U.S. The Advanta non prime servicing portfolio is one of the largest in the nation and includes Chase's non prime portfolio, which Advanta has been sub servicing.

The acquisition includes a $15.8 billion mortgage-loan servicing and sub servicing portfolio, as well as other assets. The mortgage operation has about 1,800 employees and serves more than 200,000 customers.

"Extending mortgage credit to traditionally under-served groups using sound principles and practices for granting and securing credit is the foundation of fair and prudent lending," Luke Hayden, Executive Vice President at J.P. Morgan Chase, said in a prepared statement. "This acquisition will expand Chase's platform, enabling us to better serve borrowers who do not meet traditional credit standards," Mr. Hayden added.

"This strategic transaction is an excellent outcome for our shareholders, customers and employees," Dennis Alter, Advanta's chairman and chief executive officer, said in a written statement.

Mr. Alter said the sale also will allow Advanta to concentrate on the small business market, primarily through its credit-card business.

At 4 p.m. EST on the Nasdaq Stock Market, Advanta's class-B shares were up $ 1.63, or 21%, to $9.50.

Advanta, of Spring House, Pa., announced in late October that it had accepted a "proposal" from an unidentified "major financial institution" to buy Advanta's mortgage portfolio -- equivalent to about one-third of the company's total assets -- for a price greater than the portfolio's book value, which Advanta had declined to disclose.

Advanta also announced in October that it was soliciting bids for its leasing operations as part of that plan.

CoBank Implements ERisk's Web-based Economic Capital and RAROC Software

NEW YORK--(BUSINESS WIRE)--Jan. 9, 2001--

New ERisk solution delivers powerful risk management analytics

that effectively link risk, capital, and shareholder value

ERisk, a leading provider of Web-based Enterprise Risk Management (ERM) analytics for senior management, announced today that CoBank, a $24 billion cooperative bank that specializes in financial solutions and leasing services for agribusiness and rural communications and energy systems has successfully implemented ERisk's ERM Analytics, an enterprise-wide risk management framework and application service provider (ASP) offering.

CoBank joins the ranks of forward-thinking banks that are measuring risk on an enterprise-wide basis, and linking these risk measures to required (economic) capital. ERisk's ground breaking model enables CoBank to measure and aggregate all risks - credit risk, asset/liability mismatch risk, market risk, and operating risk. ERisk's approach incorporates world-class analytics licensed from Oliver, Wyman & Company, the leading management consulting firm specializing in financial services.

Paul Kern, Vice President of Risk Management at CoBank, says the bank expects to benefit in many ways, from improving its portfolio risk management and identifying credit concentrations, to assessing the profitability of business lines and pricing risk into individual projects and products.

"At CoBank, we already have a risk management mentality, and believe we understand our risks," Kern says. "But developing complicated, enterprise-wide models in-house isn't practical for us. Through ERisk we obtain access to expertise, models, and personnel along with a set of benchmark data that's been tested over time. Together, with the application service provider model, it fit our needs and situation," he added.

The Application Service Provider model means that the bank will be able to feed updated sets of risk data into a robust enterprise-wide risk management model built and maintained by ERisk. According to Kern, CoBank's shift towards a more robust economic capital methodology will help it maintain a leadership role within its banking niche.

The ERisk solution should also help the bank manage the credit risk in its portfolios even more effectively. According to Doug Wilhelm, Vice President of Risk Management, CoBank is one of the largest lenders to agribusiness and rural America and provides significant financing to a relatively narrow customer base such as agricultural cooperatives and food-processing companies. Although we lend large amounts to individual companies our relatively small customer base requires us to look outside our own historical experience when we want to relate our internal credit scores to statistically derived probabilities of default and loss. The new framework has helped us transform our relative credit scores into hard numbers and analytical models necessary for calculating its risk-adjusted return on capital."

This more sophisticated approach also fits in with the latest proposals by the Basle Committee on Banking Supervision for the reform of bank capital adequacy rules. The proposals, which are being finalized over the next few months, have encouraged many banks to re-examine their internal credit ratings process - and to explore how to calibrate credit scores against statistical measures of default risk and public credit ratings. Banks that might want to use their internal credit ratings for capital allocation will be expected to use the same process throughout their risk management and decision-making processes.

According to Peter Nakada, Vice President of Business Development at ERisk, CoBank was the ideal customer for ERisk's new analytics product offering. "The bank had a clear desire to begin measuring their risks on an enterprise-wide basis. Working in close partnership with CoBank's leadership team, we were able to achieve our goal of producing results in a short two month time frame. CoBank's senior managers are already using these results as inputs to their business strategies and critical decision-making."

About CoBank

CoBank is an internationally recognized cooperative bank that has been lending to some of America's most successful businesses since 1916. It is part of the $91 billion Farm Credit System, the largest lender to US agriculture and rural America. It specializes in cooperative, agribusiness, rural communications and energy systems, offering a broad range of flexible financial solutions and leasing services. Headquartered in Denver, Colorado, it has banking centers across the US with representative offices in Mexico City, Singapore, and Buenos Aires. The company web site is located at www.cobank.com.

About ERisk

ERisk, a venture of the management consulting firm Oliver, Wyman & Company, is a full-service provider of strategic risk management solutions including ASP-based analytics, risk transfer advisory, and consulting services. ERisk's ERM Analytic solutions are available for banks, insurance companies, asset managers, energy companies, and other non-financial corporations. The company sponsors a growing community of over 12,000 risk professional via its web portal at www.erisk.com. For more information regarding our ERM Analytics software, please contact Peter Nakada at 212-819-0170 or pnakada@erisk.com.

CONTACT:
ERisk
Tony Marcos
917/522-1619

eMarket Capital Adds Senior Executives

KING OF PRUSSIA, Pa., Jan. 9 /PRNewswire/ -- eMarket Capital, Inc. (http://www.emarketcapital.com), a business-to-business intermediary committed to helping manufacturers close more deals by making competitive lease financing available to their customers, has bolstered its senior executive staff with four appointments, including that of Kyle J. Cunningham as chief financial officer. The company also named Tamra L. Felling vice president, operations, Dean Stolberg vice president, business development, and Daniel E. Murphy II secretary, general counsel and manager for strategic relationships.

"These tremendously talented people will add valuable knowledge and experience to our company's operations," said Jonathan Moran, CEO and founder of eMarket Capital.

Kyle J. Cunningham, a C.P.A. with over ten years experience in systems, planning and finance for high-tech companies, is responsible for all aspects of financial management and oversight. He joins eMarket Capital from Johnson Matthey PLC, a $6 billion international manufacturer based in the United Kingdom.

Tamra L. Felling is responsible for customer service, facilities management, human resources and other aspects of operations. She has 20 years of experience in operations management and has held numerous senior positions with the supply division of General Electric Co.

Daniel E. Murphy is a commercial contracts litigator who has worked for seven years with law firms in Washington, D.C. His duties include negotiating and drafting key contracts with program vendors and lenders, ensuring compliance with applicable laws and regulations and managing risk. He is also responsible for identifying and pursuing innovative vertical business relationships to enhance the company's financial service offerings and maximize the value realized by the company's customers and program vendors and lenders.

Dean Stolberg brings 24 years of sales and sales management experience to eMarket Capital. For 7 years, he was the owner of Advanced Leasing Concepts, an equipment leasing company. He was also vice president of sales for Judicate, a mediation and arbitration business in Philadelphia. Stolberg is in charge of business development with responsibility for cultivating relationships with manufacturing companies.

About eMarket Capital, Inc.

eMarket Capital provides private label leasing services that help manufacturers close more deals by making competitive lease financing available to their customers. The company uses a patent-pending Web-based process to enable equipment manufacturers to help their customers secure the fairest and most competitively priced lease financing plan for their purchases.

Customers fill out a single application to receive multiple offers from lenders over a two-day period. Data is submitted to the customer in a format that simplifies the process of making an "apples-to-apples" comparison and subsequently selecting the leasing deal with the most attractive terms.

The service targets capital equipment purchases from $5,000 to $1 million. Transactions in this range are most easily adapted to the Internet, and they comprise over 50 percent of the overall market, which is expected to grow 5 to 8 percent a year.

For more information visit the Web site at http://www.eMarketCapital.com.

SOURCE eMarket Capital, Inc.

CO: eMarket Capital, Inc.

Former President of Copelco Starts Lighthouse Capital

Lighthouse Capital has commenced business activities as a direct lessor of small ticket leases for its own portfolio as well as for syndication. The Company will also provide consulting services, primarily for start-up leasing companies and other lessors interested primarily in the medical marketplace.
Alan N. Frankel will serve as president and COO of Lighthouse Capital and is also the majority shareholder of the Company. Frankle has previously been president and COO of Copelco Leasing and American Business Leasing. He has over thirty years of equipment leasing experience and is a recognized authority on the area of healthcare equipment leasing. Since 1984, Frankel has written an article on the state of healthcare leasing in the United States for the World Leasing Yearbook. Frankel has also served on the Board of Directors of the Equipment Leasing Association of America where he was a member of the Executive and Finance Committees. "Lighthouse Capital will provide assistance to new lessors in the areas of personnel, marketing and operations," said Frankel. "In addition, it will work with both new and existing leasing companies who have an interest in the complex and dynamically changing healthcare market to bring the knowledge learned over more than three decades of experience in this sector. Lighthouse Capital will also be developing its own portfolio of small ticket leases through an end-user approach."

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