Monday, January 31, 2011
Today's Equipment Leasing Headlines
Do you want to become extinct?
Changes that are coming
######## surrounding the article denotes it is a “press release”
and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
Do you want to become extinct?
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"The real U.S. Bank Equipment Finance story"
(The title comes from an unsigned letter sent by US Mail to Leasing News without
The real U.S. Bank Equipment Finance story
A few of us at US Bank Equipment Finance would like to give you the 'real' story related to layoffs, departing senior leaders and 'who' is ultimately responsible for the remaining $9B in assets.
Sal Maglietta continues to lead the integration of both the Portland Equipment Finance Group (middle market transactions over $250,000 and approximately $4B in assets) and the Business Equipment Finance Group (comprised of 4 separate small ticket divisions and approximately $4.4B in assets).
The integration continues to go very well under Sal's direction and leadership. US Bancorp will emerge as a premier funding source, supporting various market niches, customer and products. You won't find a lessor more committed to the overall leasing and finance market space than US Bank.
Please realize Manifest Funding has been and is only a small portion of the US Bank Equipment Finance total assets, approximately 15% and shrinking for good reason. Manifest was 1 of 5 operating divisions in with BEFG (Manifest, Office Equipment, Healthcare, Vendor, Bank Services and Portfolio Services). Each group was run by a General Manager responsible for all sales, marketing, collections, credit decisions, etc.
During 2008-2009, Manifest Funding Services was the majority (over 70%) of Business Equipment Finance Groups charge off's due to poor credit decisions and "stressed" niche markets served.
Manifest was lead by Curt Kovash from 2006-2010 until he assigned to other responsibilities in the summer of 2010. Kovash now reports to Tom Ellis in the Vendor Group having been removed from Manifest.
Manifest, under Kovash's direction was 100% responsible for all operational and sales components outside of shared services (tax/legal/finance) including ALL credit decisions, all portfolio collection, sales and marketing, etc...
Manifest Brokers DID NOT cause these issues, it was the leadership and decisions made by Kovash and staff at Manifest that allowed this to happen and cause the pain to the broker lessor space. They did not react to changing market conditions soon enough. Had managerial control been moved away from Manifest Leadership sooner, the Manifest Group's outcome would have been very different.
The now departed Adrian Hebig (COO), Dave Verkinderen (current GM of BEFG Office Equipment and Machine Tool Finance), Tom Landmark (BEFG Portfolio Analytics), were all instrumental in the 'clean' up of Manifest and the problems incurred.
Hebig left the organization on great terms with US Bank and Maglietta. His departure was not the result of the problems at Manifest or within BEFG, it was his choice to move on to the next opportunity.
Joe Andries was pushed out of the organization due to lack of operational control, risk to US Bank and sheer leadership challenges.
Landmark remains with the organization in a portfolio analytics position to insure what happened at Manifest does not happen again. He has a focused role within the small ticket groups.
Verkinderen continues to lead the Office Equipment Group and the Portland Machine Tool Group as part of the reorganization. He reports to Tony Cracchiolo. Verkinderen is the Sr. onsite manger for the Marshall, MN office. Most if not all of us, are excited about the future at US Bank. We have had our challenges, but we have survived the storm 10X better than our competition.
US Bank is capital rich and very interested in growing profitable assets on a consistent and repeatable basis. We hope this clarifies and provides a clearer picture of the NEW U.S. Bank Equipment Finance Group.
The letter above makes public what Leasing News has been reporting with a view to me that does not understand what has been happening in the finance and leasing industry.
To lay the entire blame on one person is not fair as it takes a team, everyone doing their best, to make a success. When the market changes, you change with it or become extinct just as Darwin’s “Survival of the Fittest."
Curt Kovash was contacted by email for a comment, but none received.
Let me be Mr. Kovash’s advocate.
The National Association of Equipment Leasing Brokers for two years in a row voted US Bank Manifest and Curt Kovash in the Monitor Online award as the best company to do business with. Kovash also served on the National Equipment Finance Association Board of Directors and was very active in the industry.
He arrived at his position August, 2005, not 2006 as the letter states, following:
"(8/05) President and Chief Executive Officer of U.S. Bancorp Equipment Finance William Purcell leaves to become Chief Operating Officer at Aequitas Capital Management
(8/05) Curt P. Kovash named new Senior Vice President and General Manager (8/05) Brad Peterson Joins Pentech Financial Services, Inc. Vice President – Navigator Business Programs. The former General Manager - US Bancorp Manifest Funding Services, Peterson brings over 15 years of experience in lease sales and management to this strategic position. (3/2004) Brad Peterson New US Bancorp Manifest Sr. V-P & Gen. Mgr. (3/04) Brian Bjella as Senior Vice President and General Manager, resigns to form a Company with Ken Noyes: Grandview Financial, which consists of Quest Resources, headquartered in New Jersey. Bjella will remain in Marshall, Minnesota, where the company will grow, keeping the current staff and operations in New Jersey. This is a 50-50 partnership, according to Brian Bjella, who said, “It has always been a dream of mine, but I never actively pursued anything because I love working for Manifest. The right opportunity never came around until now, and it is one that I need to follow. “I am excited to have the opportunity to grow my own company, “he added, “but it is very difficult for me to leave Manifest - it is a great organization with great people.” (4/2002)Troy Molitor resigns as General Manager. He follows Don Polfiet...Chris Canavati. Good men that Manifest does miss. (3/2001) changes name to U.S. Bancorp - Manifest Funding Services. Manifest Group- (9/1/2000) purchased by US Bancorp Leasing and Financial, "...a win for all the parties involved," Brian Bjella. (11/2000) Donald Polfiet leaves and no one knows where he went. If you know, please tell us." (Last we heard, he was CEO of Falcon Leasing, Foley, MN. Editor)
If anything the above changes in management of Manifest perhaps go back to Mary Jane Lindholm, when Lyon Financial was sold to US Bank. Executives grew up from the ranks. There was a comraderie, a team effort. New brokers visited Marshall to get acquainted. Reps visited brokers all over the county, inviting new brokers and working on programs. It was personal relationships. The unsigned letter above gives more credence that that is lost.
Certainly, the market has changed. Let’s go back to when the first signed occurred, and Leasing News wrote about it, earlier than 2008 in the monthly Al Schuler housing reports that readers often asked why do we have these as what does it have to do with leasing? Former leasing executive Steve Chriest wrote February 3, 2006: “Bad Moon on the Rise.”
“"In our current situation, the housing industry has generally been credited with propping up an otherwise wobbly economy for the past several years. With the large number of interest only, adjustable rate, no money down, no income verification, and no credit required loans written over the past few years, and the reality of stagnant or declining house values, it seems inevitable that the housing industry will contribute mightily to the bad moon rising."
Look at the date the college and university financial officials would declare historically as the start of the slide to the bottom of the recession.
(Compiled from National Association of Credit Managers reports)
It should be noted this also was a time that leasing companies began shutting down broker business with the first being GE Capital.
And the housing market decline was serious, too.
It was also the time of the rash of "Trigger Leads," leasing companies buying leads of credit run by leasing companies and calling the customer with a lower rate. The internet had changed that from fax to fund to internet with documents and funding and 15 minute approvals (that’s what Great America does.)
While mass software leads and telephone marketing grew, their customers started closing, laying people off, and both the construction and land development was to affect not only banks but Wall Street itself, from restaurants and it seemed only franchises were bulletproof, so everyone went after them.
NorVergence changed leasing, which Leasing News warned about as court decision became more consumer oriented than business; “Hell and high water contracts” were becoming a thing of the past.
The last time I spoke with Kurt it concerned:
"March, 2009 Lyon Financial dba U.S. Bancorp Manifest Financial Services, a wholly owned subsidiary of U.S. Bank, lost a case to Christopher Rural Health Planning with the jury in Franklin County, Benton, Illinois awarding the plaintiff $59 million. The suit goes back to 2005 regarding software leases. When the vendor went out of business, the lessee could get no service on the software, so stopped the lease payments. The case was tried in a very small community in Franklin County where a jury found in favor of the lessees that Manifest was responsible for the software not being up-dated and maintained."
The March 2009 date is significant as it coincided with a series of major changes in the leasing industry, such as the announcement of Paul A. Larkins resigning as CEO of Key National Finance and Key Equipment Finance, Superior, Colorado (FDIC shows $106.5 million charge off year-end 2009 lease financing receivables). (http://www.leasingnews.org/archives/March%202009/03-18-09.htm#resign) as well as Pentech Financial basically out of funds to lease with Navigator Financial lead by Ron Wagner, CLP, closing down (supported by US Bank Manifest turn-downs.) Many banks got out of leasing altogether, others cut off brokers, and even leasing entities ended broker programs.
Smaller companies such as Balboa stopped broker business and LEAF, among others, was headed down the road of extinction.
At the same time Leasing News announced changes at US Bank:
"Michael J. Rizzo, President & CEO, Business Equipment Finance Group, executive vice president at U.S. Bank, formerly President and CEO of Lyon Financial Services (now known as U.S. Bancorp Business Equipment Finance Group), is no longer focusing on the leasing division. Dave Verkinderen is the General Manager of that division. Adrian Hebig is the Chief Operations Officer. Both are considered peers."
It appears the major changes happened July, 2010 as Leasing News reported U.S. Bancorp Oliver-Allen group, Larkspur, California operation office moving to Portland, Oregon, affecting 60 employees, reports of auditing problems, sales administrative problems, lawsuits by ex-salesmen, one sales lady claim costing US Bank $1.2 million over $27,000 commission not paid; several executive problems, too,
Then the reporting on changes at US Bank Manifest, letting people go, as the letter above addresses, as well as cutting brokers who were not sending in a million a year in business or had more write-offs than others. The move was finally made official with this copy of an email to a broker, it was official. July, 2010 cutting back brokers (http://leasingnews.org/archives/July2010/7_02.htm#manifest)
The latest is cutting back of SIC industries, such as physical fitness and other types of business, as well as franchises due to large loses, it is reported. Much of this comes from brokers who email Leasing News, "Where do I go now?" with LEAF, Marlin, and now Manifest gone with the good rates and liberal approvals.
The letter does not blame the brokers, but the reality is they are the ones taking the hit by US Bank Manifest. The credit model of US Bank Manifest is the culprit. It did not keep up with the marketplace. The company appears headed toward extinction.
Christopher “Kit” Menkin, Editor
Mary Jane Lindholm Found
Bank Beat---US Bank Acquires 38 Branches in New Mexico
The 38 branches of First Community Bank, Taos, New Mexico, were closed with U.S. Bank, (NYSE:USB) Minneapolis, Minnesota, to assume all of the deposits.
“This acquisition is an extension of U.S. Bank's banking franchise into its 25th contiguous state, and it immediately establishes us as one of the top three banks in terms of market share in the attractive New Mexico market. It is a great fit for both companies since First Community Bank and U.S. Bank share a similar community banking model which will help to ensure a smooth transition for customers and employees,” noted John Elmore, executive vice president of community banking at U.S. Bank.
He told the Santafenewmexican.com in a telephone interview late Friday why First Community Bank had failed: "You can look at their financial statements and see that they had very heavy commercial investments in commercial real estate with a lot of it being outside of the New Mexico market."
"New Mexico is a state we have always looked at and been desirous of trying to find the opportunity to become a major player in the state," he said. "... Because of the problems they had, they were not able to invest and do some things maybe in some of the markets that they would have liked ... so we will be looking at additional investments."
First Community Bank was first founded in 1922 in Taos under the name First State Bank. It was acquired by First Community Bank in 1988 and at its height, it included 62 branches in four states.
December 31, 2008 the bank had 813 full time employees, but by September 30, 2010 it was down to
494 full time employees, according to FDIC records. Founded January 1, 1922, there were 12 in Albuquerque, five offices in Santa Fee, two each in Belen, Clovis, Las Cruces, Rio Rancho, Taos, Arizona, and two in Phoenix Arizona, plus one in Sun City, Arizona. They also had a branch in Bernalilo, El Prado, Gallup, Grants, Los Lunas, Moriarty, Placitas, and Portales.
Bank equity 2008 was $254.7 million, 2009 $146.5 million following losses of $149.2 million year-end 2008 and $107.98 million 2009 after charge offs of $80 million in construction and land development, $14.2 million secured by nonfarm nonresidential properties., $8.9 million 1-4 family residential properties, $7.4 million commercial and industrial loans, a total of $113 million in charges offs as well as $247.7 million in non-current loans.
September 30, 2010 found the bank equity down to $52 million from $254.7 the previous quarter in 2009. The bank had also lost $98.1 million September 30, 2010 with $259.3 million in non-current loans after charging off $102.5 million ($65 million in construction and land development, $23.9 secured by nonfarm nonresidential properties, $6.3 million in commercial and industrial loans, $5 million secured by 1-4 family residential properties, $886,000 to loans to individuals, $$534,000 secured by multifamily residential properties, and $729,000 secured by farmland. Tier 1 risk-based capital ratio: 2.68%.
As of September 30, 2010, First Community Bank had approximately $2.31 billion in total assets and $1.94 billion in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank, National Association agreed to purchase essentially all of the assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $260.0 million.
Bank President goes down with his own bank.
The four branches of Evergreen State Bank, Stoughton, Wisconsin with McFarland State Bank, McFarland, Wisconsin, to assume all of the deposits. The bank was formed October 1, 1899 and had 53 full-time employees with three branches in Stoughton, one in Janesville and one in Sun Prairie.
Among the 100 shareholders who lost money was the bank President and CEO Jim Farrell, who according to the Wisconsin State Journal, filed for Chapter 7 less than a month ago, December, 2010. He reportedly had purchased a large amount of stock in the bank, borrowing heavily from two local banks to make the purchase.
He reportedly borrowed more than $2 million in his effort to capitalize the bank and keep it in business.
Equity year-end 2008 was $27 million, $22.3 million year-end 2009, and $3.2 million September 30, 2010. The bank had lost $2.35 million year-end 2008, and $3.5 million year-end 2009 with $12.3 million noncurrent loans.
September 30, 2010, Non-current loans had risen to $17.3 million and the bank was showing a $21.1 million loss September 30, 2010 after $6.2 million in real estate charge offs ($2 million in nonfarm nonresidential property, $1.7 million in multi-family residential property, $1.46 million in 1-4 family residential property, $1 million in construction and land development, but the largest, $4.6 million in commercial and industrial loans.
Tier 1 risk-based capital ratio: 1.26%
As of September 30, 2010, Evergreen State Bank had approximately $246.5 million in total assets and $195.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, McFarland State Bank agreed to purchase essentially all of the assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.8 million.
Closed but no bank taking over
FirsTier Bank, Louisville, Colorado, was closed Friday by the Colorado Division of Banking and became the second bank this year not to be taken over by another bank. The office will remain open until February 28, 2011, to allow depositors access to their insured deposits and time to open accounts at other insured institutions.
This is the second bank to fail in Colorado this year. Last week saw the eight branches of United Western Bank close, the first billion dollar plus banking failure of 2011.
The bank was formed June 30, 2009 and had 9 offices, one in Boulder, Broomfield, Denver, Greenwood Village, Louisville, Loveland, Parker, Westminster, Adams County, and Westminster, Jefferson County. There were 102 full time employees.
Gerald Billings, a senior ombudsman specialist for the FDIC, told Fox 31 (KDVR.com), "The bank failed primarily because of the real estate development loans that they made not being able to repay the bank, "Bank equity had dropped from $62.5 million year-end 2008 to $25.7 million year-end 2009 with $160.1 million in noncurrent loans. The bank had lost $36.25 million year-end 2009 after $6.4 million charge off in commercial and industrial loans, $1.6 million in construction and land development, $978,000 in 1-4 family residential properties, and $776,000 in nonfarm nonresidential properties.
September 30, 2010 noncurrent loans were $145.7 million with net equity down to $1.6 million (2008 was $62.5 million) and a loss of $16 million following charge offs of $11.9 million in construction and land development, $1.66 million in nonfarm nonresidential properties, $198,000 farm land, $335,000 in 1-4 family residential properties and $1.9 million in commercial and industrial loans. Tier 1 risk-based capital ratio: 1.59%.
Note: Year-end FDIC numbers were not available, and assuming from other reports, there is more losses, as Coloradodaily.com reported: "Earlier this month, FirsTier bought back Calmante Rock Creek, a benighted luxury townhome development in Superior, in a foreclosure auction. FirsTier had financed Calmante with $10 million in loans." It certainly would have given the bank a negative net equity and the high noncurrent loans show there would be more defaults coming.
Beginning today, Monday, depositors of FirsTier Bank with more than $250,000 at the bank may visit the FDIC’s Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.
As of September 30, 2010, FirsTier Bank had $781.5 million in total assets and $722.8 million in total deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $242.6 million.
Should not have been closed?
Here is one that does not appear on the surface it should have been closed; however, The First State Bank, Camargo, Oklahoma, was closed with Bank 7, Oklahoma City, Oklahoma, to assume all of the deposits.
Established September 29, 1911, the bank had 8 full time employees with agricultural specialization. The bank looks like it is the middle of no where, survived the depression, the great dust storm of Oklahoma, and from its financial statement to the FDIC seems to be healthy. Perhaps its only negative is its location.
"Population 115...The median income for a household in the town was $23,750, and the median income for a family was $36,875. Males had a median income of $32,083 versus $28,125 for females. The per capita income for the town was $20,417. There were 20.6% of families and 24.3% of the population living below the poverty line, including 20.0% of under eighteens and 46.7% of those over 64."http://en.wikipedia.org/wiki/Camargo,_Oklahoma
Bank net equity had risen from $2.3 million 2008, $2.96 million 2009, and $3.2 million September 30, 2010. The bank made $32,000 year-end 2008, $757,000 year-end 2009 with noncurrent loans of $95,000, after charging off $296,000 to individuals and $68,000 commercial and industrial loans. September 30, 2010 net profit was $666,000 after charges offs of $380,000 in loans to individual and $66,000 in commercial and industrial loans with noncurrent loans $147,000. The financial numbers look healthy and the Tier 1 risk-based capital ratio 8.79%. There is perhaps more to the story, but not found on line.
As of September 30, 2010, The First State Bank had approximately $43.5 million in total assets and $40.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, Bank 7 agreed to purchase essentially all of the assets.
Tier 1 risk-based capital ratio 8.79%
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.1 million.
Tracking Bank Failures Map:
List of Bank Failures:
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Top Stories---January 24--January 28
Here are the top ten stories opened by readers:
(1) LEAF Commercial Credit under Way
(2) Archives January 24, 2003—25 year Anniversary
(3) Fifth-Third Bank Leasing Charge Offs
(Tie) (4) Bank Beat---First Billion Dollar plus Banking Failure 2011
(4) New Trends in Leasing
(5) Leasing Business Leaders are Positive about 2011
(6) WikiLeak? Market Trends Small Ticket Leasing
(Tie) (7) Leasing 102 by Mr. Terry Winders, CLP
(Tie) (7) New Hires---Promotions
(8) John Roscoe Pleads Guilty in "Cigarettes Cheaper" fraud
(9) Two More: Evergreen---ELFA Small Ticket Council
(10) Dog Walks Kit on a Beautiful Day in California
Vendor Support Agreements
Usually when a vendor has a high margin and fells strongly about a poor credit risk they will offer recourse to encourage the lessor to fund the transaction. Recourse is a very complex issue and therefore requires proper documentation. There are many types of recourse such as; full recourse, limited recourse, dealer participating non recourse, and rent to lease/own programs, and remarketing agreements.
Full recourse is a term that means the seller of the equipment guarantees the performance of the lessee, and if the lessee defaults, is prepared to cover the loss of the funding source. Full recourse allows some transactions that would normally be turned down to be acceptable, but the recourse document needs to be carefully drafted. The agreement must cover many points to establish where, and when, the responsibilities of both parties are effective. For instance, when does the vendor cover the loss, and most important how much? Is the recourse to cover all recovery costs or just the net present value of the unpaid lease payments? If late charges are unpaid are they included in the payoff? Who pays for the recovery costs and if a replevin action is necessary who pays the attorney and court costs. Plus who makes the decision on when to pull the plug? In addition, once the equipment is in the possession of the vendor, and it takes some time to remarket, is the balance paid to the lessor upon re-possession or after it is remarketed. If after remarketing, how long is the remarketing going to take and should a time frame be attached?
Good communication about the scope of the recourse is necessary to make sure both parties to the agreement are fully aware of what part each plays, and who has the power to make decisions.
The days of self-help repossession are long gone and it takes a replevin action to get the legal right to go after the equipment. Some States still allow self help repossession but the risk it represents, if not done correctly, make it a very poor approach. If a Lessee voluntarily surrenders the equipment even then a legal statement, defining the lessee's request you take the equipment with acceptance of continuing responsibilities, needs to be signed to have the right to obtain recover a loss.
Collection costs have raised the bar on the value of recourse today, because if the lessee defaults, the expense of repossession and remarketing add so much to the balance that if it is done correctly, and explained completely, most vendors shy away from it. The equipment must carry a high resale value to make recourse work and a tight reign on delinquency is necessary to avoid letting time slip away. Done with poor documentation a disagreement will always arise with the vendor and it will destroy a good vendor relationship.
Recourse can work if the transaction is a direct finance lease for the lessor so the only consideration is the unpaid balance and the recover costs. If the transaction is a true lease with tax lease considerations then the pay off is larger and makes it almost impossible to come out clean if a default occurs. The best way to reduce the risk is with a security deposit or increased payments in the early years to reduce the balance as soon as possible.
Once in a while the vendor will offer “Limited Recourse” to cover the first two years, or one third of the lease term, to help the lessee prove his ability to pay the lease payments. This is a lessor decision but it still required that you properly document the agreement so if a default occurs, both parties understand their responsibility
A popular recourse arrangement is one were the vendor receives a commission on each transaction but it is held in reserve against any losses. It is called a dealer participating non- recourse arrangement. A dollar amount, or a percentage of the outstanding portfolio, is assigned so that at the end of each year any funds in the account over the selected amount can be paid out to the vendor. The incentive to the vendor is that with few or no losses he gets the full commission. This puts the vendor in the decision tract on what limited credits are acceptable. If the losses are small then the reserve handles the loss and both the lessor and the vendor are covered. However, a proper document is required just like a full recourse agreement to establish timing and cost allocations.
Rent to lease/own programs place the vendors recourse on a short time frame and the lessee's payment on an elevated payment schedule to cover the risk. These are not done for poor credits but for start ups and lessees with short histories. An example is to subtract the wholesale value of the equipment after six months of use from the selling cost. Then create a rent period for six months at a lease payment that will reduce the balance to the wholesale value. The vendor is on full recourse for the six months and then a non-recourse finance or lease program for a longer period of time is offered at a much lower payment amount. The theory is that if the lessee could make the higher payments for six months then the lower payments should be OK and by that time a good equity has been placed into the equipment lowering the risk to the lessor.
The last effort for support is to ask the vendor for remarketing. If they agree an agreement should be drafted to spell out all of the issues such as: commissions paid for the remarketing effort, time in inventory, get ready charges, insurance, advertising costs, and storage. If the commission is not at an equal par with those paid for normal inventory you can expect your equipment to be stored and probably take a very long term to sell.
Vendor support is a good program under the correct set of circumstances but should not be thought of as a way of shifting the burden of risk. Lessor's are better equipped to make credit and equipment judgments and some times good intentions can lead to loss business because usually bad credits will mean a high degree of loss for someone and as my mentor in the business said; Life is to short to do business with companies of low character.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at email@example.com or 502-649-0448
He invites your questions and queries.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
Saluting Leasing News Advisor Board Chairman Robert Teichman, CLP
The Leasing News Advisory Board does not participate in editorial decisions, meaning reviewing or choosing stories or subjects. Their role is to participate with policy and business advice as well as contribute in discussions on matters brought up by the publisher in a private internal blog.
Bob was appointed by Kit Menkin as chairman May 8, 2005, primarily to recognize him as our number one good will ambassador. Kit has known him for thirty-eight years since the early 1970's when he was President of Dividend Leasing, Santa Clara, and Bob was the champion salesman, just out of Crocker Bank Leasing. Later roles were reversed when Kit sold him deals at various funding companies he represented. He also tutored him to pass the Certified Leasing Professional test, but could never get Kit to run the HP calculator correctly.
Bob joined the Leasing News Advisory Board July 7, 2000. He was actually involved in the "perception" of the newsletter before this date, making many contributions before we went “on line.”
He is the one readers call with the most complaints, or wanting the editor to print a press release or explain what was written. Perhaps he started to get the calls as at one time he wrote about all the leasing conferences for Leasing News, wrote many articles, "pal'd around" with Kit at conferences, where many learned he was a very close friend.
Many don't know Bob is quite a musician, a dancer, and choral singer.
Robert Teichman, CLP
Bob Teichman, CLP, was born in New York City. After attending the High School of Music & Art and the New York College of Music, he received his undergraduate degree from Columbia College.
“I studied music for a lot of years. I even played piano professionally while in college (local 802, American Federation of Musicians, James C. Petrillo presiding!), “he added. “I have kept up my interest in music by singing in a local chorus for the past 27 years. There are about 100 of us and we give concerts several times a year, mostly pre-20th century composers like Bach, Haydn, Mozart, Beethoven. But we do get away from the 18th and 19th centuries. At a recent concert we performed 15th and 20th century music.” He pursued his graduate studies in Geneva, Switzerland.
"55 years ago, when I was a graduate student in Geneva, I met my wife Patricia," he wrote. "She was working at the UN and she and I were members of a group of expatriates- Americans, British, Russians, Swedes, mid-Easterners- who all hung around the same cafes"
"It was the late 1950's and Switzerland was affordable for students like me. The ski slopes were close and most of the rest of Europe was less than a day’s drive away.
"But sooner or later reality sets in. Fifty years ago we married in New York and came to California; driving cross-country in a 1957 Bristol sedan my father had picked up on one of his many trips. The car had right-hand drive, so it was a real challenge maneuvering on the two-lane roads (yeah, they were paved; it was the middle of the 20th, not the 19th, century.) Still, it was an adventure when we had car trouble on a couple of occasions.
"Patty is an avid gardener and an excellent watercolorist. The two interests coincide in her botanical paintings. Here is an example of her painting of a flower from our garden:
"We spend our vacations at a small and very primitive cabin in the Sierra backcountry. Summers only; the roads aren't plowed in the winter. Nice country in summer, though. Pines, firs, granite outcrops, streams, meadows. Also coyotes, bears and deer. We don't bother them, they don't bother us. A bear did chew on my neighbor's cabin. Probably liked the taste of the wood stain.
"Thanks for your friendship over all these years. After having been in the leasing business for almost 48 years, I really appreciate all the wonderful people I have met, and the lasting friendships I have formed. I still enjoy the business immensely. There is always something new around the corner."
Bob started in automotive leasing in 1963 in sales, then moved into equipment leasing in the late 1960's. For over 20 years he provided funding for leasing companies as an officer of both bank and non-bank lenders. Along the way, he started several successful leasing companies. His company, Teichman Financial Training, located in Sausalito, California, was founded in 1998 and provides lease education and consulting services to lessors, funders, brokers, government and international agencies, and other members of the financial community.
He is active in leasing associations, having served on the Board of Directors of the United Association of Equipment Leasing (UAEL) for four years. For three years he was the Chairman of their Education Committee with responsibility for the Certification Program and Educational Programs. He was also a member of other committees including the Standards Committee.
Bob is a frequent speaker at leasing industry events, and has written articles for UAEL's Newsline and other industry publications. He is a co-author of the Certified Leasing Professional's Handbook.
He served two years as President of the Certified Leasing Professional Foundation Board, and served as Chairman of the Education Committee. He is also a member of the National Association of Equipment Leasing Brokers and the National Equipment Finance Association.
Taos, New Mexico -- Adopt-a-Dog
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Changes that are coming
Dallas fans endorse Jerry Jones as Cowboys owner
NFL Players Association Creates New Ad Campaign to Spread Awareness of Potential Lockout
Cell Phones, State Cars, Now Juvenile Offenders
Squaw Valley's new CEO is talking about a snow train
"Death by GPS" in desert
Jess Jackson and Barbara Banke Announce Multi- Million Dollar Gift to Build the Jess S. Jackson Sustainable Winery Building at UC Davis
Napa winery defaults on $3.3 million loan
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This Day in American History
1734- Birthday of Robert Morris, Signer of the Declaration of Independence, the Articles of Confederation and the Constitution. He was only one of two men who signed all three documents. He was the country’s first “Superintendent of Finance. The Robert Morris Association, formed by the Bankers Association, honors him. He was born at Liverpool, England, and died May 7, 1806, at Philadelphia, PA.
Superbowl Champions This Date
1988 Washington Redskins ( Washington 42, Denver 10 )
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