For just $29 MM, Own Michael Jordan’s Chicago estate
######## 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.
Free Posting for those seeking employment in Leasing:
All “free” categories “job wanted” ads:http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm
It will take a bulldog to get out of this mess!
When Tennessee Commerce Bank, Franklin, Tennessee closed on January 27, 2012 and deposits as well as offices assumed by Republic Bank & Trust Company, Louisville, Kentucky, Tennessee Commerce Bank were seriously overextended, primarily in commercial and industrial loans. The nonconforming loans caused their demise, with charge offs going from $21 million in 2009 to $16.6 million in 2010 and the first nine months of 2011 to $78 million in commercial and industrial loans. It was the end of the bank and the officers who were drawing excellent salaries and bonuses.
There were other problems, but basically they had overextended their geographic boundaries and evidently were involved in loans they should not have even considered. One of them obviously was financing repossessed trucks and other such equipment, working on the charge offs and putting on more loans to pay off the bad loans.(1)
“Eric Raines, a senior ombudsman specialist with the Federal Deposit Insurance Corp., cited the bank’s loan portfolio — full of equipment loans and leases and other types of specialized lending — as the reason for the closure. He said the FDIC’s entire presence, from accountants to investigators, was standard procedure.
“'They ventured into a specialty area of lending ... and that was the source of many of the bank’s problems, “he said. (1)
In the broker and lessor communities, the Tennessee Commerce Bank had a reputation for being "loosey-goosey" and servicing transactions that could not be placed elsewhere. Brokers also worked with sub-brokers, Leasing News was told.
One of the insiders told Leasing News it was a common practice with various of the leasing companies for the bank to sell a non-performing asset to the leasing company using their bank recourse line of credit, then for the leasing company to sell or lease the transaction using a non-recourse loan from the bank to pay off the original recourse line. This was encouraged by the bank, Leasing News was told, on various occasions with several of the lessors.
Two of the major accounts were American Bank Leasing Corp. founded by Jim Doster in 2001, and BullDog Truck & Equipment Sales, Cumming, Georgia. They specialized in repossessed trucks, had a dealership with a large yard, had four in-house salesmen selling them and leasing them, and leasing brokers were welcome. Most of the sales were for cash, Leasing News was told. The games played by other lessors do not appear to include Bulldog, as the company has an excellent reputation in the leasing industry for being fair and above board, according to many sources.
Doster hired Jeff Schubert in July, 2002, who helped the repossession and remarketing company grow, moving into a top management position.
Then in August 26, 2011 Doster sold his share to Jeff Schubert, who took over as president/CEO. (3)
Earlier this month Schubert told Leasing News he was just winding down the portfolio and was acting as a "broker" for new transactions. The bank was not taking more business. He also said his company was no longer taking leads from broker and sub-broker business.
It now appears there is more to the story.
Steve Trager, Chairman and CEO, Republic Bank, told Leasing News they had only purchase a small part of the liabilities, including loans, and that the FDIC had taken perhaps over $800 million to bid on the open market. A UCC search shows liens on used trucks and equipment (4)
It appears they included Bull Dog Equipment and Sales as well as American Bank Leasing, thier loans and leases, and as important, thier exclusivity in deposing of repossessed trucks and other equipment.
Tennessee Commerce Bank was a major client for the company, this was well established, owning their own buildings as well as their large truck yard. They also handled repossessions form other banks and finance companies.
Doster told Leasing News he saw the problems at Tennessee Commerce Bank coming over a year ago.
“We had aggressively worked on diversifying our client base over the last year so TCB’s failure does affect us short term but will actually be a positive long term development for Bulldog, “ Jim Doster told Leasing News.
In the most similar incident, July 30, 2010 LibertyBank, Eugene, Oregon was closed with Home Federal Bank, Nampa, Idaho assuming the deposits, as well as $419.7 million of the failed bank's assets, with the bank and FDIC sharing a loss-share of $300 million of the assets. Part of the debt came from Commercial Equipment Lease, Eugene, Oregon, who also specialized in used and repossessed trucks and equipment.
In a telephone interview at the time, Len E. Williams, President/CEO, Home Federal Bank told leasing news he was aware of the leasing entity in business for 35 years, like the management, and said he thought the bank would be keeping the operation. Shortly after the interview, the leasing company staff was cut and letters sent out to brokers:
""We and their other brokers got a letter from them when it happened saying they were ceasing operations and not funding anymore & I know almost all the employees are gone and a couple of employees that are left are gone at the end of October."
Brokers tell me the Commercial Equipment Lease was a clean operation, tight with credit, and a good outfit to work with.
The used truck and equipment industry is certainly a tough market place and history shows difficult to remain.
Perhaps Jim Doster will succeed as the economy appears to be making a comeback. He may even have some surprises to announce.
If you can be of any assistance to Jim, please email him at: email@example.com
(1) Tennessee Commerce Bank Closing
(2) Banks Problem quote:
(3) American Bank Leasing Announcement
(4) Tennessee Commerce Bank UCC’s
The List---January and February, 2012
--- Mergers, Acquisitions & Changes
Key Equipment Finance/American Express/Sierra Cities/Rockford (01/12) Key Products Grow except Leasing
U.S. Bank Manifest Funding Services, Marshall, Minn. (01/12) U.S. Bancorp Loan Products Up, but Not Lease Financing; http://leasingnews.org/archives/Jan2012/1_19.htm#bancorp
HL Leasing, Fresno, CA (01/12) Kathleen Otto Found Liable for $114.5 Million Ponzi Scheme
Puget Sound Leasing/First Sound Bank, Bellevue/Seattle, WA (01/12) Court case settled; both bank and leasing company survive
under new chairman who has excellent reputation.
Marquette Equipment Finance, Midvale, Utah (01/12) Acquired by PacWest Bancorp, to change name to Pacific Western Leasing. The New bank gives a lot of abilities to expand in the marketplace.
Westover Financial/Santa Ana/Westover Capital, Tustin, CA (02/12) Accused of Multiple Grand Thefts, over $1 million and FBI may be interested as well as local district attorney.
U.S. Energy Capital, Greensboro, GA (02/12) Jim Borland reacquires company, back to work at age 70.
Balboa Capital, Irvine, CA (02/12) Mass Fax Class Action Case; company can’t seem to stay out of trouble.
LEAF Financial, Philadelphia, PA (02/12) Employee tells all
Mount Pleasant Capital Corp. Warrendale, PA (02/12) Launches Major Franchise Lending Program; look out competition!
Leasing Up at Bigger Banks, but not Smaller
According to the year-end FDIC State Banking Performance Summary of FDIC-insured institutions, total loans and leases are up at Commercial Banks, National, except for banks with assets under $100 million. Note numbers are not up to 2008 levels, and while institutions are down 550 from 2009, numbers have improved, and are close to 2008 where the number of institutions was 797 less.
Noncurrent loans & Leases are down:
(note these are percentages to total loans and leases)
FDIC Quarterly Report Profits Up, But Fewer Banks
The FDIC Quarterly Bank Profile reported. "FDIC-insured institutions reported an aggregate profit of $26.3 billion in the fourth quarter of 2011, a $4.9 billion improvement from the $21.4 billion in net income the industry reported in the fourth quarter of 2010. This is the 10th consecutive quarter that earnings have registered a year-over-year increase. As has been the case in each of the past nine quarters, lower provisions for loan losses were responsible for most of the year-over-year improvement in earnings."
(click to make larger)
The number of banking offices grew in 16 states and declined in 30 states over the past year. The number of offices was unchanged in four states and the District of Columbia. Several states that experienced office contraction from 2010 to 2011 experienced office expansion over the past five years. For example, Texas, South Carolina, Colorado, Arizona, and Wyoming experienced more than a 1 percent decline in the number of offices between 2010 and 2011, but have each experienced more than a 1 percent increase in the number of offices over the past five years. No state experiencing office growth in 2011 experienced office contraction over the past five years.
The number of U.S. banks of all sizes peaked at 31,000 in 1921, staying around 14,000 for the decades, and began falling again, in the late 1980s. Today, the number of banks is one-fourth of the 1921, although the population has greatly grown since then.
The number of banks declined from 18,000 in 1984 to 7,377 at year end 2011. By end of 2020 there will only be 4,490. This is more significant when considering the United States population in 1920 was 105 million compared to 308.7 million in 2010, according to Wikipedia.
Before jumping to any conclusions, the number of offices, including retail operations in supermarkets and other chains, is now at 86,708 compared to the 1920’s mainly one bank office operation.
Yes, there are less “independent banks,” but there are many more office locations, not even counting the internet.
The consolidation of credit unions is even more dramatic — virtually a straight line for the past 27 years. There were 15,193 in 1984 but only 7,036 at the end of 2011. This number will drop to 3,500 in 2020.
While this may appear "alarming, the "mega" trend has also applied to bike stores, book stores, clothing stores, coffee shops, as well as many other businesses as the franchise business has replaced many "mom and pop" operations and even regional small businesses as well as the growth of companies such as Costco and Wal-Mart, to name just a few. Add this to the internet, and the "brick and mortar" retail marketplace, including banks who now are in major grocery outlets and others, not only is banking changing but all business, too, including leasing.
As we step into the stream of water, we think we are in the same spot, but we are not. Heraclitus of Ephesus said this around 500 BC, ““No man ever steps in the same river twice." He didn’t even have an iPhone.
Full FDIC Report here:
FDIC Beige Report---Generally Positive
"Reports on banking conditions were generally positive across Districts. Lending increased to varying degree in the New York, Philadelphia, Richmond, Chicago, Dallas, and San Francisco Districts. Lending was little changed in St. Louis and Kansas City, while loan demand was described as weak in Richmond and soft at regional banks in Atlanta. Demand for business credit was flat to slightly higher in Cleveland and increased slightly in Richmond, San Francisco, and at some large banks in Atlanta. Dallas reported strength in middle-market and large corporate lending, and Chicago noted that business loan growth continued at a moderate pace.
Overall lending standards remained restrictive in San Francisco and Richmond and were largely unchanged in St. Louis and Kansas City. Lending standards tightened further for commercial borrowers in New York. Credit conditions in Chicago improved slightly, while quality improved in Philadelphia and Kansas City. Delinquencies were steady or declined in Cleveland. Mortgage delinquencies were steady in the New York District but delinquencies decreased in other loan categories.
NACM Economic Report Hits 10 Month High
"The sense is that most of the companies that were in financial distress a year ago have fallen into two broad categories, They either succumbed to the pressures of the recession and went out of business (as suggested by the increased rate of bankruptcies this past year) or they pulled themselves together and have started to make progress."
"There has been very little real shift in the numbers since this time last year, but the good news is that four of the six unfavorable factors are now over 50 and that is an improvement over last month when there were only three indicators trending in expansion territory" said Chris Kuehl, PhD, economist for the National Association of Credit Management (NACM).
Full February Report:
(Leasing News provides this ad as a trade for investigations
January 2011 Leasing New Business Up compared to 2010
(Chart: Leasing News)
In Leasing News’ “News Briefs” on Monday* had the good news about good New Leasing Business in January, according to the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25). Here are the charts to the story:
“January’s increase in new business volume returned to a more typical growth pattern following a very busy end-of-year for many leasing and finance companies, “ELFA President and CEO William G. Sutton, CAE, said.
"The continued strengthening in financing volume and trend toward healthier portfolios provide clear evidence that the equipment finance marketplace is in the midst of regaining some of the momentum lost during the Great Recession.”
ELFA MLFI-25 ChartsTotal Number of Employees
(Year Over Year Comparison)
click image to make larger
ELFA MLFI-25 Participants
* ELFA Reports $5.1 billion new business in January
Why I Became a CLP
I'd heard much about the CLP exam, so I took it serious and studied extensively. And I'm sure glad I did, because it was one of the most challenging exams I'd ever taken. It covered every aspect of the leasing business, including how to sell a lease, pricing a lease, credit, documentation, funding, accounting, and taxation just to name some of the topics covered.
I was very proud to pass on my first attempt, and ecstatic I wouldn't have to study for it again!
I’ve experienced a number of benefits from becoming a CLP. First and foremost, it gave me the confidence to start my own leasing company, Genesis Capital Leasing. In order to pass the CLP exam, I was required to understand every facet of the leasing business. My background was in credit and operations, but through the CLP study guide I rounded out my skills in other areas such as pricing & structuring deals, accounting and tax rules, and many other areas that proved invaluable as the owner of a small leasing company.
Equally important, the CLP Foundation has provided a network of colleagues within the leasing industry. I rely on these contacts when making major business decisions, for referrals on funding sources, and for references related to service providers. I’ve found the CLP designation to be particularly important when pursuing new funding sources. I’ve been told by a number of funding sources there’s a credibility the designation brings that gives you a leg up. The reality these days is that you need every advantage when building your funding programs.
Additionally, many of my CLP colleagues have become personal friends and provide an invaluable support system, especially in challenging times like the most recent recession we experienced. As the economy improves and we begin to rebuild our team here at Genesis Capital, the CLP program is something I will continue to highlight and promote with my employees.
Finally, the CLP designation provides an important level of credibility. Within the leasing industry, we’ve seen a number of incidents that do not portray a positive image for our industry. I believe joining and supporting the CLP foundation is a significant way to stand for all that’s good about the leasing industry.
Previous Why I Became a CLP:
Searching for New CLP Foundation Executive Director
Looking for a candidate with a balanced background to include non-profit association management; marketing and sales skills a plus as well as knowledge of finance and leasing.
The Executive Director is a part-time position, working from your own office or home. The basic operational duties include managing the CLP databases, maintaining accurate records, proctoring exams, coordinating updates and changes to website with Web Master and working on special projects as directed by the Board.
The Executive Director acts as a spokesperson in promoting the CLP program, primarily helping to organize volunteer efforts with the CLP Board and Committees. Association conference travel two to three times per year is required.
The Certified Lease Professional (CLP) designation is the preeminent credential for equipment leasing and financing professionals throughout the world. The title that appears after their name in correspondence, business cards, and in the press, shows the individual has demonstrated competency through testing of knowledge, continuing education and a commitment to their business practices and dedication to the industry.
Send resume to Cynthia "Cindy" Spurdle: firstname.lastname@example.org or telephone: 610.687.0213
Breed: Labrador Retriever
"I am already neutered, housetrained, purebred, and up to date with shots."
Diego Y's Story...
Rescue Group: Labrador Friends of the South, Inc.
UPDATE: Diego has passed the first test to become a working dog. He will have the full test in two weeks so we will know then if he will be available for adoption or if he will be working to keep our airport safe.
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Raucous laughter ("Wanderlust") and delicate animation ("The Secret World of Arrietty") await theatergoers this week, while two of last year's most acclaimed hits ("Hugo," "The Skin I Live In") and a vintage family favorite ("Parenthood") come to DVDs.
Wanderlust (Universal): Director David Wain ("Role Models") mines comic gold once more with underrated everyman Paul Rudd in this frequently hilarious satire of social aspirations. Rudd plays George, a New York schlub who decides to ditch the big city when he and his wife Linda (Jennifer Aniston) both lose their jobs. Looking for a new start, the couple go on a road trip and finally settle on a small Atlanta commune. At first, the laidback, hippie-style generosity of the place seems idyllic after their urban troubles, but trouble starts to brew as George and Linda get to know more about such residents as long-haired messiah-wannabe Seth (Justin Theroux) and Counterculture vet Carvin (Alan Alda). Mixing bursts of uproarious rudeness with moments of humanistic gentleness, the movie draws an inspired portrayal of the tensions between country and city life.
The Secret World of Arrietty (Walt Disney): Delicately crafted and emotionally sophisticated, this adaptation of Mary Norton's beloved children's book "The Borrowers" is another captivating animated gem from Japan's Ghibli Studios. The fanciful plot focuses on married couple Pod and Homily (voiced by Will Arnett and Amy Poehler) and their teenage daughter Arrietty (Bridgit Mendler), a family of thumb-sized people who live under the boards of a British home. Their peaceful existence is shaken, however, when Arrietty is discovered by Shawn (David Henrie), the sickly boy who comes to live in the house. Though perhaps not on the level of Ghibli classics like "My Neighbor Totoro" and "Spirited Away," there is enough magic in this fairy-tale to enchant even the most seasoned animation specialists.
Hugo (Paramount): Martin Scorsese, the man behind such hard-hitting movies as "Taxi Driver" and "Goodfellas," would seem like an unlikely choice to direct a children's picture. And yet, this lovely adaptation of Brian Selznick's book is not only one of last year's most enchanting films, but also Scorsese's most affecting movie in years. Set in 1930s Paris, it tells the story of Hugo Cabret (Asa Butterfield), a 12-year-old boy who, after the death of his father, finds refuge behind the walls of the train station. While trying to sort through his family inventions, he befriends a mischievous girl (Chloe Grace Moretz), keeps one step ahead of a bumbling inspector (Sasha Baron Cohen), and meets film pioneer Georges Melies (Ben Kingsley). A valentine to movies, this is a heartfelt fantasy enchants from beginning to end.
The Skin I Live In (Sony): Oscar-winning Spanish director Pedro Almodovar serves up a dark and unpredictable tale with this stylish combination of operatic horror and high camp melodrama. After years since their previous collaboration, the filmmaker reunites with his longtime leading man Antonio Banderas, who stars Dr. Robert Ledgard. A world-famous plastic surgeon, Ledgard is working on what is to be his ultimate project, the creation of a new brand of skin inspired by his late wife. Aided by his faithful companion Marilia (Marisa Paredes), he experiments on a young woman (Elena Anaya) who harbors a deep secret and may not really be all she seems. To say more would be to give away the twists that make Almodovar’s movie such a rich and perversely lyrical experience. With subtitles.
Parenthood (Universal): The trials and tribulations of family life are painted with laughs and tears in this 1989 comedy-drama from Oscar-winning director Ron Howard ("Apollo 13," "A Beautiful Mind"), released in a new special edition DVD. Centering on the Buckman family, it weaves several subplots into a rich tapestry of fathers, mothers, sons, daughters, and everybody in between. Among them are Gil (Steve Martin) and Helen (Dianne Wiest), who are struggling with their troubled sons, Susan (Harley Jane Kozak) and Nathan (Rick Moranis), who differ on how to raise their kids, and grandfather Frank (Jason Robards), who has to deal with "black sheep" son Larry (Tom Hulce). With the help of a remarkable ensemble cast that also includes Mary Steenburgen and Keanu Reeves, Howard offers a heartening view of the joys and pangs of being a parent.
Bernanke notes economy better than expected
ECB pumps a fresh $700 billion into euro banks
Air Cargo A Lessor's Market?
You May Have Missed---
For just $29 MM, Own Michael Jordan’s Chicago estate
SparkPeople--Live Healthier and Longer
The Story of Art Tatum
Winter: A Dirge
by Robert Burns
THE WINTRY west extends his blast,
“The sweeping blast, the sky o’ercast,”
Thou Power Supreme, whose mighty scheme
“Gimme that Wine”
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in History
1440- Martin Alonzo Pinzon (1440-1493), Spanish shipbuilder and navigator (and co-owner of the Nina and the Pinta), accompanied Christopher Columbus on his first voyage, as commander of the Pinta. Storms separated the ships on their return voyage, and the Pinta first touched land at Bayona, Spain this day in 1493, where Pinzon gave Europe its first news of the discovery of the New World (before Columbus's landing at Palos).
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
How to play:
Refresh for current date:
See USA map, click to specific area, no commercials
Real Time Traffic Information
You can save up to 20 different routes and check them out with one click,
Independent, unbiased and fair news about the Leasing Industry.