Northern Leasing Brings up $2 Million Bond re:
Ascentium New York Court of Appeals Case

By Tom McCurnin
Leasing News Legal News Editor

(Leasing News received a telephone call from Northern Leasing Systems Corporate office, the large P.O.S. lessor, complaining about Mr. McCurnin’s original column, then Mr. McCurnin received a call from Northern’s attorney, who wanted the story “set straight.” Ascentium Capital was asked for a comment, but did not want to make any, until “after the case was closed.”

(The case involved two leasing pools, as well as the reporting on leases that were being paid on time. As Mr. McCurnin wrote in the original article, “Northern Leasing failed to pay the shortfall from the pools, failed to repurchase the pools, and also failed to provide servicer reports. On November 21, 2013, judgment was entered against Northern Leasing for $1.7 million dollars. Ascentium moved the Court for an injunction preventing Northern from diverting funds from another pool which Ascentium claimed cross-collateralized the two pool agreements at issue.”

(At this time, there also is a case in the Supreme Court of the State of New York underway, basically a class action suit continuing since June 30, 2009 versus Northern Leasing Systems, Inc., Jay Cohen, Steve Bernardone, Rich Hahn, and Sara Krieger, which Leasing News is following (1). Ironically one of the legal expert witnesses for the plaintiff is Randy Brooks, retired FTC Lawyer, 2007 Leasing Person of the Year. (2) (Editor)

Northern Leasing Defaulted on Its Securitization Pool Agreement and
Judgment Was Entered Against It. However, Northern Leasing Posted
a $2 Million Dollar Bond, So In Theory, Enforcement Procedures Should
Be Stayed on One Pool. The Case Continues.

Ascentium v Northern Leasing Court of Appeals No. 650481/20012

Monday, May 12, 2014: Leasing News reported the odd story of Northern Leasing Systems, Inc., New York City, which securitized a number of leasing pools with Ascentium Capital, Kingwood, Texas.(3) The leasing revenue did not meet projections, and there existed a shortfall. Ascentium claimed that Northern didn’t pay the shortfall, and Northern apparently claimed that it didn’t have to pay it. Ascentium sued. Northern still refused to pay. Ascentium took the matter to Summary Judgment. A Judgment was entered against Northern Leasing. Northern Leasing still refused to pay, and appealed the Judgment to the New York Court of Appeals, filing a $2 million dollar appeal bond in the process. The service agreement between the parties, part of the basis for the complaint, was also in contention.

Ascentium turned up the heat, and claimed that the particular lease pool was cross-collateralized. Ascentium was entitled to the monies which were being diverted from that pool. In addition, Ascentium claimed that Northern Leasing was not providing servicer reports. A New York Judge ruled against Northern Leasing, issuing a Preliminary Injunction requiring Northern Leasing to pay the diverted funds---and to further provide servicing reports.

The point of the article was two-fold. First, I questioned why the borrower, Northern was appointed servicer. Typically, I like see a neutral party, like US Bank, appointed servicer for the pool, with the borrower appointed sub-servicer. This way, the whole injunction thing could have been avoided. Second, I questioned the appropriateness of a borrower biting the hand that feeds it. Pool money is still tight, and to require a funder to sue to get its money is simply not going to enhance the reputation of any leasing company.

Late last week, the New York Court of Appeals entered the fray, staying (freezing) the injunction the trial court previously issued, which required Northern to pay diverted funds and to account for the receipts of the lease pool. The reason, although unstated by the Court of Appeals, certainly has to do with the filing of the appellate bond.

In most states, the filing of an appellate bond stays, or freezes, all collection activity on the judgment. So, at least on that score, the trial judge may have overstepped his authority in granting that injunction, hence the interim correction by the New York Court of Appeals. There also may be items about the second pool or other pools, although not covered in the Summary. (4)

In reading the papers, the other question I had, relative to the injunction, was the appropriateness of it from the start. Typically, injunctions are rare, often disfavored extreme remedies where money damages are insufficient to compensate the plaintiff. But in this case, Northern posted a $2 million dollar bond, so there is an assured pot of gold at the end of the rainbow. So why did Ascentium file for the injunction in the first place?

None of the players or their lawyers would comment, but the tone of the Court’s decision reflects an angry judge. Northern must have done something to tick off that trial judge. In addition, the fact that Northern is giving Ascentium the “middle finger salute” on the Pooling Agreement obligation certainly angered Ascentium, which might explain why Ascentium sought the injunction.

Lingering questions remain about this case:

First, and I want to emphasize this: never, ever, have the borrower be its own servicer. The lender should appoint a servicer, and have the borrower be a sub-servicer. Better yet, have the Lease Pool placed into a Bankruptcy Remote Entity, so that the borrower loses control over the Pool in the event of a default.

Second, the trial judge may have made a mistake on the injunction, perhaps goaded by parties or their counsel. The tone of the decision reflects a judge who is noticeably angry at Northern Leasing. This was not explained, but was quite evident by his tone and judgment.

Third, why bite the hand that feeds you? Securitization money is tight now, although it has loosened up considerably from 2008. So why would Northern enter into a series of securitization pools, default, and force the lender to sue, and now fight it out in the very public arena of the appellate courts? I just don’t understand why a leasing company would want to play out this game in an open court for all other lenders to know about. It’s a small world.

1. New York Class Action Case
   http://www.leasingnews.org/PDF/Firstfiling52014.pdf
2. Leasing Person of the Year for 2007 Randall H. Brook
   http://www.leasingnews.org/archives/January%202008/01-07-08.htm#lpy
3. Northern Leasing Found to Have Diverted Proceeds from Lease Servicing Pool By Tom McCurnin
   http://leasingnews.org/archives/May2014/5_12.htm#northern
4. Summary Statementhttp://www.leasingnews.org/PDF/AscentiumCapitalOrder52014.pdf

Tom McCurnin is a partner at Barton, Klugman & Oetting in Los Angeles, California.

Tom McCurnin
Barton, Klugman & Oetting
350 South Grand Ave.
Suite 2200
Los Angeles, CA 90071
Direct Phone: (213) 617-6129
Cell (213) 268-8291
Email: tmccurnin@bkolaw.com
Visit our web site at www.bkolaw.com

Previous Tom McCurnin Articles:
http://www.leasingnews.org/Conscious-Top%20Stories/leasing_cases.html

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Classified Ads---Credit

(These ads are “free” to those seeking employment or looking
to improve their position)

Free Posting for those seeking employment in Leasing:
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####Press Release ###############################

Element Tops $1 billion in Q1 Originations
to Deliver $0.10 Adjusted Operating EPS

 Strategic acquisitions and strong US demand deliver more than $2 billion of new business in the last two quarters
 Free operating cash flow increased to $0.14 per share from $0.12 per share in the previous period
 Aviation pipeline rebuilds to $2.4 billion from $1.5 billion at the end of 2013
 Adjusted OPEX continues to decline to 2.22% from 2.26% in Q4

TORONTO, Ontario, - Element Financial Corporation (TSX:EFN) (“Element” or the “Company”), one of North America’s leading equipment finance companies, reported financial results for the three-month period ending March 31, 2014 with record originations of $1.1 billion contributing to a 27 percent increase in the Company’s total earning assets to $3.8 billion as at March 31, 2014 versus $3.0 billion as at December 31, 2013. After tax adjusted operating income increased by 37 percent to $20.7 million in the three-month period ending March 31, 2014 versus $15.0 million in the preceding period producing $0.10 of after tax adjusted operating earnings per share for the period in line with the consensus of analysts’ estimates.

For more information, please see attached or visit us at www.elementfinancial.ca.

##### Press Release ############################

Bookmark us

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Updates

Funders List “A”
Funders Looking for Broker Business
Store Credits

“Financial Pacific Leasing is a subsidiary of Umpqua Bank.  FinPac has been in business since 1975, and supports a nationwide network of Third Party Originators. Our small ticket group funds transactions ($5,000 - $100,000) "A" to "C" credits.  Our commercial group funds transactions ($100,000 - $500,000) for “A” credits.   We are a strong and stable company committed to the Third Party channel. A relationship with Financial Pacific can enhance your vendor/origination relationships by broadening your credit window. To Qualify - Please Call or see "Prospective Third Party Originators" section on www.finpac.com.”

A -Accepts Broker Business | B -Requires Broker be Licensed | C -Sub-Broker Program | D -"Private label Program" | E - Also "in house" salesmen

Funder List "A"
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http://www.leasingnews.org/Funders_Only/New_Broker.htm

Story Credit Lessor
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Leasing Industry Help Wanted

We are looking to grow our sales team! Sales Managers and Sr. Account Executives CalFirst is seeking seasoned sales professionals to join our sales team in Irvine, CA. Our sales professionals are responsible for originating equipment leasing and secured loan opportunities with middle to large size companies located nationwide. Transactions range from $1,000,000 to $30,000,000. For more information, please contact recruiting at: (949) 255-0500 ext. 392 Email: bcrogan@calfirst.com www.calfirst.com

National Sales Representatives Experienced, with existing business to bring, all industries. Salary plus commission, good benefit package. AXIS - A, B, C lender for small and mid-ticket markets. Call Jean Harlow– 800.994.0016 email or forward resumes to: HR@Axiscapitalinc.com axiscapitalinc.com    Growing with fast approvals and quick fundings

For information on placing a help wanted ad, please click here:
http://www.leasingnews.org/Classified/Hwanted/Hwanted-post.htm

Please see our Job Wanted section for possible new employees. 

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NAELB Leasing School Joins
Leasing Schools/Franchisors List

Global Financial Training Program
Over 35 Years of Experience Financing Businesses

Program Cost: $19,950.00

Phil Dushey
President & CEO

In 2001, Global Leasing founder Phil Dushey created a new company to train independent entrepreneurs who want to enter the lucrative field of business financing. Global Financial Training Program teaches all aspects of finance including Equipment Leasing, Accounts Receivable Financing, Cash Advance, Commercial Real Estate, SBA Loans and much more. Phil’s students have found great success with his program.

Mr. Dushey is a founding member of the National Association of Equipment Leasing Brokers. He has been a member and speaker at many leasing organizations for several years. He is also a founding member of the leasing news advisory board.

Global Financial Training Program provides students with everything they need to start making money immediately after four days of training. As a full-service finance company you will provide a valuable service for business owners that have difficulty getting financing from their local banks. The banks are turning down over 90% of business loan applications and you can approve at least 50% of the turndowns. After the training at their offices in New York City trainees are instantly approved with over 25 lenders, get a custom designed website, stationery package, 1000 leads and enough marketing to have their phones ringing the first week after the training and much more... It's easier than you think to fulfill your dreams of independence, living the life you deserve and enjoying the prestige of owning your own company.

You don't need prior experience. All you need is the desire to be your own boss, the ability to learn, good people skills, and a passion to succeed and make a lot of money.

How much, is up to you...

Philip Dushey
President & CEO
Global Financial Services
1 State Street, 21st Floor
New York NY 10004
Email phil@gbtsinc.com
www.globalfinancialtrainingprogram.com 
Phone: 212-480-4900

The Global Group of independently owned companies are:

Global Financial Services | www.globaleasing.com
We have been actively providing financial services for 35 years

Global Church Financing | www.globalchurchfinancing.com
One of the largest independent companies financing equipment for churches nationwide

Global Financial Training Program | www.globalfinancialtrainingprogram.com
The oldest and most comprehensive training program for people who want to own their own finance company

Mr. Dushay is also on the Leasing News Advisory Board 
http://www.leasingnews.org/Advisory%20Board/Dushay_Phil.htm

Moving America Forward is a business television show hosted by William Shatner, anchored by Doug Llewellyn. On this episode we talk to Phil Dushey about his business opportunity and Global.

----------------------------------------------------------------------------------------------------------

Lease One, Lynnfield, Massachusetts

Program Cost: $19,900.00

Since 1989 Lease One has been providing superior training along with unprecedented ongoing support to our broker network. With offices from coast to coast we proudly exhibit the foremost training experience available. Our one time initial investment will provide you with the training and support for the lifetime of your venture with no on-going fees (Hotel/Airfare/Materials/Leads are all included in this price).

“The Lease One Opportunity is the only turn key business opportunity that allows you to devote the time necessary to building a business, no need to worry about processing or underwriting your deals; we do it for you, forever! Our unique program is the only one that offers free marketing assistance along with a devoted graphics design department to enable you to creatively attract new customers to your business. Call us today or visit our website (www.leaseoneopportunity.com ) to learn more about this exciting opportunity. We are Lease One; It's the Lease we can do!”

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Lynnfield , MA 01940
www.leaseoneopportunity.com

----------------------------------------------------------------

NAELB Leasing School

Program Cost: $16,950

(Faculty and Staff include Charles “Bud” Callahan, CLP, School
Director, with Linda Kester, Marketing Director, 
and Joseph G. Boannano, Esq., CLP, attorney)
http://www.naelbschool.com/bio/

NAELB Leasing School teaches entrepreneurs how to own, operate
and succeed in their own equipment leasing and finance brokerage business.

The National Association of Equipment Leasing Brokers is the only major leasing association to offer an equipment leasing program to become a leasing broker.

The National Association of Equipment Leasing Brokers offers the most comprehensive specialty financial educational symposium in the industry, providing:

• A week long intensive hands-on learning experience with after-hours discussions of real-world leasing situations and valuable course materials including handbooks, industry software and more

• Real-world training by experts in the field (our instructors have been active in the industry for at least 25 years each)

• Training week concludes with FREE admission to the following NAELB Conference, offering the perfect opportunity to expand your networking with lenders, industry service providers and fellow brokers who are eager to provide support as you develop your business

• One full year of mentoring from experienced NAELB brokers who help you navigate the pitfalls and point you toward business solutions

• One full year of membership in the NAELB, the nation’s largest leasing broker association formed by brokers for brokers, and use of all member benefit programs

• Graduates are able to deal directly with multiple quality funding sources -­‐ no obligation to split fees with the school or school mentors

Our price is $16,950 (but call 855-­‐411-­‐ELBS to find out if you qualify for one of our available discounts). Hotel, airfare allowance, meals, NAELB membership, COURSE MATERIALS, INDUSTRY TOOL KITS, and mentorship, are all included at this price.

For more information, please visit www.NAELBSchool.com or call 855-­‐411-­‐Equipment Leasing Broker School (3527)

Sales Make it Happen
by Scott Wheeler

With over thirty plus years of leasing experience and an Executive Masters in Business Administration, Scott is an accomplished senior leasing executive with leadership qualities in marketing and operations. His extensive experience will benefit organizations looking to reach a higher level of profitability and corporate development.

Building an Effective Sales Team

The commercial equipment leasing and finance industry is steadily improving. Portfolios are performing historically well with delinquencies at an all-time low, and sales volumes are increasing for individual originators and organizations that are well positioned in the market. Every organization, no matter the size, is working to build a marketing engine that can sufficiently produce more assets at the lowest possible cost. Organizations cannot afford to have 20% of their sales force producing 80% of the volume. Lessors, banks and finance companies must have a greater percentage of their staff producing at the highest levels. Therefore, the commercial equipment leasing/finance industry is faced with a growing demand for top producing originators. Organizations with strong marketing teams will consistently outperform the competition; and will create the greatest market value.

Organizations throughout the industry are expanding their direct sales forces to gain market penetration, increasing their indirect channel partners to grow assets, pursuing portfolio and organizational acquisitions, and are taking an “all of the above” approach in order to increase quality equipment portfolios. All of these assets are ultimately produced by the individual originator in the field, doing what he or she does best – building relationships with the “right” vendors and end-users.

Owners, managers, and team leaders are looking to hire and retain strong originators who can quickly generate more assets. The search is not always easy and having the wrong staff members can be devastating in respect to financial cost and the misallocation of internal resources.

Building a cohesive marketing team requires tenacity, leadership, and determination on the part of management. Non-producers have always been a liability. Today, even average producers can become a drain on an organization. Access to capital is not today’s challenge; the primary challenge for financing and leasing organizations is human capital – having an effective marketing team that can consistently originate the types of assets being sought after by banks, parent companies, investors and funding partners. Top producing originators are a hot commodity.

Experience matters. Industry knowledge and efficiency are required, but consistent results are paramount. Originators with extensive experience and expertise have been able to translate their past success into the new economy; they have embraced new technologies and marketing efficiencies and are outperforming their competition by looking forward, rather than constantly seeking to emulate the past.

Sales managers, owners and team leaders are carefully dissecting their existing sales staff to determine the characteristics that encourage success. They are recruiting, training and coaching their staffs based upon proven selling characteristics and current capabilities. Most importantly, they are leading their teams toward common goals.

Aggressive sales leadership is a hands-on proposition, with the ability to think long term while being committed to participating in the daily process of working new transactions and relationships. Successful managers are the linchpin that allows sales teams to execute the company’s vision.

The strongest sales managers, owners and team leaders are able to attract and retain the talent that complements and aligns with their company’s value proposition. The markets are changing and sales leaders know that the relationships built today will ensure future stability and growth; therefore, building a world class sales team is essential for success.

Wheeler Business Consulting will be facilitating a workshop

“Building an Effective Sales Team,” for sales managers, owners and team leaders on June 4, 2014 in Baltimore Maryland –
In conjunction with the annual NEFA Crab Feast.

For more info link to: http://wheelerbusinessconsulting.com/workshopeffectivesalesteam.html

Scott A. Wheeler
Wheeler Business Consulting
1314 Marquis Ct.
Fallston, Maryland 21047
Phone: 410 877 0428
Fax: 410 877 8161
Web: www.wheelerbusinessconsulting.com

Sales Makes it Happen articles:
http://www.leasingnews.org/Legacy/index.html

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Big banks struggled to grow loans in Q1,
but reasons for optimism
By Kevin Dobbs and Robin Majumdar
SNL information

After a challenging final quarter of 2013, meaningful loan growth remained difficult for large banks to generate during the first quarter, as a brutal winter crimped economic activity and minimized demand for credit.

Lending declined during the first quarter at four of 10 major banks analyzed by SNL Financial. Among the remaining six, all grew lending less than 2% during the first three months of the year.

U.S. GDP came to a near standstill during the first quarter. The U.S. Department of Commerce, in an initial estimate, pegged growth at just 0.1%.

But as winter thawed and activity resumed in March, bankers reported during earnings season, the economy appeared to bounce back and provide reason to believe loan demand will pick up along with it.

"While economic growth during the first quarter was uneven, economic activity improved later in the quarter, including national auto sales, which reached a seven-year high in March," Wells Fargo & Co. Chairman, President and CEO John Stumpf told analysts after posting a first-quarter profit in April. Wells reported single-digit loan growth during the quarter. "Employment also increased in March for the 42nd consecutive month, one of the longest periods of sustained growth ever, and consumer confidence hit a six-year high."

Sales of new U.S. autos slowed early in 2014 amid the winter-induced crawl, but they did in fact spring back in March and then increased more than 8% in April when compared with a year earlier, according to Autodata Corp. Sales ran at an annual rate of more than 16 million in April, well ahead of actual sales of 15.6 million in 2013.

The American job market bounced back in the spring, too, with nonfarm employment in April growing by a seasonally adjusted 288,000 jobs, the largest monthly gain in more than two years, according to the U.S. Department of Labor. Officials also estimated job growth topped 200,000 in February and March, following much weaker advances in January and in December 2013.

"You do see some growth coming back," Jefferson Harralson, a bank analyst at Keefe Bruyette & Woods Inc., told SNL. "I do think the slowdown we saw was seasonal — because of the weather."

Wells' Stumpf also noted what he views as strong economic underpinnings that could help propel growth as momentum builds — notably including lower debt levels that provide Americans with plenty of room to borrow and invest.

"I'm optimistic about future economic growth, because consumers and businesses have continued to improve their financial conditions," he said. "Households have reduced their leverage to the lowest level since 2001, and the burden of their financial obligations is lower than at any time since the mid-1980s. Also, businesses are well-positioned to hire and invest with ample supplies of cash."

U.S. Bancorp Chairman, President and CEO Richard Davis also was generally upbeat during earnings season. After reporting in April a first-quarter profit, he told analysts that, while the company's overall loan growth hovered in the low single digits during the first three months of 2014, credit demand was notable across several business lines.

He cited particular strength in autos and credit cards on the consumer side, and he noted advances across a range of commercial segments, including small-business lending.

"This quarter, we had strong loan production in small businesses, up almost 30% over last year's first quarter," Davis said. "That's all types of small business, particularly for those under $250,000."

The Federal Reserve said its latest survey of senior loan officers showed that banks overall "eased their lending policies" for commercial-and-industrial and commercial real estate loans amid "stronger demand" for both types of loans in the first quarter. The Fed also said banks relaxed standards on credit card and auto loans.

Analysts said the data suggests banks are eager to grow their loan books. Evercore analysts said in a note that the survey results were "consistent" with recent commentary from bank executives who have noted increased loan demand but also "tighter spreads."

That latter part is of some concern, analysts say.

With short-term interest rates still low, and competition for loans heated, banks that are responding to more demand find themselves vying for customers amid an increasingly crowded field of lenders, analysts say. As such, even as loan books expand, interest income could continue to be difficult to propel, as banks are often competing by lowering prices, and this impacts the spread between the interest banks earn on loans and what they pay out on deposits.

Harralson said there has indeed been "greater intensity" in pricing competition over the past year. He said it likely will "take higher rates, really, to ease the competition."

Either that, or more banks "will pull away" and "say loan growth is just too expensive to get right now," he said. "I think this makes each bank step back and decide just how aggressively they want to participate."

This decision-making, he said, could play out over the course of 2014, as the Fed has indicated it is not likely to boost rates until next year.

And a Fed move in 2015 is dependent upon an increasingly strong economy this year, with ongoing improvement in the job market a key factor.

While the employment picture brightened significantly in April, the job market is not yet robust, economists say.

As Raymond James Chief Economist Scott Brown noted to SNL after the April jobs report was released, unemployment remains high and labor force participation is weak.

The jobless rate in April fell to 6.3% from 6.7% the previous month, but it was still well above the 4% to 5% level of the early 2000s. And the rate dropped last month in large part because the labor force participation rate declined from 63.2% to 62.8%, around a three-decade low.

"So that means a lot of people have given up on looking for work, and so they are not counted in the unemployment rate," Brown said. "That suggests we still have quite a ways to go. … But having said that, I do think things are on the right track now, with the weather improved, and I think we can continue to grow."

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Earnings Scorecard for Top 25 US Bank/Thrifts
SNL Financial

The top 25 publicly traded banks and thrifts reported mixed earnings growth trends in the first quarter.

Eleven of the 25 biggest public banks and thrifts in the U.S. reported that earnings per share improved in the first quarter from year-ago levels. Another 11 institutions reported lower EPS figures, while the remainder saw no change.

Earnings growth trends were even more favorable across a broader group of publicly traded banks and thrifts. SNL analyzed 403 out of 440 major-exchange-traded U.S. banks and thrifts that had reported first-quarter earnings as of May 7. Of that number, 57.82% saw year-over-year EPS growth, 5.21% saw no change and 36.97% reported a decline in EPS from the prior year.

Among the top 25 banks and thrifts, six showed linked-quarter and year-over-year EPS improvement: Wells Fargo & Co., Bank of New York Mellon Corp., Capital One Financial Corp., Northern Trust Corp., KeyCorp and Comerica Inc.

On the other hand, seven of the top 25 showed declines from the prior quarter and year-ago period: JPMorgan Chase & Co., Bank of America Corp., State Street Corp., Fifth Third Bancorp, New York Community Bancorp Inc., First Republic Bank and First Niagara Financial Group Inc.

Bank of America was the only bank among the top 25 to report a net loss in the first quarter, largely due to $6.0 billion in litigation expenses. The company took analysts aback by posting a loss of 5 cents per share, 10 cents lower than consensus estimates.

Meanwhile, results from Citigroup Inc. topped analyst estimates for the first quarter. Citi, which disappointed in the fourth quarter of 2013 when its EPS came in 10 cents below analysts' expectations, rebounded to net income of $1.23 per share, compared to the FactSet mean estimate of $1.14 per share. Citi had other issues to grapple with during the first quarter, including an objection to its Comprehensive Capital Analysis and Review submission and the discovery of fraud at its Banamex unit.

The banking industry as a whole continues to battle pressure on net interest margins. The median NIM of the 403 companies covered in the review fell 8 basis points quarter over quarter and 3 basis points year over year. Every bank in the top 25 saw NIM compress from the linked quarter except for First Republic. Margins fell year over year for all banks in the top 25 save for Citi, Regions Financial Corp. and Popular Inc.

Several companies touted improvements in credit quality and declines in nonperforming assets. Among the 403 companies in SNL's analysis, the median loan loss provision decreased to $300,000 from $460,000 in the fourth quarter of 2013 and from $498,000 in the year-ago quarter. However, several banks among the top 25 saw loan loss provisions increase quarter over quarter: SunTrust Banks Inc., U.S. Bancorp, Comerica, Popular, Fifth Third, BofA and JPMorgan. Zions saw a recovery for loan losses, albeit a lower one than in the previous quarter. Hudson City Bancorp Inc. recorded no provision for loan losses.

Keep reading the full report and analysis here: http://www.snl.com/InteractiveX/Article.aspx?cdid=A-28009729-12840

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(Leasing News provides this ad as a trade for investigations
and background information provided by John Kenny)

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##### Press Release ############################

FDIC $96.6 Million Sallie Mae Settlement

The Federal Deposit Insurance Corporation (FDIC) announced a settlement with Sallie Mae Bank, Salt Lake City, Utah, and Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), subsidiaries of SLM Corporation and Navient Corporation, respectively, and herein collectively referred to as Sallie Mae, for unfair and deceptive practices related to student loans in violation of Section 5 of the Federal Trade Commission Act (Section 5) and for violations of the Service members Civil Relief Act (SCRA).

This action results from an examination of Sallie Mae by the FDIC regarding Sallie Mae's compliance with federal consumer protection statutes, including Section 5 and SCRA, and a companion investigation by the Department of Justice (DOJ) related to the treatment of service members. As part of the settlement, Sallie Mae stipulated to the issuance of Consent Orders, Orders for Restitution, and Orders to Pay Civil Money Penalty (collectively, FDIC orders). The FDIC orders require these entities to pay civil money penalties totaling $6.6 million, to pay restitution of approximately $30 million to harmed borrowers and to fund a $60 million settlement fund with the DOJ to provide remediation to service members. The DOJ has also taken separate action against the entities with regard to violations of the SCRA.

The FDIC determined that Sallie Mae violated federal law prohibiting unfair and deceptive practices in regards to student loan borrowers through the following actions:

• Inadequately disclosing its payment allocation methodologies to borrowers while allocating borrowers' payments across multiple loans in a manner that maximizes late fees; and

• Misrepresenting and inadequately disclosing in its billing statements how borrowers could avoid late fees.

The FDIC determined that Sallie Mae violated federal laws regarding the treatment of service members (SCRA and Section 5) through the following actions:

• Unfairly conditioning receipt of benefits under the SCRA upon requirements not found in the Act;

• Improperly advising service members that they must be deployed to receive benefits under the SCRA;

• Failing to provide complete SCRA relief to service members after having been put on notice of these borrowers' active duty status.

In addition to the payment of restitution to harmed borrowers and a civil money penalty, the FDIC orders require Sallie Mae to take affirmative steps to ensure that disclosures regarding payment allocation and late fee avoidance are clear and conspicuous, that service members are properly treated under the SCRA, and that all residual violations be remedied to ensure compliance with applicable laws.

### Press Release ############################

((Please Click on Bulletin Board to learn more information))
(Leasing News provides this ad “gratis” as a means
to help support the growth of Lease Police)

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LOCATED AT:
4242 SOUTH 300 WEST
MURRAY, UTAH 84107
(801) 261-2919
UTAHHUMANE.ORG

Adoption Hours
Monday - Saturday: 10:00 AM - 7:00 PM
Sunday: 12 Noon - 5:00 PM

Adopt a Pet
http://www.adoptapet.com/

News Briefs----

Is IT Being Shut Out of Key Tech Decisions?
http://www.baselinemag.com/it-management/slideshows/is-it-being-shut-out-of-key-tech-decisions.html

A Changing Shape in America’s Age Distribution
http://www.nytimes.com/2014/05/13/upshot/a-changing-shape-in-americas-age-distribution.html

--You May Have Missed It

Mark Zuckerberg’s Newark schools cash drop:
“Everybody got paid but Raheem still can’t read”
http://www.salon.com/2014/05/12/mark_zuckerbergs

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SparkPeople--Live Healthier and Longer

Are You a Smart Snacker?
http://www.sparkpeople.com/resource/assessment_questions.asp?quizid=70

[headlines]
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Basketball Poem

March Madness II

There is another March Madness
and it also happens every year,
there are shouts, cheers, and tears...
I wonder if you can make a guess?

The fans - they dress in all sorts of wild gear,
and there are office bets placed all around;
the brackets are made and are NCAA bound
and no Madness is the same from year to year.

Can you guess what this thing I rhyme is all about,
or are you like some that really don't care?
But watch and you'll see some amazing air
for basketball fans - March Madness carries real clout.

Now I know this isn't about the blues,
but I wasn't in the mood to make you sad,
so I wrote this piece, I hope your glad...
the March Madness cure - Basketball shoes!

Poet Unknown---

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Sports Briefs----

USF strength coach resigns after questioning 49ers' selection of Aaron Lynch
http://www.tampabay.com/blogs/bulls/report-usf-strength-coach-straub-suspended/2179522

Trade win: 49ers beat out Bills for RB Hyde
http://blog.sfgate.com/49ers/2014/05/13/trade-win-49ers-beat-out-buffalo-for-rb-hyde/

Clippers blow lead late to OKC
http://www.latimes.com/sports/sportsnow/la-sp-sn-clippers-thunder-live-game-5-20140513-htmlstory.html

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California Nuts Briefs---

California governor releases $108 billion budget
http://www.utsandiego.com/news/2014/may/12/governor-to-release-update-to-record-spending-plan/

Martins Beach billionaire evades questions on stand
http://www.sfgate.com/science/article/Martins-Beach-billionaire-evades-questions-on-5472928.php?cmpid=hp-hc-bayarea

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“Gimme that Wine”

http://www.youtube.com/watch?v=EJnQoi8DSE8

This week "Malibu Coast" becomes an AVA
http://www.winebusiness.com/news/?go=getArticle&dataid=132614

Pelosi family wins delay of winery project
http://napavalleyregister.com/news/local/pelosi-family-wins-delay-of-winery-project/article_b3f7252e-d68e-55cd-85ef-40ae556ea9ba.html

Amazon's top-selling wines: They're not all Chardonnay
http://www.latimes.com/food/dailydish/la-dd-amazons-top-selling-wines-20140404-story.html

Guglielmo Wines Served Exclusively At DNC Fundraising Dinner For President Obama At Fairmont Hotel in San Jose
http://www.winebusiness.com/news/?go=getArticle&dataid=132519

Free Mobile Wine Program
http://leasingnews.org/archives/Feb2010/2_26.htm#mobile

Wine Prices by vintage
http://www.winezap.com
http://www.wine-searcher.com/

US/International Wine Events
http://www.localwineevents.com/

Winery Atlas
http://www.carterhouse.com/atlas/\

Leasing News Wine & Spirits Page
http://two.leasingnews.org/Recommendations/wnensprts.htm