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Friday, October 12, 2007


Welcome New Readers
    Classified Ads --- Operations / Project Management
        Back to Basics: Credit and Risk Management
ELFA Convention: Sessions on Emerging Mrkts., Retaining Talent
    Classified Ads --- Help Wanted
        OVLA fall leasing conference date announced
SunTrust Ranked Highest in Overall Customer Satisfaction
    Grubb & Ellis Appoints President of Corporate Services Group
        News Briefs---
California Nuts Brief---
    Sports Briefs---
        This Day in American History
Baseball Poem
        Daily Puzzle

######## surrounding the article denotes it is a “press release”



Welcome New Readers

We welcome new readers to join our mailing list. The purpose is to be notified that there is a new edition posted. The e-mail points out the “headline” news in the edition. Often we send out “extra’s,”
when a newsworthy event occurs we think readers should learn about right away.

Last week we had many new readers, and this is directed to them to let them know we are no longer a daily; generally have editions only three times a week-it depends. If there is not enough “hard” news, we don’t send out an issue just to send out an issue. Many readers also will read a few stories the first time, then visit us the next day.

We encourage you to invite colleagues to subscribe. We are free. We strive for our goal of being independent, unbiased, and reporting fair news about what is happening in the equipment leasing industry, primarily in the United States. We do have readers in other countries. One of the reasons we go to press about 3am each morning is to reach not only the East Coast, where it is 6am, but also as far away as India where the business day has not ended.

Kit Menkin, editor



Classified Ads --- Operations / Project Management


East Windsor, NJ
Skilled Manager in credit, collections, training, documentation, policy and procedure, lease and finance operations. Get results and keep the customer coming back.

Boulder, CO
A proven Director acknowledged for the ability to creatively troubleshoot situations, and to develop/implement turn around programs in both start-up and established operations.

Project Management

Phoenix, AZ
Lease Administrator with exp. in lease administration, doc. & porfolio management for $200M in IT assets. Additional experience financial analysis process improvement/development.

To place a free “job wanted” ad here, please go to:

For a full listing of all “job wanted” ads, please go to:



Back to Basics: Credit and Risk Management
by Charles B. Wendel

Published on SME Newsletter
A newsletter from Financial Institutions Consulting

Key Message: Small business portfolios continue to perform well. So far, they have experienced none of the volatility nor losses of other lending business. Lenders can continue to produce strong results as long as they maintain the disciplines introduced in recent years. It may turn out to be "famous last words" but we foresee no small-business-related credit downturn either in the U.S. or in major European or Asian countries.

Credit Is King, Again
This week's newsletter continues our focus on basic issues related to SME (Small and Medium Enterprises) banking. Given the recent credit downturn and concerns about the next area to weaken, many of our clients are now putting a greater spotlight on small business credit and risk management activities.
The good news is that most small business groups should experience only a very limited credit downturn. In our view, five factors lead to this positive scenario.
1. Initial skepticism meant strong practices from Day One. Many of the managers leading small business lending initiatives faced, at best, skepticism from their peers and seniors. Concerns included the perceived economic instability of small businesses versus larger companies, their lack of capital and track record, and the possibility of fraud. The managers running these groups knew that any false steps could result in the business being marginalized and their own careers being sidetracked.
These concerns played a role in ensuring strong practices and procedures guided the small business effort from its inception until today. At many of the top performers worldwide, internal best practices from other bank areas have been applied to small business, industry-wide best practices have been uncovered and adopted, and a willingness to learn and enhance has been a guiding operating principle.
2. The business/credit partnership works. One executive we know described his bank as operating like a pendulum. Sometimes the pendulum swung toward selling activities. When that happened, bankers were pushed to call targets and propose deals, fast. When the pendulum swung back the other direction, the emphasis was on credit quality and resulted in the bank tightening its procedures and making it increasingly difficult to get a loan approved. Our experience is that a close partnership between the business and credit is more the rule than the exception among top small business lenders.
The best small business players avoid these dysfunctional swings. I was at a client meeting last week in which both the small business leader and credit head separately mentioned how well each worked with his counterpart. The business head stated how much he valued the credit perspective and wanted to see discussion on credit issues.
3. Exceptions to policy are rare. If your bank allows substantial exceptions to policies, you are probably going to experience a rocky ride. Exceptions often involve the lender "stretching" to do something it prefers not to do, and they often occur to placate an important internal constituency or to meet the extraordinary needs of an established customer.
Exceptions increase origination and processing costs and usually result in higher-than-normal losses. Top banks raise very high hurdles to approve exceptions; those that do so do not usually suffer.
4. Credit scoring works. The most successful small business lenders are increasing their reliance on credit scoring. In no instance have we heard of small business credit scoring resulting in problems for a lender. Most lenders should increase their reliance on auto-decision making rather than insisting on a score-plus approach. Those that want to "touch" applications need to rethink the type and extent of the analysis they do as well as better target their analytical efforts.
Banks failing to exploit credit scoring and auto-decision making are operating at a significant cost disadvantage. In addition, they may also be at a disadvantage in managing credit quality and portfolio risk.
5. Banks need to stick with small business lending. Small business is a segment that most banks cannot afford to lose, and the smartest bank managers know it. Example: one analyst estimated that net income from the combined impact of the small business, the business owner, and employees generates 40 percent of total U.S. financial services profitability. Our client experience suggests that at many banks this percentage is actually higher.
Recently, working both in the U.S. and Asia, we have heard senior executives refer to the SME segment as one of their bank's top priorities. The continued focus on this segment, a bank's willingness to stick with this segment when others come and go, is one of the keys to success in this business. This consistency and persistence (as well as a strong offer) is why American Express has one of the most powerful small business brands.
We know of several instances in which lenders to this segment have uncovered portfolio problems and adjusted approaches to deal with them. They kept lending, however, and kept making money. Conversely, others we know have operated in fits and starts, having pulled back from their lending activities several times over the last ten years. Those players have failed to gain any traction and seem to be in perpetual start-up mode.
Concluding Comment
Inevitably, some erosion in small business credit quality will occur and, in fact, we are already seeing higher delinquency numbers in some portfolios we know. Nonetheless, SMEs remain a highly attractive segment for lending as long as the focus and discipline that have guided leaders in the past continues.
* One more word on Organization. Our last newsletter, on the small business organization, resulted in several reader comments. One noted that we showed a clear bias toward placing small business within the retail group. In general, our view is exactly that, namely, a small business team is more likely to thrive in a retail environment. That said, we did not sufficiently underscore that the opposite can also be true. We can cite many instances, both in the U.S. and beyond, in which commercial or corporate banking successfully houses the small business group. In those cases, the knowledge base, culture, and political strengths of those groups fosters a growth environment for small business. As I mentioned we have seen situations in which just about every organizational model succeeds…or fails.



Equipment Leasing and Finance Association Annual Convention:
Sessions on Emerging Markets, Retaining Talent

Key Industry Issues Addressed at Largest Gathering of Equipment Financiers in the U.S.

Washington, DC—The 46th Annual Convention of the Equipment Leasing and Finance Association will feature more than 30 conference sessions on wide-ranging topics covering economic, financial, operational and other strategic business issues. Themed ‘Capital for a Changing World,’ the convention will be held October 28 to 30 at the Walt Disney World Dolphin in Orlando, FL.

The speaker sessions, panel presentations and roundtable discussions will cover issues at the forefront of the industry, from regulatory changes to human resources to emerging markets. The ELFA convention provides thought leadership and information that equipment finance industry participants from all functions can use to enhance their professional expertise.

Among the sessions are “The BRIC Economic Promise: Brazil, Russia, India, China,” which will explore conditions in these fast growing equipment finance markets. The session will review the BRIC countries’ legal infrastructure, credit infrastructure, the existing tax environment and how leases (financing/operating) are treated as compared to loans.

“There has been so much interest in emerging markets throughout the equipment finance industry and so little real strategic information,” said session moderator John Sabroske, Director, International, John Deere Credit.  “This session will take some of the mystery out of entering foreign markets and help attendees to determine potential business opportunities.”

Changes in the expectations of new industry hires and strategies to attract, retain and develop talent will be discussed in the session, “Innovative and Cost Effective Ways to Attract, Grow, and Retain Talent.” A recent graduate hire into corporate global financing also will share decision making used when selecting an employer.

“The job applicant marketplace is more competitive than ever,” said session moderator James Green, Vice President, Portfolio Management, Commonwealth Capital Corp. “This session will provide specific ways that ELFA members can recruit quality employees in today's environment.  We’ll provide insights from both a small and large company perspective, so attendees, regardless of their stature, will come away with innovative ways to compete for talent.”

For more information on the ELFA 46th Annual Convention, including a downloadable convention schedule and registration form, visit

About the Equipment Leasing and Finance Association’s 46th Annual Convention

The ELFA Annual Convention brings together 1,000 senior executives from the equipment finance sector including major financial services companies, banks, manufacturers and independent finance companies.  The comprehensive convention program features topical sessions, including programs tailored to members from companies in the Small Ticket, Middle Market, Large Ticket, Captive and Vendor, and Financial Institutions basis markets. 

Members of the media wishing to obtain press credentials to the event should contact Diane Helyne Zyats at 202-238-3438 or

About the Equipment Leasing and Finance Association

The Equipment Leasing and Finance Association (ELFA) is the trade association representing financial services companies and manufacturers engaged in financing the utilization and investment of and in capital goods.   ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad.  Its over 730 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as service providers.  For more information,
please visit

The ELFA is also the premier source for statistics and analyses covering the equipment finance sector.  To access ELFA's comprehensive industry information, please visit

Contact:  Diane Helyne Zyats
Equipment Leasing and Finance Association
202-238-3438 – office / 202-215-2117 – mobile



Leasing Industry Help Wanted

Funding/Lease Processor

Funding/Lease Processor
Los Angeles, California

Organized, detail person, 1 yr min. Brokering/discounting exp. Unlimited career growth.Contact:

Taycor has been in business for over 10 years with access to every major funding source.



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

OVLA fall leasing conference date announced

        COLUMBUS – The 51st Fall Leasing Conference will be held Thursday, Nov. 17, according to an announcement today (Oct. 11) by the president of the hosting Ohio Vehicle Leasing Association.
        Steve Sommer, OCLC, of Caldwell Leasing, Columbus, said the leasing conference would be held at the Embassy Suites Hotel – Dublin, 5100 Upper Metro Place, Dublin – just off the interchange of Ohio Rt 161 (West Bridge St.) with I-270 on Columbus’ Northwest Side.
        Sommer said additional details and speakers would be announced as confirmations are made.
        The OVLA president said “every effort” was being made to get a speaker from the Sales and Use Tax Division of the Ohio Tax Department to speak on the numerous changes in Ohio sales tax law contained in Am. Sub. H. B. 118 which became effective July 1.


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

J.D. Power and Associates Ranks SunTrust Highest in Overall Customer Satisfaction in 2007 Home Equity Line of Credit/Loan Servicer Study(SM)

ATLANTA, Oct. -- SunTrust Banks, Inc. has been ranked "Highest in Customer Satisfaction among Home Equity Line of Credit/Loan Servicers" according to a recent study conducted by J.D. Power and Associates. Twenty four national home equity line of credit and loan servicers were included in the study and results were based on responses from more than 4,900 customers across the United States.

Home equity servicers are responsible for managing customer account relationships and general account administration.

In the J.D. Power and Associates study, servicers were evaluated in key areas including product features and functionality, funds access, billing and payment processing, and overall customer service courtesy, knowledge, and responsiveness.

"We are pleased to receive the highest ranking in the first overall customer satisfaction study from J.D. Power and Associates for servicing home equity lines of credit and loans. It underscores that SunTrust's long-standing focus on building customer relationships and adherence to high performance standards are benefits that are recognized and valued by our customers," said SunTrust Corporate Executive Vice President Gene Kirby, head of the Company's Retail and Commercial Banking lines of business.

SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of June 30, 2007, SunTrust had total assets of $180.3 billion and total deposits of $122.9 billion. The Company operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states and a full array of technology-based, 24- hour delivery channels. The Company also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides mortgage banking, insurance, brokerage, equipment leasing and capital markets services. SunTrust's Internet address is


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

Grubb & Ellis Company Appoints Dylan Taylor President, Corporate Services Group

CHICAGO, -- Grubb & Ellis Company , one of the leading providers of integrated real estate services, today announced that Dylan Taylor has been promoted to President, Corporate Services Group.

"Dylan has played an instrumental role in the growth of our Corporate Services platform over the past two years," said Maureen Ehrenberg, President of Grubb & Ellis' Global Client Services Group. "We are pleased that he will be leading our Corporate Services Group as we continue to focus on the expansion of our platform and service offerings to better serve our growing list of corporate clients, a market to which we remain committed to being the industry leader."

Taylor, 36, joined Grubb & Ellis in 2005 as Executive Vice President, Regional Managing Director, Corporate Services. The Corporate Services Group provides account management, strategic consulting, valuation, project management and lease administration to corporations with multi service, multi-market needs throughout the globe.

Prior to joining Grubb & Ellis, Taylor spent more than five years as Senior Vice President, Corporate Solutions at Jones Lang LaSalle. Earlier, he spent nearly seven years at SAIA Burgess, a global supplier of electronics based in Switzerland, in various positions. During his tenure, he became the youngest member of senior management in SAIA Burgess' history.

Taylor holds a bachelor's degree with honors from the University of Arizona and an MBA from The University of Chicago. He is an active member of CoreNet and was co-principal author of the CoreNet Global research report Corporate Real Estate 2010: The Strategic Role of Place.

Grubb & Ellis Company

Grubb & Ellis Company is one of the world's leading full-service commercial real estate organizations, providing a complete range of transaction, management and consulting services. By leveraging local expertise with our global reach, Grubb & Ellis offers innovative, customized solutions and seamless service to owners, corporate occupants and investors throughout the globe. For more information, visit the Company's Web site at


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

News Briefs----

Volvo CE to invest US$90 mln in Chinese JV

Holiday Inn Express Acquired with Loan from GE Capital Solutions, Franchise Finance

Partners Give Thumbs Up To Mozilla's Mobile Firefox Plan



Sports Briefs----

Great America owner will consider selling theme park to 49ers

The Bell Tolls: Pats' standard is Cowboys' litmus test

Panthers May Pick Testaverde



California Nuts Briefs---

Governor pushes leasing lottery to fund health plan

Forget about lighting up with children in the car


This Day in American History

    1802 - the first West Point graduates were Joseph Gardner Swift of Massachusetts and Simon Magruder Levy of Maryland, also the first graduate of the Jewish religion. They graduated as second lieutenants. They were the only students to graduate of the original class of 10, which consisted of 5 men from Massachusetts, and1 each from Connecticut, Maryland, Missouri, New York and Virginia. Levy resigned from the army in 1805 because of contracting the measles, quite serious in its day. Swift was brevetted a brigadier general on November 11,1813 for his heroism in the battle at Chrysler's Field in upper Canada. On February 19,184, he was promoted to brigadier general for her meritorious service in the defense of New York in the War of 1812. He became head of the Military Academy in 1816 and retired from the Army in 1818. He died in 1865.
    1843 - the B'Nai B'rith ( Sons of the Covenant) was founded in New York City by Henry Jones and 11 others.
    1882 - the first hotel to install electric lights was the Prospect House, Blue Mountain Lake, NY. In 1881, the electricity was installed, but the lights were not entirely dependable. In 1882, the Duke of Beranga and his party arrived after dark to celebrate Columbus Day. As they were show to their rooms the lights went out, but after a slight delay the lights went on again. History records this event, and states the name of the hotel was later changed to the Eutowana.
    1914- Annette Abbott Adams became the first U.S. federal prosecutor who was also a woman when she was sworn in an Attorney General in California.
    1939 - pianist Mary Lou Williams records Little Joe from Chicago.
    1950 - Verve Records cuts Getz Meets Mulligan in HiFI
    1950 - “Burns and Allen Show” premiered. The comedic husband and wife duo of George Burns and Gracie Allen starred as themselves in this comedy series in which Burns was the straight man and Allen was known for her ditziness. The show employed the technique of speaking directly to the camera (“breaking the fourth wall”); Burns often commented on the plot, told jokes or tried to make sense of Allen's actions and statements. Also on the show were their real-life son, Ronnie Burns, Baa Benaderet, Hal March John Brown (until blacklisted by McCarthyites in the “red scare”), Fred Clark, Larry Keating, Bill Goodwin and Harry von ZeII. The show was done live for the first two seasons and included vaudeville scenes at the end of each episode.
    1953 - “The Bob Hope Show Premieres on TV. This was a monthly television show and sometimes every other week. During the first season he hosted “The Colgate Comedy Hour,” and during the later seasons his show was seen replacing and then alternating with Milton Berle (and in 1955-56 with Martha Raye and Dinah Shore). Leo Robin and Ralph Rainger wrote Hope's trademark show-closing song, “Thanks for the Memory.
    1979 - after an All-American career at Indiana State, forward Larry Bird made his professional debut with the Boston Celtics. He scored 14 points and had five assists in 28minutes and the Celtics beat the Houston Rockets, 114-108. Bird soon proved his ability to shoot, pass and rebound. He led the Celtics to 32 more victories than they had the previous season and won the league's Rookie of the Year Award.
    1999 - according to the United Nations, the population of the world reached six billion on this date. More than one-third of the world's people live in China and India. It wasn't until 1804 that the world's population reached one billion; now a billion people are added to the population about every 12 years.

World Series Champions This Date

1907 Chicago Cubs
1916 Boston Red Sox
1920 Cleveland Indians
1967 St. Louis Cardinals



Baseball Poem

Setting The Record
Written by Don Angel © in 10-2001
Published: Baseball Almanac (08-2003)
1998, Mark McGwire was the man.

Three years later would his 70 homeruns stand?
Coming home to the San Francisco Bay.
Three games with the Dodgers were left to play.
One more long ball would bring a new homerun king,
But Barry Bonds would rather have the ring.
Closing in on the record, Bonds has been walking as of late.
Los Angeles brought five runs across the plate.
During the first inning contest, Chan Ho Park would give it his all.
Bonds launched a 1-0 pitch over the right center-field wall.
Millions witness 71.
The Date — October 5, 2001
The night was still young,
His next at-bat was yet to come.
72 would be sent on it's way,
History was made twice today.
Joy would be short lived because of a Dodger's win,
The Giants playoff hopes would end.
Two days later we would see.
Homerun number 73.




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?



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