Washington Mutual Exits Equipment Leasing
As reported by Leasing News last December in the Washington Mutual
Financial Corporation purchase by Citigroup there would not only be cuts in branches but products, such as leasing. It was competing in the
$250,000 to $15,000,000 market place.
A news “sales manager” was hired along with salesmen in
key states, but it was not long that they ran into a wall.
Leasing News was not able to obtain a comment at the
time, or recently, as it was reported they were in trouble
The Citigroup press release December 2nd, 2003 on the purchase
of the Financial Corporation:
“Operational synergies include some branch consolidation (about 30% of branch closures), funding cost benefits and enhancements to centralized processing systems. Processing enhancements will result from a combination of both WAMU Finance and CitiFinancial practices.
“Citigroup expects future revenue growth from the acquisition by targeting an attractive group within nonprime markets and stronger pricing. Integration risk is low given the expertise previously demonstrated by Citigroup. “
The release of salesmen, several who have advertised
in Leasing News classified ads, was an indication that
the leasing department was also going to go “bye-bye.”
They were reportedly not competitive in speed, credit comfort,
and pricing in the marketplace they chose, according to reliable sources.
Washington Mutual states the closure of the 53 commercial locations will occur between August 20th and October 29th
with from 850 to 1,000 employees let go. The following
14 states are affected: Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Nevada, New Jersey, New York, Oregon, Texas, Utah and Washington