Kit Menkin’s Top Ten Leasing Industry Rumors----

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10) Republic of South Carolina business is down two to three million dollars a month

since cutting off over 100 brokers.  Reportedly management is not concerned as

they state they are more interested in quality, than volume.  Their parent NetBank

is hungry for business, getting more aggressive in the mortgage marketplace.

The Atlanta Journal recently wrote a story mentioning the $80 million loss

at Commercial Money Market, in legal dispute now with the insurance underwriters, while other creditors line up in the bankruptcy proceedings in San Diego, California.

9) Matsco since being acquired by Greater Bay Bank has been getting tighter and

tighter with credit. It is reported they have not only slowed down approvals,

but expansion. Some think they are even getting out of several dental/medical

product segments. They are actively looking to purchase leasing portfolio’s from

lessors from $300,000 to $75,000, with credit on the lower side and  rates

on the higher side, according to inside information.   Greater Bay Bank stock has not been doing as well in the past ( that is being polite ).

8) Look for ex-Mellon to start/expand the Washington Mutual Leasing division.

7) GATX is reportedly going to close their San Francisco office, or greatly down size it, and consolidate the operation to their other office.  Reason is cost of real estate in San Francisco, higher salaries, and if business is not up, find places to cut

overhead to maintain your profit margins.

6) The Thomas J. Depping Sierra Cities memo that the RW Professional portfolio was not a significant item “or risk” to notify American Express during the period of

time of the purchase has become a “collector’s item.”  American Express,

when discovered “irregularities” in the portfolio,  asked for an audit, and after a “due diligence,” ruled the Depping decision as “ a bad business judgment” and nothing more.

5) A.J. Batt has been trying to get his internet/contact software onto the marketplace since he retired from ATEL Capital. The only problem he has is he doesn’t want to spend money to promote it ( nothing new, right?)

4)   His e-mail comes back, so it looks like Ted Clark is no longer at First Interstate Bank (which was taken over by UPS Leasing (remember, they said they wanted to concentrate on calling on UPS Leasing customers for equipment leasing business?)

3)  Ditto--- Dennis Cesen

2)   Preferred Leasing/Capitalwerts are going very strong, over 200 new

deals a month.  McQuitty-Reader are back!!! and strong! Balboa look out.

  1)  Net Bank has formed a new division with Jim Merrilees heading it up in Portland. What Net Bank has effectively done is create a new BCL/Manifest structure. I would appreciate it if you not put my name on it, but Republic was the last pure broker funding source in the country. The same distrusts that applied to BCL/Manifest now apply to Republic since Net Bank owns them both. More to follow.

Note: These are rumors, any confirmation, denial, or comments are

certainly welcome, and invited.  By the way, this was written Tuesday,

February 14^th, but not enough news to make a February 15^th issue. Editor