Citigroup's Profits Fall in 4th Quarter

Paul Eidelkind. Dorado Beach Hotel in Puerto Rico. ELA Funding Exhibition in Chicago, April, 1990. At the time the picture was taken, Cliff Fromm was/is with Capital Leasing, Paul Eidelkind was/is with Parimist Funding Corp. and the

others, Steve Geller, Bob Salge, Francie Wilbourne and Allison Feinstein (now

Pryor) were with ORIX Credit Alliance.

Photo courtesy of:

Steven B. Geller, CLP

Leasing Solutions LLC

20 Dike Drive

Wesley Hills, New York 10952

845-362-6106

fax 845-354-2803

cell 914-552-0842

www.leasingsolutionsllc.com

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Classified Ads---Jobs Wanted—Right Now

Sales Manager: Atlanta, GA

Professional. finance mgr. w/formal credit ed./ reg. vp/ secured/unsecured commercial loans/ direct end user network/equip. leasing/structuring small,mid,big ticket transactions. 10+ years NE & SE. Have vendor servicing w/existing and active network of accounts will bring with me. Email:AlanAustin2000@msn.com

Sales Manager: Seattle, WA

Senior level sales professional w/ (20) plus experience in mid market financing & leasing. The last (8) plus years being self employed in middle market brokerage. Email:markhenley@qwest.net

Sales Manager: Atlanta, GA

30 years in transportation Finance with strong management/ sales background. Represented company on national & region markets. Started two successful operations- produce profits and growth. Email:pml@mindspring.com

Sales Manager: New York, NY

I have over 25 years owning an independent leasing company that specialized in truck leasing. Tow trucks, Limos, ambulances, tractors, etc.. Email:rfleisher@rsrcapital.com

Senior Management: Long Island, NY

Degree Banking/Finance. 13 years leasing exp. Now prez young leasing company where promises were not met. Interested in joining established firm with future. Email:bob33483@yahoo.com

For the full list, please go to:

http://65.209.205.32/LeasingNews/JobPostings.htm

Fred St. Laurent Joins Leasing News Advisory Board

http://two.leasingnews.org\images\stlaurent.gif

Fred with his wife Nora,

Hilary is the oldest 11

Luke is 8 and Isaac is 4

Editorial Advisory Board

Bob Baker, Wildwood Financial, St. Louis, MO
Steve Crane, Bank of the West, Walnut Creek, CA
Phil Dushay, Global Leasing, New York, NY
Steve Geller, Leasing Solutions LLC, Wesley Hills, NY
Ken Greene, Attorney, Greenbrae, CA
Bruce Kropschot, Kropschot Financial Services, Vero Beach, FL
Charlie Lester, LPI Financial, Marietta, GA
Bob Rodi, LeaseNow, Warrendale, PA
Bob Teichman, Teichman Financial Training, Sausalito,CA
Rob Yohe, Yohe and Associates, Stilwell, KS
Ginny Young, Brava Capital, Orange, CA

Fred St. Laurent has covered news events for Leasing News, taken pictures,

and contributed employment leads for readers benefit, such as the Apple Leasing

National Sales Manager position or the 18 regional manager positions listed by

UBS . His heart has always been in the right place, and at a Leasing News

Advisory Board meeting two years ago, it was voted to ask him to join.

Just as I was about to ask him, he left the recruiting industry to become

a leasing salesman, himself. He thought the grass was greener on the

other side.

Fred eventually went back to the industry he knew best.

“The last two years have been complicated for everyone, “ he said. “ Many of my friends in Leasing have had to adapt to the changes in the industry. I took a break

from actively marketing my recruiting services in Leasing to focus on

building a team with Bradbury and Williamson Inc. in Atlanta GA.

http://www.bwresults.com/industry/financial_services.phtml

“Even though I didn't actively market my services as a recruiter in 2002 I

managed to pick up a couple of assignments. Both were new relationships that

were at the end of their rope and willing to take on a relationship with me

in a consultative fashion. Both were exclusive searches and the results were

extremely satisfying. I have kept my hand firmly on the pulse of this

industry.”

He then moved from Florida to Atlanta, GA.

“The reason I decided to come to Atlanta?

There are several:

George Bradbury was with Pitney Bowes for 20 years and Lee Williamson was an

NFL Quarterback, who was a one million dollar producer as a Mortgage

recruiter. They have a National retained relationship with Chase Mortgage.

The environment here, in Atlanta is one that I thrive in and when they

offered to move us here from Florida we decided to go for it. We found a

nice place near Lake Lanier NE of the city about 10 minutes from the office

and my family loves it.

“The Financial Services team has ramped up quickly and we are leading the

company in billings already.

“Leasing has become a part-time job for me in some ways, as I have only taken

the best of the assignments that come my way. This year I do plan on ramping

up my presence in Leasing again but my target is the beginning of the second

quarter.”

Regards,

Fred St Laurent

Managing Director - Recruiting

fstlaurent@cfl.rr.com

Fred’s Family Album

http://www.fredstlaurent.com/Isaac/page5.html

### #######################

Fred St Laurent is a seasoned marketing professional with a real

understanding of the Financial Services Industry. Fred has been a member of

ELA, UAEL and NAELB. He is currently involved as a member of eLNA. He is a

participant in many forums on behalf of ethics related issues, and has

published articles and spoken publicly about his views concerning topics

related to the future of the Financial Services Industry. Fred trained in

the trenches as a Project Coordinator with Management Recruiters

International, learning from thousands of financial professionals before

being promoted to a Senior National Recruiter. He has mentored under some of

the best Financial Professionals and Recruiters in the industry. His

position as Managing Director of Recruiting of the Financial Services

Division with Bradbury and Williamson consists of building and leading a

team of Recruiters in the financial services industry.

He will also be responsible for the development of retained business, built

on exclusive relationships, structured as partnerships with the goal of

building highly productive teams.

Fred has a depth of sales management experience, having developed marketing

plans, hired and trained sales teams, and he has a firm grasp on what elements are required to create an environment of success for both clients and candidates.

####### ##########################################

AGLF Growing---Las Vegas Conference to be Top Event

Association for Governmental Leasing and Finance increased ten members.

This group with all its focus on tax-exempt and municipal transactions should

be one of the largest as almost all states, counties, and cities are facing

deficits. Leasing would then be more attractive.

Out of the 263 members, only 135 are “company” members. The rest are “individuals” from the company. Company members pay $650 a year, and

individuals $150. The previous year saw 253 with 87 companies/169 individual

members..

“Individual membership is down, “ says Executive Director Graham Hauck.

“The large companies have cut costs, cut sections, and those involved in ‘non-tax’

or ‘tax exempt’ leasing were moved to other sections.”

The members by the category “broker” have also leveled off, from nine in 1999, ten in 2000, twelve in 2001, back to ten in the year 2002.

“This is definitely a small niche, “ Hauck explains. “ Many of our members

belong to the Equipment Leasing Association, for sure, but I can tell you

there is a lot of business, a lot of networking, done at our two conferences

each year.”

Mr. Hauck extended an invitation to Leasing News to attend the Las Vegas

Conference as his guest to prove the point.

“There is a lot of networking that goes on at our conferences, “ he explained.

“With the lack of income for existing program, leasing will be more necessary

for municipalities. Many of them will be “finance” rather than “tax” transactions

for “cash flow.”

It should also be noted that non-members pay the same fee for the AGLF Leasing

Conference.

The association has a very informative, clean website, with much information

for their industry not available anywhere else:

http://www.aglf.org/

AGLF was founded in 1981 to serve municipal leasing industry. Publishes

Bi-monthly newsletter; sponsors 2 annual conferences; 50-state leasing

survey; federal leasing survey; and conducts numerous industry projects.

Two types of membership: regular member - private sector organizations

active in leasing/finance; governmental member - any state, territory, US possession, District of Columbia, or political subdivision of above.

Dues information:

As many people as would like to from any one company may join. One person

must be designated the Regular Member and pay $650/year dues. The other

members are designated Additional Members and pay $150/year dues.

Non-members are very welcome at our conferences. For registration materials, they can call 202.742.AGLF (2453) or email info@aglf.org

2003 Annual Spring Conference

May 14-16, 2003 / Four Seasons Hotel, Las Vegas, NV

The 23nd AGL&F Spring Annual Conference will be held in Las Vegas, Nevada at the Four Seasons Hotel – May 14-16. Room rates for the Four Seasons Hotel are $230.00 per night till April 11, 2003. You may call now to make your room reservations by dialing 1.877.632.5200 – Please be sure to mention that you are with the Association for Governmental Leasing and Finance to receive the above special rate.

AGL&F 23rd SPRING ANNUAL CONFERENCE

TENTATIVE SCHEDULE OF EVENTS

Wednesday, May 14

2:00 PM – 4:00 PM Basics Session

Thursday, May 15

8:00 AM – 5:00PM Keynote Speaker, General Sessions and Luncheon

Evening – Annual Conference Dinner Event

Friday, May 16

8:00 AM – Noon General Sessions, Ending with the Lawyers’ Panel

If you are interested in becoming a sponsor for the 2003 Annual Spring Conference please:http://www.aglf.org/SponsorForm03.pdf

Jim Merrilees moves Forward---Again/Firstcorp Sold?

“You reported Jim Merrilees has left Firstcorp, but here is

the rest of the story, Firstcorp has been sold to IFG, in IL. John Estok

will be moving to Chicago. Len (Ludwig) of course has his new business

(venture leasing-Ven???) so this looks like the end of Firstcorp as a local

Pacific Northwest lessor.”

( name with held )

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Ty Hanson—He is a Believer!!!!

Subject: Your newsletter got me a tremendous response!

I hope everything has been going well for you and your family in the

year 2003. As you can imagine, it's been quite tough getting back on my feet

from the CMC debacle! As you know, that situation still has not been

resolved in court and I don't think either of us will truly know what

happened until the lawsuit with the sureties is settled. But, I still stand

by Ron Fisher and think it was the sureties that caused the mess! That

situation caused pain and relationships to be severed and I've always

understood that, and I am sorry I couldn't control the situation more. But,

being only an employee for the company I truly was an innocent bystander.

Kit, before I go any further I would like to thank you for printing my

e-mail. The response has been much better than when I originally sent it

myself. I have received 8 calls this morning from brokers around the country

ALL willing to send me business! The top three responses have been :

3. "I made a lot of money funding challenging deals with CMC and when it got

ugly CMC sent the money (deposits) back to my customer"

2. "Ty, you were ALWAYS honest and upfront about what you knew at CMC and I

have no problem doing business with you or your father again"

1. "Today's economy is tough and I've been looking for a source to do my

tougher credits. I am glad to hear you and your father are back in business"

One broker sent me an e-mail that was funny but had a

serious tone. It read, "I am still bleeding from the last time I did

business with you. Give me a call and tell why I should do it again". I

called him back and we had a great conversation and I will hopefully see his

business soon.

Kit, the great news about our (Bill Hanson and myself)

business this time is we fund within 5 business days. Bill Hanson has his

own lines of funds for Fair Isaac's 625 to 700. And we are basically a super

broker to another honest and reputable funding source on the tougher

credits. This funding source is based on a strong interview with the

customer and extra collateral! I wish you and your readers success in 2003.

From reading your newsletter about all the leasing

companies that have gone out of business, I am glad and proud to say "We're

still here!" My Dad (Bill Hanson) also said to say hi and sends only good

thoughts :)

See you at the conventions

Ty Hanson

tyh@cnaleasing.com

(No one can complain about your positive attitude, for sure. The Commercial Money Center and its various corporations and law suits are not as simple as you (Ty) makes them out to be. While you (Ty) were an employee of CMC, Bill Hanson was listed as the vice-president on the three corporations. I know you

were commissioned, as you have told us you were receiving approximately

$5,000 in commissions until the operations closed at CMC.

The other side to the story is the insurance companies are claiming fraud and misrepresentation . Three have a major suit in the Cleveland, Ohio courts. It is over $240 million. Bankruptcy may not be able to protect these claims as fraud and misrepresentation are exclusions. The insurance companies, sureties as you call them, really are fighting over claims to the assets. The Florida and Nevada matters have been moved to San Diego, California.

Current status is that the Lessees (about 250 of them) have filed suit

in United States Bankruptcy Court (USBC) for the Southern District of California against about 20 lenders for usury seeking damages for past payments, voiding the lease for future payments and voiding the security interest. In USBC, the

issue is whether the case should be transferred up to Los Angeles. The

central legal issue is whether the estate of CMC has any future interest

in the residuals.

These are not all the lessees, but those who joined the suit. There are many

vendors who have claims in the bankruptcy court. They will have to wait in line

after the feds and the state, personal property tax claims, and employee claims

issues. A lot of people were hurt, and it appears it will get worse. It is true until the cards started to tumble, many brokers make “good commissions.” Many attorneys liken the operation to the “Ponzi” conspiracy.

There is also the hope commissions paid the last year of operation may be labeled assets and those brokers who received payment, may be held liable as they participated in the alleged fraud and misrepresentations. People, such as yourself,

may have to pay back these monies. It’s not over until the fat lady starts to sing.

On 2/20/03, the Court will hold a status conference as to this issue

and may determine a briefing schedule as to this issue.

I have a Pacer account, but have not had the time to go through the filings,

which are numerous and quite large. The FBI is investigating fraud charges

regarding non-existing Kiosks with some people who were involved turning

states evidence, we are told. Law enforcement believes several of the officers of the several corporations involved have more than a questionable past, and

were actively manipulating the situation and hope to prove this in a court

of law. They may wind up in jail, all the officers.

As important, least we forget, there are several employees , sureties, banks and customers who are finding it slightly more difficult to 'get back on their feet'. I personally feel sorry for those employees who have CMC on their resume,

and were “innocent” to the goings on. Editor)

“See-I-Tee” the Cranes Cry

Parrs-Deusen

Fly. Fly. We’re Making Money!!!

Al Gamper

LIVINGSTON, N.J., -- CIT Group Inc.

(NYSE: CIT) today announced that its Board of Directors has declared a regular

quarterly cash dividend of $.12 per share, payable on February 28, 2003, to

shareholders of record on February 15, 2003.

Marianne Miller Parrs, and Lois M. Van Deusen, have joined its Board of

Directors.

Ms. Parrs is an Executive Vice President at International Paper Company

where she has been employed since 1975. Ms. Parrs' current responsibilities

include Administration, Information Technology and Human Resources. Prior to

assuming her current position at International Paper, Ms. Parrs served as

Senior Vice President of Administration and Chief Financial Officer of

International Paper. In addition, Ms. Parrs was a Security Analyst at a

number of firms prior to joining International Paper.

Ms. Van Deusen is the Managing Partner of McCarter & English, LLP based in

Newark, New Jersey, and is the first woman to hold the position of Managing

Partner in a major New Jersey law firm. As a partner in the Real Estate

Practice Group, Ms. Van Deusen concentrates on commercial real estate

transactions.

"We are pleased to welcome Marianne and Lois to CIT's Board. These newest

appointments are further validation of CIT's commitment to a strong, diverse

and independent Board," said Albert R. Gamper, Jr. Chairman, President and

CEO.

CIT's Board of Directors is now comprised of seven independent members

plus Albert R. Gamper, Jr. who is Chairman, President and CEO of CIT Group

Inc. In August, the Board appointed Peter J. Tobin to the position of Lead

Director and Chairman of the Audit Committee. Peter J. Tobin is the former

Chief Financial Officer of The Chase Manhattan Corporation and Dean of the

Peter J. Tobin College of Business at St. John's University. The Honorable

Thomas H. Kean is Chairman of the Compensation and Governance Committee andserves as the President of Drew University.

About CIT:

CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance

company, provides clients with financing and leasing products and advisory

services. Founded in 1908, CIT has nearly $50 billion in assets under

management and possesses the financial resources, industry expertise and

product knowledge to serve the needs of clients across approximately 30

industries. CIT holds leading positions in vendor financing, U.S. factoring,

equipment and transportation financing, Small Business Administration loans,

and asset-based and credit-secured lending. CIT, with its principal offices

in New York City and Livingston, New Jersey has approximately 6,000 employeesin locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit http://www.cit.com .

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Housing Starts Rise; Highest Since 1986

By REUTERS

WASHINGTON (Reuters) - U.S. housing starts surged unexpectedly in December to their highest level since mid-1986, the government said on Tuesday, as the lowest mortgage rates in almost 40 years hooked buyers and lent vigor to one of the few healthy areas of the economy.

Permits to break ground, an indicator of builder confidence in future business, also jumped to the highest level in more than 16 years, the Commerce Department said.

``Start with the lowest mortgage rate in decades, add some positive income growth, throw in a pinch of favorable tax treatment of capital gains on homes, top that off with a record of strong price appreciation -- these produce extraordinary numbers,'' said Ken Mayland of Clearview Economics.

Stocks jumped initially on the news but the rally fizzled over concerns about weak corporate earnings. U.S. Treasury bond prices fell in early trading but recovered as equities failed to sustain their momentum.

SINGLE-FAMILY HOUSING BOOM

Housing starts rose 5 percent to a seasonally adjusted annual rate of 1.835 million units last month from an upwardly revised 1.747 million rate in November, Commerce said. Building permits leaped 8.2 percent to a seasonally adjusted annual rate of 1.880 million units from an upwardly revised 1.738 million in November.

Starts on single-family homes were at their highest since 1978, while single-family permits set a record in December.

In terms of full-year figures, estimated housing starts at 1.705 million and estimated total permits at 1.726 million for the whole of 2002 would be the highest levels since 1986, the government said.

Starts on single-family homes of 1.360 million for the year would be the highest level since 1978. Single-family housing permits of 1.319 million would be the highest since the government began keeping track in 1959.

JUMPING ON LOW RATES

Mortgage rates have dipped to levels not seen since 1965 and stock markets are in a three-year swoon. This has fueled home buying and building, making the sector one of the rare bright spots in a slumping U.S. economy.

``Traffic on sales has been good. The public is very smart. They know when interest rates are low, so they are taking advantage of it,'' said James Nutter of James B. Nutter Mortgage Co. in Kansas City, Mo.

Droves of home owners have traded in mortgages for ones with lower interest rates, extracting cash from the rising value of their homes and pumping $132 billion into the U.S. economy in 2001 and early 2002, according to the Federal Reserve. Home building and associated economic activity has contributed to the nation's gross domestic product.

The boost in housing starts comes as uncertainty over the prospect of a war with Iraq has contributed to making what the Federal Reserve has called an economic ``soft patch'' look potentially more extensive.

Economic growth braked sharply as it moved from the third quarter of 2002 to the fourth. Employers reported job cuts and a decline in industrial output in December. Shoppers disappointed business owners during the November-December holiday season, despite car makers' sales incentives.

Signs have emerged that housing may slow in months to come. The number of people applying for a loan to buy a home or to refinance a mortgage slipped in early January, the mortgage bankers' trade association reported last week.

Also, homebuilder optimism weakened slightly in January on the expectation of higher rates, the home builders' trade association reported last week.

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Official U.S.Department Agriculture Housing Report

sent by

Carl Villella, CLP

CVillella@msn.com

December starts increased 5.0%, to 1.835 million (SAAR), with single family up 4.9% to 1.473 million (Saar), while the more volatile multifamily sector was up 5.5%. Regionally, the Northeast was up 18%, the West was up 9.8%, the Midwest was up 4%, and the south was up less than 1%. Permits, an indicator of future activity, was up 8.2%.

http://two.leasingnews.org/temporary/chart.htm

Analysis and outlook: 2002 was the best year for housing construction since 1986. For the year, conventional starts totaled 1.704 million, up 6.4% over 2001 totals. Single family reached 1.36 million, up 6.8% from the previous year. Even multifamily appears to be picking up some, particularly the past several months. In addition, new home sales are expected to reach 976 thousand, another record, while existing home sales should approach 5.6 million, yet another record. Housing remains one of the few bright spots in the economy, and along with consumer spending, it represents almost 75% of the economy (GDP), and an even higher percentage of net economic growth in 2002. The main drivers continue to be attractive interest rates, continuing income growth despite a sluggish job market, and stable consumer confidence.

The main problem for the economy is twofold: (1) weakness in the manufacturing sector (capacity utilization remains below 75%), and (2) a "jobless recovery" to date. However, productivity increases have been solid, and this has supported income growth, and that has promoted demand for housing in spite of the fact that there has been no net job creation in the past 18 months. The big unknown of course are the "geopolitical factors" - potential war with Iraq; continuing terrorism; North Korea; …..

Looking forward to 2003, most analysts are expecting some pullback from today's high levels - NAHB's latest forecast calls for a 3.5% decline in starts to 1.63 million with 1.31 million single family and 322,000 multifamily. Existing home sales and new home sales are also expected to pull back modestly. Their forecast assumes the economy improves gradually through 2003 and if there is a war with Iraq, it will be over quickly. Under such a scenario, interest rates would remain attractive, manufacturing would rebound eventually, the dollar would remain relatively strong, and the job market would pick up momentum - all positive for housing. A prolonged conflict, on the other hand, would impact inflation (via higher oil prices and a weaker dollar), and consumer confidence would waver. Furthermore, business investment would be delayed further as would any meaningful economic recovery. And, don't forget the stock market - any recovery there depends on earnings improvement, and that won't happen without a stronger economy.

Breakdown by State:

A major factor in the increase can be attributed to extremely low mortgage rates,

the lowest in over 30 years. Not only does it put more monthly spending money when a house is refinanced, but makes new home financing more attractive.

Investors and business have turned away from capital expenditures to

housing.

A $250,000 mortgage at 7.5% for 30 years is $1,736. and at today’s low

rate, it is $1,428. Many finance companies are offering a five year fixed

rate with one point at 4.5% and then variable after five years, with the thinking

the homeowner most likely will sell in five years. A $400,000 mortgage at

7.5% is $2,779, but at 4.6%, $2,042.

It is like getting a $550,000 mortgage, meaning if the house lost $150,000, it

would be like having a 7.5% mortgage all along. Even if the housing market were to get soft, go down 25%, it would be better to buy today at these low rates.

Recent history has shown in the last fifty years, houses appreciate as we have run out of land. Real estate then may have been the better market than the stock market, especially if you have the cash flow to weather any down turn in

the real estate marketplace. Mortgage companies and banks have also reaped

the rewards of business, earning points, financing fees, and profit in the

short run.

Merrill Lynch---Oh, Boychick!!!

If you didn’t see the “Double Truck” plus ad in the New York Times,

let me tell you Merrill Lynch is looking for business loans, and leasing.

They like secured lines, but the good news is no one can beat their

rate, not even GE.

More to follow

Oh, No! Mr. Bill--Citigroup's Profits Fall in 4th Quarter

By REUTERS

NEW YORK (Reuters) - Citigroup Inc. (C.N), the world's No. 1 financial services company, on Tuesday said its fourth-quarter profit fell 37 percent, after it took $1.55 billion in charges to settle the stock research scandal and cover potential losses on loans and Enron-related litigation.

The New York-based company, which has more than $1 trillion in assets, earned $2.43 billion, or 47 cents a share, compared with $3.88 billion, or 74 cents a share, a year earlier.

Citigroup also said it would deliver double-digit income growth this year following an 8 percent rise in earnings for all of 2002. It earned a record $15.28 billion last year.

Wall Street firms including Citigroup recently settled charges that they issued biased stock research to win business advising companies on mergers and new share offerings. This, plus loan losses and lawsuits over financing deals Citigroup arranged for bankrupt energy trader Enron Corp. (ENRNQ.PK), caused the company to take $1.3 billion in charges and boost loan loss reserves by $254 million in the quarter.

The losses outweighed growth at Citigroup's large consumer business. This unit expanded as Citigroup added 352 branches and $25 billion in deposits through its acquisition of California-based thrift Golden State Bancorp in the quarter.

``It was right in line with our estimate,'' Lehman Brothers analyst Brock Vandervliet said of the results. ``The global corporate and investment bank wasn't quite as strong as we had hoped in terms of revenue and net income performance but the consumer business was a bit stronger than what we'd been looking for.''

Profits at Citigroup's consumer group, which includes credit cards and retail banking, rose 26 percent in the quarter to $2.37 billion. But its corporate and investment bank posted a $344 million loss in the quarter, after the $1.3 billion charge. This compared with a 2001 fourth-quarter profit of $905 million in this business.

Its proprietary investment activities, or investing it does for itself, posted a loss of $75 million because of write-downs in some emerging markets. This compared with a profit of $335 million in the 2001 quarter.

``During 2002, our company faced several significant challenges: continued weakness in global markets, record bankruptcies in the developed world, political and economic upheaval in a number of countries in which we operate and intense scrutiny of its business practices,'' Citigroup Chairman Sanford ``Sandy'' Weill said in a statement.

Record Loss Is Foreseen by Japanese Bank

By KEN BELSON

TOKYO, — Mizuho Holdings, one of the world's largest banks by assets, said today that it expected to report a loss of 1.95 trillion yen ($16.5 billion), the worst in Japanese corporate history, for the fiscal year ending March 31.

The projected loss is nearly nine times the initial forecast. And it comes as Japanese financial regulators press the country's banks to calculate their balance sheets more accurately than in the past, including a more strict evaluation of what loans are nonperforming. The bad-loan total at major banks has already ballooned to 52 trillion yen ($433 billion).

As the regulators begin a new round of bank inspections, Mizuho and its rivals are trying to raise capital to offset the deeper bad-loan write-offs the inspectors are likely to demand. Today, Mizuho said it wanted to sell 1 trillion yen ($8.3 billion) in preferred stock.

Mizuho is the first of Japan's four largest financial groups to reduce its earnings forecast since October, when the government named a new financial regulation chief, Heizo Takenaka. Rivals like the Sumitomo Mitsui Financial Group and UFJ Holdings may follow suit; each has already announced plans to raise more capital.

But Mizuho is the biggest of all, and may be the most troubled. Its share price has fallen more than half since Mr. Takenaka took office. And its customers have bombarded it with requests for debt waivers and other assistance.

"Given the difficult business environment, concerns remain over possible additional credit costs, and the difficulty Mizuho may experience in quickly achieving its aims," said Yuri Yoshida, a credit analyst at Standard & Poor's.

Mizuho said it had doubled its reserves for expected loan losses to 2 trillion yen ($16.7 billion). Those costs and losses on the bank's stock portfolio are responsible for the loss Mizuho expects for the year.

"The measures will provide maximum financial preparation for further accelerating corporate revival and reduction of nonperforming loans," the bank's president, Terunobu Maeda, said.

In December, the bank announced plans to overhaul its operations as well. Mizuho, formed in April by a merger of Dai-ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan, said it would eliminate another 5,800 jobs, or 20 percent of its work force, by March 2005, closing 118 branches in Japan and 13 subsidiaries overseas.

Even so, Mizuho's fortunes depend on those of its biggest borrowers, like Seibu Department Stores, which said today that it would lay off more than half its workers and close 4 of its 23 stores. Last week, Seibu asked its creditors, including Mizuho, for 230 billion yen ($1.9 billion) in financial aid.

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########## #############################################

1st Source Corporation Announces Year End Results

SOUTH BEND, Ind--1st Source Corporation (Nasdaq:SRCE), parent company of 1st Source Bank, today reported net income of $11.50 million for the year 2002, compared to $38.50 million reported for the year 2001. Diluted net income per common share for 2002 amounted to $0.54 compared to $1.82 diluted net income per common share for 2001.

Net income was $2.43 million for the fourth quarter of 2002, compared to the $9.23 million in net income reported for the fourth quarter of 2001. Diluted net income per common share for the fourth quarter of 2002 amounted to $0.11, a decrease from the $0.44 per common share reported in the fourth quarter of 2001.

The Board of Directors approved a fourth quarter cash dividend of $0.09 per share. The cash dividend is payable on February 14, 2003 to shareholders of record on February 5, 2003, and is equal to the fourth quarter cash dividend in 2001.

Christopher J. Murphy III, Chairman of 1st Source Corporation, commented, "We are very pleased that 1st Source's regional banking system is performing well while we deal with the problems of our Specialty Finance Group. As we have previously reported, our Specialty Finance Group has been negatively impacted by the slowing economy and the events of 9/11. Anyone reading the national press is aware of the challenges of the travel and airline industries. While we do not serve the passenger aviation market, the customers we do serve -- the air cargo industry, aircraft dealers and operators, and the rental car businesses -- have also been hit hard."

"During the year, the operating environment for these industries has become more difficult. The value of aircraft in particular has continued to drop. We spent all of 2002 working with customers, recovering assets, and preparing repossessed assets for sale. We are heartened that 1st Source was able to absorb these losses and end the year with larger loan loss reserves and a stronger capital ratio."

"We are also pleased by the accomplishments of our 1st Source Investment Advisors subsidiary. The strong investment performance and growth in customers of this subsidiary was especially satisfying in such a volatile market. Additionally, a record number of retail mortgages were produced by 1st Source Bank and our mortgage subsidiary, Trustcorp Mortgage Company, although the high rate of refinancings throughout the industry during the year led to write downs in the value of servicing rights in Trustcorp."

Murphy concluded, "2002 was a trying year. We look forward to better times ahead, and the opportunities presented in a challenging business climate."

The provision for loan losses was $8.89 million in the fourth quarter compared to $9.75 million in the third quarter of 2002. 1st Source's reserve for loan losses as of December 31, 2002 was 2.55 percent of total loans, compared to 2.27 percent as of December 31, 2001. Net charge-offs were $8.06 million for the fourth quarter 2002, compared to $7.24 million, $11.22 million, and $11.54 million for the third, second and first quarters of 2002, respectively. The ratio of nonperforming assets to net loans and leases was 2.75 percent on December 31, 2002 compared to 3.26 percent on September 30, 2002.

Noninterest income for the fourth quarter of 2002 was $22.25 million, down 3.2 percent from the fourth quarter of 2001. This decrease was mainly due to a $2.06 million impairment charge on Trustcorp's mortgage servicing rights portfolio and a $1.75 million investment loss, which includes a $1.49 million impairment charge on the securitization retained asset. These were offset by an increase in mortgage revenue of $1.92 million, an increase in deposit fees of $490,000, and a gain on trading securities of $548,000. For the year, noninterest income was $80.03 million, down 14.2 percent from 2001. Significant items affecting comparability between 2001 and 2002 include: an $11.06 million gain on the sale of $1.0 billion of mortgage servicing rights in 2001; a $7.33 million impairment charge on the mortgage servicing rights portfolio in 2002; investment losses of $2.84 million in 2002 (including the $1.49 million impairment charge on the securitization retained asset) versus investment gains of $439,000 in 2001; a $3.81 million increase in trust and deposit fees in 2002 over 2001; and a $548,000 trading securities gain in 2002.

Noninterest expense was $38.96 million for the fourth quarter of 2002, up 17.1 percent from the fourth quarter of 2001. This increase was mainly due to a $4.42 million increase in loan collection and repossession expense and a $1.52 million increase in salaries and employee benefits. For the year, noninterest expense was $138.38 million, up 13.7 percent from 2001. In general, 2002 noninterest expense reflects higher personnel, occupancy and equipment expense, and intangible asset amortization associated with of the acquisition of 17 branches in 2001. In addition, $5.73 million of the increase is due to expenses related to loan collection costs and repossessions.

The 2002 earnings represent a return on average shareholders' equity of 3.71 percent, compared to 13.14 percent for 2001. Return on total assets was 0.33 percent compared to 1.14 percent for 2001.

As of December 31, 2002, the 1st Source common equity-to-assets ratio was 9.12 percent, compared to 8.59 percent a year ago. Shareholders' equity was $310.89 million, up 1.54 percent from $306.19 million a year ago. Total assets at the end of 2002 were $3.41 billion compared to $3.56 billion at the end of 2001. Total deposits were $2.71 billion, down 5.89 percent from the end of 2001, and total loans were $2.33 billion, down 8.25 percent from 2001.

In November 2002, 1st Source Corporation issued an additional $10.0 million of trust preferred securities. These securities, within regulatory limits, will qualify as Tier 1 Capital. 1st Source will use the proceeds for general corporate purposes. The rate is fixed at 6.95 percent until November 2007 and will float at 3.35 percent over 90 day LIBOR thereafter.

1st Source takes pride in its identification as the largest locally owned financial institution headquartered in the Northern Indiana-Southwestern Michigan area. While delivering a comprehensive range of consumer and commercial banking services, 1st Source Bank has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for used private and cargo aircraft, automobiles for leasing and rental agencies, heavy duty trucks, construction and environmental equipment. The corporation includes 63 banking centers in 17 counties, 7 Trustcorp Mortgage offices in Indiana, Ohio and Michigan, and 26 locations nationwide for the 1st Source Bank Specialty Finance Group. With a history dating back to 1863, 1st Source Bank has a tradition of providing superior service to customers while playing a leadership role in the continued development of the communities in which it serves.

Please contact us at shareholder@1stsource.com.

CONTACT:

1st Source Corporation

Larry Lentych, 574/235-2702

Andrea Short, 574/235 2348

Source Corporation

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Profits Up at Wells Fargo Bank

Wells Fargo Reports Record Quarterly and Annual Earnings Per Share

Wells Fargo Financial offers consumer and commercial finance, leasing, private label credit cards and dealer financing in 47 states, Canada, and the Caribbean.

-- Net income up 8 percent in 2002

-- Loans grew 20 percent in 2002

"In a challenging economy, Wells Fargo Financial achieved records in 2002 in both assets and earnings. Earnings for 2002 were a record $360 million, up 8 percent from 2001, and loans increased by $2.8 billion, or 20 percent, over year-end 2001," said Dan Porter, chairman and chief executive officer of Wells Fargo Financial. "This performance validates the strategic moves we have made over the past few years. We remain focused on credit quality."

For more information, go to www.wellsfargo.com

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White House standing by Snow nomination for Treasury job despite revelations of DUI arrest, child-support dispute

By Martin Crutsinger, Associated Press

WASHINGTON (AP) The White House says revelations that John Snow was arrested for drunken driving in 1982 and was involved in a child-support dispute with his ex- wife should not disqualify him from joining President Bush's Cabinet as Treasury secretary.

The Bush administration learned about both issues as part of its vetting process of Snow's nomination, presidential spokesman Ari Fleischer told reporters late Tuesday.

''It's not relevant to his duties. We support him,'' Fleischer said.

Fleischer spoke after the Senate Finance Committee released a questionnaire Snow filled out in which he was asked, among other things, whether he had ever been charged with a criminal offense.

''In 1982 I was arrested for driving under the influence of alcohol in West Valley City, Utah,'' Snow said. ''I was never convicted of that charge and the prosecuting attorney voluntarily dismissed the charge before trial.''

Snow said that in connection with the incident he paid a $334 fine ''for making an unauthorized left turn with my automobile. I have never been charged with or convicted of any other offense.''

In an addendum to the questionnaire, Snow disclosed that his ex-wife, Frederica Wheeler, sued him in Montgomery County, Md., in March 1988, alleging that he failed to pay child support and other costs associated with the care of his two sons.

Snow said he denied the charges, but the court found he failed to pay child support for his son Ian over a 19-month period and failed to pay Ian's transportation and allowance costs at college.

Snow told the committee that he and his ex-wife settled the dispute in January 1991 ''to spare the family the difficulty of a trial.''

Reached late Tuesday night, Snow spokesman Dan Murphy said Snow would not have any further comment.

''This is a personal issue and the White House is the best place for comment,'' Murphy said.

Fleischer noted that the DUI charges had been dismissed. He said in the child- support dispute, the ex-wife's claim was made even though the son had lived with Snow and Snow believed he had fulfilled his obligations under the agreement.

Bush picked Snow, chairman of the CSX Corp. railroad company, last month to replace his first Treasury secretary, Paul O'Neill, who was ousted in a Cabinet shake-up of the administration's economic team.

Snow, who is scheduled to appear for a one-day Senate hearing Jan. 28, had been expected to face tough questioning about Bush's new $674 billion economic stimulus program, which Democrats contend is weighted too heavily toward tax breaks for the wealthy and provides too little immediate support for the struggling economy.

It was unclear how the new revelations might affect the nomination, which had been expected to encounter little opposition.

On Dec. 9, the day Bush announced his nomination, Snow sought to sidestep one possible controversy by announcing that he would resign from the Augusta National Golf Club, the host of the Masters golf tournament which has come under fire for not admitting women.

Snow has also announced that he would forgo a lucrative severance package estimated to total up to $15 million that the CSX board could have awarded him.

Given last year's revelations about corporate accounting scandals, Snow was also expected to face questions next week about his management decisions as the head of CSX, the Richmond, Va.-based railroad that he built into the largest freight line in the Eastern United States.

Some railroad analysts have questioned whether Snow paid too much for its acquisition, in partnership with Norfolk Southern Corp., of Conrail. The two companies divided up Conrail's Northeastern freight routes in a $10.3 billion purchase that closed in June 1999.

Snow, who held several top jobs in the Ford administration, has won widespread praise from business groups and lawmakers for his consensus-building abilities and his skill at dealing with Congress.

Supporters say he will be a capable salesman for the administration's economic program, in contrast to the sharp-spoken O'Neill. At least, he didn’t work

for Enron.

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iNetEvents to Acquire Credit Card Service Company International Card Establishment

iNetEvents, Inc. (OTCBB:IEVT):

-- Company Also Enters into Binding Letter of Intent to Acquire GlobalTech Leasing, Lessor of Electronic Transaction Point-of-Sale Products and Technology

Hardware

-- Combined Companies Currently Generating $10,000,000 in Annualized Revenues and Anticipate Profitability in 2003

iNetEvents, Inc. (OTCBB:IEVT) today announced that it had entered into an agreement to acquire 100% of International Card Establishment, Inc. (I.C.E.), an

Oxnard, California-based card service company that services the electronic transaction needs of merchants nationwide. In addition, the company entered into

a binding Letter of Intent to purchase 100% of GlobalTech Leasing, Inc., which is also headquartered in Oxnard, California.

Following the two acquisitions and a share restructuring, iNetEvents will own 100% of both I.C.E. and GlobalTech Leasing and have approximately 17.6 million

shares outstanding. The current online registration business will continue to operate as a wholly owned subsidiary of the company.

Pursuant to the definitive merger agreement, iNetEvents will issue a total of 14 million shares of its common shares to acquire 100% of I.C.E., following

which the company's issued and outstanding stock will be consolidated on the basis of one new share for each two old shares of iNetEvents. Then, the company will proceed with the acquisition of GlobalTech Leasing via the issuance of 5 million post-consolidation shares of iNetEvents. The company's name will be changed to International Card Establishment, Inc. to reflect the company's new core business.

"We are extremely pleased to have attracted merger partners such as I.C.E. and GlobalTech Leasing," said Brandon Stauber, President and CEO, iNetEvents. "I

am confident that I.C.E. founder and President Jonathan Severn, who will become our company's new President, will, in conjunction with GlobalTech CEO Chuck

Salyer, grow the two companies substantially over the next year and beyond. We expect a meaningful appreciation in shareholder value to result from this merger."

"Chuck and I are looking forward to accelerating the growth of both I.C.E. and GlobalTech Leasing now that we are public," said Jonathan Severn, Founder and President of I.C.E. and Founder and Major Shareholder, GlobalTech Leasing. "We see multiple acquisition opportunities in both the card service and leasing businesses that would add substantially to revenues, and by leveraging our

existing operations capacity, increase our bottom-line immediately. Moreover, as a public company we should be able to finance our growth by accessing public

equity markets," added Mr. Severn.

About I.C.E. and Jonathan Severn

Newly formed in 2002, I.C.E. began operations on October 1, 2002, providing credit card and electronic transaction services to merchants in the Southern California market. I.C.E. expects to report approximately $300,000 in revenues for its three months of operations in 2002.

Mr. Severn brings 15 years of sales experience to our company. For the past 11 years he has owned and operated one of the largest Cardservice International Agencies in the country. Cardservice International was the largest privately held Visa MasterCard acquirer until January 2002 when First Data Corp. (FDC) purchased the remaining 50% of Cardservice International that it did not own.

Mr. Severn is also founder and major shareholder in GlobalTech Leasing, Inc.

About GlobalTech Leasing and Charles Salyer

GlobalTech Leasing offers micro-ticket leasing to the "point of sale" industry.

The company focuses on personalized customer service for Independent Selling Organizations (ISOs) and agents. GlobalTech was formed in 1996 and incorporated in 2000. The company expects to report approximately $8,000,000 in revenues for the year ended December 31, 2002, and profitability.

Mr. Salyer's professional experience includes over 26 years in the equipment leasing industry with a primary focus on developing and managing customer service-based finance organizations for manufacturers. Mr. Salyer has been directly involved in the planning, creation and management of customer finance/leasing organizations for Digital Equipment Corporation, Philip Morris, and Steelcase, Inc. Mr. Salyer became involved in the credit card equipment leasing industry in 1997 when appointed COO of Global Finance & Leasing in Michigan. Mr. Salyer took over management of Global as President in 1998,

tripling sales revenues over the next two years. In 2001 Mr. Salyer organized the sale of Global Finance & Leasing to CIT, where he became part of the management team as Vice President, Sales & Strategic Initiatives. In August of 2001 he left to form GlobalTech Leasing, Inc. with Jonathan Severn.

About iNetEvents, Inc.

iNetEvents, Inc., based in Los Angeles, CA (http://www.inetevents.com/), specializes in providing a range of technology services to the event management

industry. It provides an integrated Web-based event management solution that allows its customers to use the Internet to better promote and administer their events. The appeal of this event management application lies in its ability to enhance the event's outreach capabilities; reduce administrative burden; improve the attendee, sponsor and exhibitor experience; and generate additional revenue streams.

CONTACT:

WPH Consultants, Ltd.

Philippe Niemetz, toll-free: 800/477-7570

212/344-6464

wphconsultants@msn.com

( courtesy of ELAonline.com )

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Niners get permission to talk to top Eagles' assistants

ESPN.com news services

The 49ers have received permission to talk to three coordinators concerning their vacant head coaching position, general manager Terry Donahue said Tuesday in a conference call with reporters.. While former Minnesota Dennis Green has been mentioned, he toldESPN he has not been contacted by anyone at the 49ers.

The Niners can talk to Eagles offensive coordinator Brad Childress, Eagles defensive coordinator Jim Johnson and Patriots defensive chief Romeo Crennel.

Jets defensive coordinator Ted Cottrell and ex-Vikings head coach Dennis Green are also on the list of possible candidates, Donahue said, but neither has been contacted by the team.

Crennel, Cottrell and Green are African-American candidates and would put the 49ers in compliance with the NFL directive to consider minority candidates if they are interviewed.

The Niners are interviewing their own defensive coordinator, Jim Mora Jr., today. Mora is the only current staff member who is scheduled to be interviewed.

(The 49er fans often yell his name in vain during the game, as he is very

late in making changes to defense calls, even fans know the plays he is

going to call as does the opposing team. editor)

Donahue said he expects to interview about six candidates for the job to replace Steve Mariucci as head coach. He expects the process to take about two weeks. Mariucci was fired last week after leading the Niners to the divisional round of the playoffs.

Green told ESPN Gamenight on ESPN Radio that he had not been contacted by the 49ers about their head-coaching job Monday.

"I haven't heard anything from the 49ers, so I am assuming they are going into another direction," Green said. "And I think this would be a great job for me. But if management doesn't believe that, then there isn't anything I can do."

ESPN's Chris Mortensen says that sources with the 49ers tell him that 49ers consultant Walsh has pushed for Green, but that owner John York and GM Terry Donahue are not considering Green. Mortensen says the sources say the process to replace the fired Steve Mariucci could take two more weeks.

Walsh told USA Today in Tuesday's editions that he's not considering a return to the 49ers' sideline.

"You know, I could do a better job today than ever before," Walsh told the newspaper. "I just couldn't handle the eight months (grind)."

( Whether you like the “Mooch” or not, he was certainly let go in a very

unfair, poor, and not “San Francisco Way.” Eddie DeBartlo would have

never have handled it so poorly as John York did. editor )