Wednesday, July 26, 2006
Headlines--- It's Hot ######## surrounding the article denotes it is a “press release”
----------------------------------------------------------------- It's Hot
108 to 110 degrees here in Los Gatos, Saratoga, the last four days; too hot in the full sun to even get in the swimming pool to cool off. We're at the base of the Santa Cruz Mountain so no breeze from the bay and any coastal wind blow right over us. It has been “Electricity stage two,” with power shortages, sending employees home from companies, not just because of lack of air conditioning, but no computers. Some have been without power for over 26 hours. Stage three is rolling blackouts, which hit some parts of the San Jose yesterday. We had several “brown outs,” with the computer battery back-ups working on most computers. Many reports all over the San Francisco Bay Area that electric fans all sold out. In living here over thirty-five years, I have never seen such high temperatures for so many days. In writing “This Day in American History,” this period is going down in “Weather history” as all high temperature records here have been broken. It was cooler yesterday, if you call 104 “cool.” Work outside the office has slowed down considerably or is non-existent in various industries, such as construction; didn't see anyone working on homes or other projects, including the highways. Other parts of the country reportedly are having more serious problems, so I guess we should not complain. Kit -------------------------------------------------------------- Classified Ads---Operations
La Dolce Vita Winery, Restaurant, and Bed & Breakfast, Washington, Missouri Orange County, CA East Windsor, NJ New York, NY Wayne, NJ For a full listing of all “job wanted” ads, please go to: To place a free “job wanted” ad, please go to:
“In 2002 we opened our first tasting room in Downtown Washington. Today our facility is located in the 1846 Zachariah Foss House which overlooks the Missouri River and the Riverfront Park. La Dolce Vita produced wines are featured along with numerous domestic and international selections. Our restaurant offers gourmet sandwiches, soups and salads. The restaurant terrace seating offer terrific views of the Missouri River. A two bedroom Bed & Breakfast is located on the third floor.” http://www.ladolcevitawinery.com/ -------------------------------------------------------------- Balboa Capital, Irvine, California
by Christopher Menkin, editor A draft of this “complaint” was sent to all parties, requesting corrections and/or comments. Leasing News here includes e-mail from Balboa Capital CEO and co-founder Patrick Byrne from the first complaint. Actually the first Balboa Capital complaint received regarding "Evergreen clauses" was July 6, 2005 from Kandy Wang, General Manager of Eagle Bag Corporation in Oakland, California. It now becomes II and III. During this time, she had been speaking with Citicorp, Balboa, and Leasing News regarding the lack of residual, the blanket lien and "interest rate." She had never heard of an “Evergreen” lease and was told by the Balboa company salesman her company would own the equipment at the end of the lease. She speaks with a heavy Asian accent and discussed the inability to fully understand the contract, relying primarily on what the Balboa salesman told her, and appeared quite embarrassed about her communication skills. She also mentioned the small type size of the contract, as John Byk did in the Reche Canyon equipment lease. She definitely appeared embarrassed as to understanding what had happen. Her complaint went into "Limbo." As it turned out, she eventually told us she was more worried about the second lease and its residual, specifically terminating it in time. Both leases had been assigned to American Equipment Leasing in Reading, Pennsylvania, who's company was eventually purchased by Citicapital, where she was making the payments. In the course of learning the attorney and estimated court costs and other fees in the first Balboa Capital lease, she “settled” the first “Evergreen lease,” paying a purchase option, rent, penalties, late charges, and had trouble coming up with all the money, too, she said, as it was not expected. She realized such leases were legal in California. She believed it was a communication problem and accepted the responsibility to what had occurred. She also told us it was her goal not to let this happen to the second lease. She told Balboa Capital verbally, sent an e-mail and fax, thinking she was meeting the contract provisions. She did not want to renew the lease, but wanted to terminate it. She did not want to make the same mistake that was evidently made in the first one, she told Leasing News. The response from Balboa Capital was continued invoicing for payments. Finally, over the telephone (not in writing) that “the attorney told me they only accepted a certified letter” and therefore she owed the additional payments. From Kandy Wang to Leasing News: "Here is the support documentation and the lease contract. I fax it on the Nov.9 and mail the copy on the same date (forgot to certify it), but obviously they would not accept the fax copy and deny receiving the letter. So they keep sending me the bill by ignoring my emails for return instruction. I had sent two emails to their legal on the 29th of June (as follow.)”
There may be some other aspects in reference to the first lease that may affect the second lease, but Balboa Capital appears not to be issuing any formal statements to Leasing News on the "Evergreen clause" issue, except for what we printed, " “Everything I see with regards to this transaction is above board...standard operating procedure...We can debate evergreen all day but its existence in the marketplace is fairly standard to some level." Most likely is more to the story, and Leasing News would like to print it, according to internet netiquette and our published policy. We have requested Balboa Capital to provide any information that would like to share. A copy of the lease in the third complaint may be seen at the bottom, but to better understand this, the first complaint sent in by Kandy Wang may illustrate what happened. It states with e-mail between Leasing News and Patrick Byrne, CEO, of Balboa Capital ((note: none of the correspondence was "off the record, nor were there any "one sided" statements that the e-mail was "confidential." (This is another issue about a bi-lateral agreement with a news publication, but our position is anything is "on the record,” unless both parties in advance agree that it is "off the record." These e-mails were not “off the record.”)) On August 8, 2005 , Leasing News sent an e-mail to Patrick Byrne: "You can read what I told this head of Eagle Bag, Oakland, California "She basically did not understand what he was signing, and admits that responsibility, and now understands that it was her responsibility to what she signed. "If there is a way that Leasing News can negotiate a better 'payoff" or work out a more favorable solution to this, it would be appreciated by Ms. Wang particularly." Byrne, July 10th , 2005 : "This was a tough deal. Here are some notes from the file. "-Time in business at the inception of the lease was only 4 years "The deal was declined at every debt source we presented to including ******* *********... "Having said all that, we are not pleased that we have an unhappy customer and we would be more than happy to extend a "Leasing News" discount. "Let me know if you require any additional information and thanks for your help on this Kit, Pat Byrne, July 11th , 2005 : (After receiving an e-mail from Leasing News acknowledging his involvement.) "...We will work it out with Ms. Wang. "Thanks," Pat Byrne, July 16th , 2005 (After receiving an e-mail from Leasing News that nothing had happened to date) "Two people in our portfolio management department had overlapping vacations and we dropped the ball. No excuses though, we should have managed this better. "Ms. Wang, our contact at Eagle Bag will receive a generous offer from us before day's end. "Kind regards," Pat Copy of e-mail, July 17th , 2005 "Hello Ms. Wang- In order to resolve this matter in an amicable manner, Balboa Capital has carefully reviewed the above referenced lease agreement. The lease is currently eight months delinquent. If funds are received with five business days, Balboa is prepared to accept four of the eight renewal payments due on the lease and you will have the option to (1) purchase the equipment or (2) return the equipment to Balboa Capital. We will also waive the late charges. "The equipment was valued by at third party, Nassau Asset Management. The Fair Market Value for the purchase of the equipment is $20,110.00 plus applicable sales tax. "If you wish to purchase the equipment please send a check for a total of $37,152 ($20,110 buyout, $1,759 tax, $15,283 four renewal payments). Upon receipt of good funds, Balboa Capital Corporation will forward a bill of sale which will pass all title, rights, and interest in the equipment. "If you do not wish to purchase the equipment please send in a check for the four renewal payment of $15,283. Upon receipt of payment, we will then forward you the return instructions for the equipment. I look forward to hearing from you by August 23. "Please feel free to contact me with any questions you may have. "********** Balboa Capital Corporation 949.399.6320 Direct This was the same offer made the first time to Ms. Wang, no change. Byrne, e-mail response, July 17th , 2005 : "The offer provides for a discount of $15,283 in payments and $4,585 in late fees for a total discount of $19,868. In my world, this is generous. "The offer provides for a discount of $15,283 in payments and $4,585 in late fees for a total discount of $19,868. In my world, this is generous." Pat Byrne, e-mail response, July 17th , 2005: "This is the first time any discount has been offered so I would think they would be ecstatic with a $19,868 reduction, not to mention using the equipment rent free for eight months. "I feel I have done everything I can do on this and, if you don't mind, I am going to pass this back to *********. "Sorry, we were not all able to wrap this up and move on." Pat Kandy Wang, July 18th , 2005 : "I really don't know what to say but thank you for all your hard work on our case. We are now consulting with attorney and will let you know next day or two. BTW, the machines are here and we don't intend to keep them for that market value they had appraised. Those are all in good working condition and here in my plant. Thanks. Kandy" Again, Leasing News requested a statement or comment from Balboa Capital, but to date has not received one. The role of Leasing News is to see if a complaint can be resolved between the parties. When it cannot, the next step is to consider if it is a legitimate complaint for the Leasing News bulletin board. Leasing News does not state who is right or who is wrong, but tries to present both sides fairly and leaves the matter for each reader to decide the merits of the complaint. American Equipment Lease (Citicorp) American Equipment Lease, (Citicorp) Reche Canyon Equipment Complaint (Wells Fargo Leasing) Readers on Evergreen leases -------------------------------------------------------------- Leasing Association Events-Meetings Open to All
UAEL Pacific Regional Event Oregon Region's Cocktail Today, Wednesday, July 26th, 2006 Ram Big Horn Brewing Co. Situated on the bank of the Willamette River, this is a wonderful location and format to attend after work with an opportunity spend time with other lessors/brokers and funding sources. As the Oregong Region has continue to remain strong with many loyal and active members, this event will definitely be a great opportunity you will not want to miss. No cost to attend Please contact Kim at the UAEL office for more information. -------------------------------------------------------------------------------
August 3, 2006 EAEL's Day at the Races Great Networking in an Executive Suite with luncheon buffet, open bar and fabulous Thoroughbred ricing. For registration information, please contact the EAEL office at 212.809.1602 or alison@eael.org ------------------------------------------------------------------ August 8, 2006 Phoenix Arizona Networking and… The Arizona Equipment Leasing Association invites you to join us for a networking session with selected funders and your peers followed by an evening of Baseball with the Arizona Diamondbacks. Meeting and Networking: Sam’s Café Southwestern Grill · Arizona Center Followed by: Arizona Diamondbacks vs. the San Francisco Giants We need your early reservation and payment to get the correct ticket count for the game!!!. Fee: $20 payable by July 11, 2006. Price includes, networking with funders, heavy hors deurves, drink ticket and game ticket. RSVP/Registration form to Steve AmRhein..samrhein@leaseplans.com.. Name ------------------------------------------------------------------
August 14, 2006 EAEL Golf outing Hosted by Jim Jenco and Robert Ingram. For registration information, please contact the EAEL office at 212.809.1602 or alison@eael.org ------------------------------------------------------------------
August 17th Rock Spring Country Club To register or learn more, please go here: ----------------------------------------------------------------------
Wyndham Orange County Hotel To learn more, please call: Registration form: ----------------------------------------------------------------------------
Renaissance Concourse Hotel
---------------------------------------------------------------- Classified Ads---Help Wanted Account Managers
Sales
Sales Manager
---------------------------------------------------------------- Top Stories--July 17-21
Here are the top ten stories most "opened" by readers last week. (1) Bulletin Board Complaint (2) Readers on “Evergreen Leases” (3) Gerry Egan on “Evergreen Leases” ( There was actually part II, and well-read, as it had two great photographs: ) (4) Evergreen Lease laws (5) Tiger Leasing joins “Broker/Lessor” list (6) Why I Became a CLP (7) NorVergence---FTC Shoe to Follow (8) ICON Fund Congratulations : to Become Largest Public Equipment Leasing Fund (9) Sales make it Happen-By Terry Winders, CLP (10) Pictures from the Past-- 1994-Bill Graneri Three Extra Editions (sent to those on our e-mailing list) (very high "open," but not counted in the top ten as statistics not known in comparison to web site statistics.) If you are not on the mailing list, you didn't ICON Fund to Become Largest Public Equipment Leasing Fund NorVergence Bankruptcy Trustee Sues 26 Banks/Officers FASB/IASB Meeting News To join the mailing list, put “join” in the subject line and
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---------------------------------------------------------------- California Law may impact other states, equipment next? OVLA Lessor The Ohio Vehicle Leasing Association OVLA members who sell or lease vehicles to Californian need to be aware that the California Car Buyer's Bill of Rights (AB 68) impacts them. Information on the law that went into effect July 1 can be obtained by emailing The OVLA. Similar legislation pending in Arkansas, Louisiana, New York, North Carolina, and Massachusetts. One area where the law impacts those leasing to Californians is in credit. Dealers were not required to tell prospective customers about their credit scores prior to July 1, however this changed under the new law. Those who obtain scores from credit reporting agencies must provide, prior to sale or lease, a separate written notice that reveals the credit score obtained and used by the dealer, the name of the credit reporting agency that provided the score, and the range of possible credit scores. The notice must contain specified language that describes the significance of credit scores. The new law does not require dealers to tell consumers the lowest interest rate for which they qualify. Nor is there a requirement to disclose the buy rate or amount of finance reserve. A separate form must be provided that describes and states the price of any service contract, insurance product, GAP waiver, surface protection product, theft deterrent device and contract cancellation ption agreement. On used vehicle sales, a dealer must offer a three-day contract cancellation option with the retail sale f a vehicle with a purchase price of less than $40,000, in exchange for a fee of up to $250. Dealer finance income will be limited to 2.5 percent for contracts of 60 months or less and 2 percent for contracts more than 60 months. Lessors should consult with legal counsel to insure they are in compliance with California law.
---------------------------------------------------------------- Housing starts fall, but market "solid" despite inventory by Al Schuler US Department of Agriculture Before the recent news of the highest mortgage rates in four years, June housing starts fell 5.3% to 1.85 million (SAAR). Single family starts were down 6.5% to 1.486 million (SAAR). Most regions pulled back – the NE was down 11.5%; the South down 4%; West down 10.2%; while the Midwest was up 3%. Permits, a good indicator of what may happen in the next two to three months, also fell, down 4.3%.
Analysis and outlook: The housing market is slowing down as indicated by many signals: the 30 year fixed rate mortgage averaged 6.74% for the week ending July 17th; the PPI is running at a 4.8% rate YOY ( year over year); and the CPI is at a 4.3% YOY rate with the core CPI at 2.7% YOY. Interestingly, the core CPI for the past three months has averaged 3.6% so it is picking up steam. We mentioned home prices in last months note - - prices are too high in 71 cities (http://www.globalinsight.com/ ). And, inventories are piling up for both new and existing homes. The inventory for both existing single family homes and new homes is now at 6 months (7.5 months for condos). So, there is some concern of overbuilding which could push prices down even more. This will be more of a problem on the East coast (including Florida's' condo market) and the West coast – California, Pacific Northwest, and the Mountain West ( Nevada, Colorado, Arizona). This is good for buyers, but not for all those homeowners who are still trying to cash in some of their homeowner equity. This is one of the reasons why the Fed is now saying they feel the economy is slowing down (“economic moderation is underway and inflation remains contained”). Even so, the increasing pace of core CPI inflation means the Fed tightening may not be over yet. And, we are hearing more about yield curve inversions - - this happens when short term rates are higher than long term rates. This now exists for some securities and is being caused by the Fed raising short term rates while inflation concerns, which have a bigger impact long term rates, remain muted to some degree due to globalization trends (increased worldwide competition). The reason for the concern is that with an inversion, there is less incentive for lenders to lend (banks make money by lending long and borrowing short), so credit starts to dry up and we all know what happens to spending when credit tightens. In the past, recessions were often the result (but not always). So far, the inversion is slight, so not a problem yet, but if the inversion continue to increase, we could see more slowing of the economy.
Summary: As I mentioned in last month' note, this is still a solid housing market that is simply correcting to more sustainable levels (i.e., based on demographics). Some single family demand will be replaced by stronger multi family (rental) demand. Multi family starts were flat this month, but permits were up 2%. This “correction” and rebalancing is good for the market because if it were delayed for another year, the pullback would only be more severe. There is one lingering concern with most analysts - - future direction for energy prices. With oil over $70/barrel, energy costs including utility charges will continue to crimp consumer spending for non energy items including housing. Courtesy of: Carl Villella, CLP Airport Corporate Centre ---------------------------------------------------------------- Small leases, big profits? A Golden Valley investor hopes his small-equipment franchises take off. BY SHERYL JEAN Pioneer Press Can a company best known for selling used sports equipment find success providing financing to small businesses? That's the question facing Golden Valley-based Winmark Corp., franchisor of the retail stores Play It Again Sports, Once Upon a Child, Plato's Closet and Music Go Round. Those franchises generated $460 million in sales in 2005. But Winmark CEO John Morgan has been looking for a way to marry the company's branding expertise with his decades of experience in equipment leasing. So two years ago, Wirth Business Credit was born. Its franchises help small businesses lease all sorts of equipment, from computers to forklifts. Sean Faras, a former truck salesman from St. Louis Park, became the first franchise owner in April, after his brother-in-law Matt Brzica put up $100,000 in startup costs. Despite his lack of financing experience, the lure of operating a franchise was strong. "It gave me an ownership stake in the business and I don't have to go to a manager to tell me what to do," said Faras, 36. Equipment leasing franchises are an unproven concept. Wirth is one of only two such businesses in the country (the other is part of Volvo, the Swedish truck and equipment maker). Since Wirth began offering franchises last fall, two other franchise units have opened in Dallas and San Diego. Company officials hope to have up to 15 franchises by the end of the year and as many as 100 eventually. Though Faras says he understands the risks, some industry experts are skeptical about Wirth. "Credit is a difficult thing to franchise. You really have to know credit to be in that position," said Credit Suisse financial analyst Moshe Orenbuch, who follows large equipment-leasing companies. "Running a leasing company is a complicated, competitive business," said Michael Fleming, president of the Equipment Leasing Association in Arlington, Va. "It's not the kind of thing that people would enter into without a tremendous amount of experience and capital." But Morgan's background makes others a bit more comfortable about the new venture. Morgan, 65, has dabbled in equipment leasing since the 1960s. In 1982, he co-founded Winthrop Resources Corp., a Minnetonka equipment leasing company he sold 15 years later to Wayzata-based TCF Financial Corp. for $326 million. He invested in publicly traded Winmark (formerly Grow Biz International) in 1999 and now is its largest shareholder. Winmark posted net profits of $2.1 million on revenue of $26.6 million in 2005. He started Wirth soon after a non-compete agreement with TCF expired. Morgan sees opportunity in so-called small-ticket leasing — for goods valued at $250,000 or less — with growing demand from small businesses and no dominant equipment-leasing brand. Small-ticket leasing accounts for about $60 billion of the equipment-leasing industry's estimated $229 billion in industry revenue. A lease is similar to a loan. Customers make payments at a fixed interest rate for two to four years. But businesses often choose leasing over a loan because it preserves cash flow, requires no down payment or other collateral and has tax advantages. Customers typically can buy the equipment for $1 at the end of the lease. Wirth's average lease is about $25,000. Interest rates tend to be high because leasing is short-term and borrowers can be higher risk. Wirth charges around 9 percent to 14 percent today compared to a bank prime-lending rate of 8.25 percent, Morgan said. Winmark and its franchise owners earn a profit by building fees into the interest rate, much like points that are added to a home mortgage loan. North Carolina-based Volvo Rents faced some skepticism when it began franchising construction-equipment leasing in 2001, but that faded as the company grew, said Nick Mavrick, vice president of global strategy and marketing. Volvo Rents has about $250 million in assets and 150 franchise units worldwide, but doesn't compete directly against Wirth since its leases are very short-term — usually several weeks — and it leases only construction equipment. The equipment-leasing arena includes big players such as GE Capital and U.S. Bank, but independent companies and thousands of brokers dominate the small-ticket leasing corner. Michael Shay, president of the International Franchise Association, said franchising can be an advantage in a fragmented industry. "Franchises use centralized operations, brand identity, business systems and advertising to achieve greater penetration of the marketplace," he said. Wirth President Mark Hooley said the company stands out from rivals because of its local presence, its automated leasing system that provides approvals in four hours or less, and the ability to finance up to 100 percent of equipment value. Wirth franchise owners pay an average of $60,000 to do business in a certain geographic area, including franchise, computer and marketing fees. In exchange, the company provides the brand, the business model, cash for leases, training, marketing and the collection of overdue leases. Wirth hasn't generated much revenue yet, and Morgan acknowledged that the company's short track record makes it hard to attract potential franchisees. "Give us a year," he said. "We understand franchisees." Wirth looks for potential franchisees with a strong business and sales background; leasing experience is not required. Faras, for example, was in sales for 10 years before he joined Wirth. In the late 1990s, he maxed out his credit cards to finance a furniture import company. That background helps him understand the needs of small-business owners, he said. One of his customers, Vance Trendov, needed six new lawn mowers to keep up with demand for his two-year-old business, Trust Lawn Care in Eden Prairie. "I'm 21 … I have no credit history," Trendov said. "When other companies turned me down, Sean (Faras) said he'd help me." "Financing can be complicated and challenging," Faras said. "But my part of the business is really about sales. You have to already understand sales."
---------------------------------------------------------------- Japan lease firms hit by accounting change report http://asia.news.yahoo.com/060721/3/2nfle.html --------------------------------------------------------------- Lease Accounting Overhaul Likely a Hot Topic at Equipment leasing professionals to meet at the Ritz-Carlton in Atlanta August 30-31. Atlanta, GA -- On August 30 at the Ritz-Carlton, Buckhead hotel in Atlanta, the Lessors Network will open the Annual Lessor Resources Showcase. The event showcases funding sources, technology solutions and service providers exclusively active in the commercial and municipal equipment leasing markets. This year's event features the largest number of scheduled presentations and roundtable discussions on topical subjects; however, insiders are wondering if the hot topic will be FASB's recent announcement to overhaul leasing accounting policies. “It's unlikely to have this many senior industry executives in one room and not have this be a primary topic of conversation,” said John Semon, CEO and founder of the Lessors Network. “We have built our reputation on delivering smaller, professionally intimate networking events where each and every attendee is a proactive participant. Anytime a hot topic such as proposed changes to our accounting policies comes across our radar, we can expect our attending executives to engage in vigorous discussion, sharing their ideas and opinions. This event is made for just such opportunities.” Past participants include Bank of America; Caterpillar Financial Services Corp.; Chase Equipment Leasing; CIT; Citigroup, Inc.; Daimler Chrysler; De Lage Landen; Decision Systems, Inc.; Dell Financial Services; Deutsche Financial Services; Diligenz, Inc.; ePlus Group, Inc.; Experian; Fair; Isaac and Company; Fitch Ratings; GATX Capital; GE Capital; GMAC Commercial Finance; IBM Global Financing; Information Leasing Corp.; International Decision Systems; John Deere Credit; Key Equipment Finance Group; KPMG Consulting LLC; Oracle Credit Corporation; Pitney Bowes Financial Services; RVI Group; SAP America; Siemens Financial Services; Textron Financial Corporation; Toyota Financial Services; UCC Direct Services; US Bancorp; Wachovia Leasing & Equipment Finance and Wells Fargo Equipment Finance. Additional information about the Annual Lessor Resources Showcase can be viewed from www.lessors.com. ABOUT THE LESSORS NETWORK From www.Lessors.com, the Lessors Network is a global vertical marketing network connecting participating small, medium, and large companies and their employees across the equipment leasing enterprise through a common content and interactive platform. ### Press Release ########################### CIT Announces Appointment of George Cashman as President of CIT Rail Resources NEW YORK, -- CIT Group Inc. (Nachrichten), a leading global provider of commercial and consumer finance solutions, today announced the appointment of George Cashman as president of CIT Rail Resources. Effective August 1, 2006 Cashman, who previously served as Chief Sales Officer of the Group, will be responsible for the management of CIT Rail Resources' railcar and locomotive portfolios. He succeeds Steve McClure who will join the executive staff of CIT's vice chairman for Commercial Finance Rick Wolfert. McClure will assist in a variety of strategic and business development activities until his retirement in early 2007. Wolfert commented, "I am very pleased to announce George's appointment as President of CIT Rail Resources. This is well deserved for George, whose contributions and depth of experience in the rail and leasing business spans more than 25 years. His promotion serves as a natural transition for the Group which has experienced significant growth. George's leadership will ensure the continued advancement of the Group's strategic business development initiatives which are important components of CIT's corporate growth strategy. "After serving CIT for nearly a third of a century, I want to thank Steve for his significant contributions," Wolfert continued. "Under his leadership CIT Rail Resources has grown from a fleet of a few thousand railcars to more than 85,000 owned and managed freight and tank cars and locomotives. We are grateful for his contributions and appreciate his continued service to CIT." Cashman joined CIT Rail Resources in January 2000 as senior vice president with responsibility for mechanical and financial operations, pricing, structuring and contract administration. Most recently he served as executive vice president and Chief Sales Officer of CIT Rail Resources. Prior to CIT, he served as executive vice president of Westinghouse Financial Services in charge of the Leasing, Transportation and Project Finance businesses units. About CIT Rail Resources CIT Rail Resources provides a wide array of equipment leasing and financial products to the rail industry and owns and manages a fleet in excess of 85,000 railcars and approximately 550 locomotives. As one of the leading railcar and locomotive lessors in North America, CIT Rail Resources serves customers in the U.S., Canada and Mexico and is the largest operating lessor of 286,000-pound capacity railcars in North America. http://www.citrail.com/ About CIT CIT Group Inc. , a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has $68 billion in managed assets and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries worldwide. CIT, a Fortune 500 company and a member of the S&P 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. With its global headquarters in New York City, CIT has more than 7,000 employees in locations throughout North America, Europe, Latin America, and the Pacific Rim. http://www.cit.com/ ### Press Release ########################### Sterling Financial Corporation of Lancaster, Pa., Announces Record Earnings LANCASTER, Pa., -- Sterling Financial Corporation (Nasdaq: SLFI) reported record earnings for the quarter and six months ended June 30, 2006. "We delivered another quarter of solid performance," said J. Roger Moyer, Jr., president and chief executive officer of Sterling Financial Corporation. "While we have experienced some modest compression in our net interest margin, our company is well positioned to meet a challenging interest rate environment as we continue to focus on revenue growth by delivering a broad portfolio of complementary financial services through our banks and financial services group companies." Results of Operations Quarter Ended June 30, 2006 Sterling's net income was $10.3 million for the quarter ended June 30, 2006, an increase of $597,000, or 6.2 percent from the second quarter of 2005. Diluted earnings per share totaled $0.35 for the second quarter of 2006 versus $0.33 for the same period in 2005, an increase of 6.1 percent. Return on assets for the second quarter of 2006 was 1.37 percent as compared to 1.39 percent for the same period last year, while return on average realized equity and return on average tangible equity were 13.71 percent and 20.55 percent, respectively for the second quarter of 2006 as compared to 14.00 percent and 21.10 percent, respectively for the same period last year. Total revenue, comprised of net interest income and non-interest income excluding net gains on sale of securities, totaled $48.5 million for the second quarter of 2006, an increase of $3.1 million or 6.9 percent from the same period last year. Meanwhile, non-interest expense totaling $32.8 million for the second quarter of 2006 increased $2.0 million or 6.6 percent from the second quarter of 2005. As a result, the efficiency ratio improved from 60.86 percent for the three months ended June 30, 2005, to 60.45 percent for the second quarter of 2006. Full press release here: ### Press Release ###########################
News Briefs----
ABS market does $2.4 billion Paccar posts most profitable quarter, but sales outlook downshifted Consumer Could Be Drag on Bank Earnings Q2 2006 Venture Capital Investing Reaches Highest Level since 2002 at $6.3 Billion Bernanke's financial disclosure reveals a no-frills millionaire Foreclosure filings in Mass. jump 66% Thanks to its CEO, UPS doesn't just deliver ---------------------------------------------------------------
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Sports Briefs---- Why not? Raiders set their expectations high New pro football league to start up on college campuses ----------------------------------------------------------------
California News Briefs--- California sets third power use record; hundreds of transformers fail Budget, ads give governor poll boost ----------------------------------------------------------------
“Gimme that Wine” Wine Cruises (on board the top luxury ship, smooth, great food-service, can personally testify—Kit) Richard Arrowood Announces Plans to Remain at Arrowood Winery as Part of the Bid to Purchase Legacy Estates Made by the Huneeus Family and Bill Price New York wine industry Wine Prices by vintage US/International Wine Events Winery Atlas Leasing News Wine & Spirits Page ----------------------------------------------------------------
Calendar Events This Day Cuba: National Day. Anniversary of Revolution. Curacao: Curacao Day. Liberia: Independence Day. Maldives: Independence Day. New York Ratification Day . July 26, 1788. ----------------------------------------------------------------
Today's Top Event in History 1863- Confederate General John Hunt Morgan was ordered to invade Kentucky He was to direct and draw General William S. Rosecrans' army from Tennessee. But Morgan went farther than he was ordered. He led a group of volunteer cavalrymen, raiding public property, burning bridges, taking horse, and captured railroad supplies. They also caused severed losses among the Union Troops and Morgan Raiders were feared wherever they went. While he never commanded more than 4,000 men, it is said he captured as many as 15,000 Union soldiers. He was a maverick. He had not followed orders and began harassing (some say plundering homes, others say they were Union sympathizer's homes) in Tennessee and Ohio, going in the opposite direction, actually into “enemy territory. “He was captured this day with 364 of his men at New Lisbon, Ohio. He had broken through the federal lines in Kentucky and crossed the Ohio River into Indiana. Used to lighting raids and use of his cavalry, a flood caused the river to rise. He could not find a way to return to Confederate territory. He was imprisoned in the Columbus, Ohio Penitentiary. It did not hold him long. He escaped the next November, continuing his many his raids. He finally made it to Kentucky, in June, 1864, where Union troops were no very strong. He was caught and defeated, but with his fast Calvary, out ran the Union troops, and regrouped. He then went to Greenville, Tennessee, which now was also in Union hands, where he was killed in battle, September, 1864. ----------------------------------------------------------------
This Day in American History 1603- James VI of Scotland was crowned King James I of England. He then 'authorized' an English translation of the Scriptures, first published in 1611 and known since as the' King James Version' of the Bible. It brought more interest in “religious freedom.” His reign brough Europeans to the new world, where less than 10% of the native population survived, once they had started to settle the new land. In 1600, the Indian population of what was to become the U.S. was about 1,000,000 when European exploration began. They were tall, healthy, hunters, farmers, had wooden houses and large leather teepees. In the beginning, some of the earliest pioneers, as at Jamestown, VA were adventurers, interested more in making a quick fortune form the alleged riches of the New World than in engaging in agriculture or forestry. In later years, through a greater diversity of settlers arrived, and brought with them a variety of skills. They ranged form wealthy Englishmen, who wanted to carve out large estates, to servants. Merchants saw the opportunity for trade as populations grew. Groups seeking religious freedom were also prominent, bringing with them a tradition of had work and a willingness to start anew (an example of the social position of the first settlers comes from the fact that among the male settlers of Jamestown, VA., the first permanent English settlement in America, of the 105 men, 35 were considered gentlemen, persons who means freed them from the need to work or engage actively in trade. The second expedition to Jamestown contained 33 gentlemen out of 120. --------------------------------------------------------------
Baseball Poem Gaylord I have a friend that calls it the good ole boys I heard Dietz said that required a windshield. the denial itself is legendary, and later the country drawl, Written by Tim Peeler --------------------------------------------------------------
SuDoku 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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