Tuesday, March 14, 2006
Headlines--- Welcome New Readers ######## surrounding the article denotes it is a “press release”
Welcome New Readers
While most who read Leasing News go to the web site first, many still join our mailing list. Our goal is to print daily from Monday to Friday, but most often it is only three or four times a week, so when you are on the mailing list, you are informed that the new edition is available. We go to “press” when we think there is enough equipment leasing news to do so. Readers on our mailing list also get notices of major events from time to time. We welcome the new readers and hope you enjoy and find informative Leasing News. Subscription is free. Please ask a colleague to subscribe. -------------------------------------------------------------- Classified Ads---Senior Management
The San Francisco Earthquake, from Nob Hill Ruins of San Francisco, Cal.; c1906 * Larger version, please go here: http://www.leasingnews.org/items/LN_Classified/SF_Earthquake.jpg (Note: If you are using Microsoft Browser, you may want to change your picture size feature that is set of “automatic sizing.” To see the full version, you need to turn this off by going to “Tools,” “Internet Options,” “Advanced,” and scroll down to “multi-media” and uncheck “enable automatic image resizing.” With this feature checked, your computer will automatically make the image to a maximum size that fits your page. With it off, you can see a larger image, much more detail. Editor) Atlanta, GA Baltimore, MD Chicago, IL Denver, CO. Hope, NJ. Irvine, CA. Jacksonville, FL. Lawton, OK. Long Island, NY New York, NY, NJ, Ct Tri-State Orange County, CA Philadelphia, PA. Portfolio Management Consultant ; Salt Lake City, UT San Francisco, CA ., Senior Management: Sausalito, Ca Syracuse, N.Y. Senior Management: Wilmington, DE. For a full listing of all “job wanted” ads, please go to: http://64.125.68.91/AL/LeasingNews/JobPostings.htm To place a free “job wanted” ad, please go to: http://64.125.68.91/AL/LeasingNews/PostingForm.asp The San Francisco Earthquake, from Nob Hill, 1906* This photograph was taken from Nob Hill, two blocks south of the Fairmount Hotel. Most of the soundly constructed buildings in the affluent Nob Hill area sustained little damage from the earthquake, but none escaped the fire as it swept up the hill the next day. Many of the city blocks visible in this image were dynamited by the War Department to create a fire barrier to slow the advance of the flames, but few attempts succeeded. This view looks down Powell Street toward Market Street. Several hotels under construction can be seen on either side of Powell Street. The ruins of the Emanuel Synagogue are in the center. Ships were scratched into the negative by hand, perhaps to show the location of the bay more clearly. The outlines of buildings and background landmarks were highlighted on the negative to add clarity to the print. -------------------------------------------------------------- Archives --March 14, 2003---Bonanno on Calif. License “California Broker's Should Have California Lenders License.” Joe Bonanno, Esq., CLP , Legal Counsel for the National Association of Equipment Leasing Brokers
Joesph Bonanno, CLP, NAELB legal counsel. (His birthday is this Thursday, March 16. We know the year, but won't tell. Editor) “I was unable to get back to you when you sent me an email requesting my opinion about the CA Brokers License. Needless to say, I agree with my good friend Ken Greene, who is obviously much closer to the issue than I am.” http://www.leasingnews.org/stories/ken_greene.htm “As I understand the law, the "Justification" for the license requirement was that it created a class of lenders that are exempt from the provisions of the CA Usury Statute (and of course, there were exceptions to the licensing law in the law itself, creating much confusion). However, in exchange for the exemption, the licensing requirement was imposed. I also understand that the law applies to finance lenders "engaged in the business of making commercial loans" and that loans have been defined to include leases intended as security BUT NOT TRUE LEASES. I also understand that there is another provision about CA law, and this is what makes CA so onerous in my opinion, that equates brokers to "finance lenders", i.e., makes brokers equal to lending institutions that have their own money to lend and equates brokers to the lessor in the transaction. In my opinion, this is the fatal flaw in the CA law. “So, as Ken stated, when you go through the procedure of the hearing at the state level, best of luck trying to explain to, have an administrative hearing officer/judge understand and getting them to agree with you that your particular lease is a true lease and you are exempt from the licensing requirement. You will lose every time, therefore Ken's good advice is right on point. Don't go through that hassle, just obtain the license. “Interestingly enough in my state of Massachusetts, the same issue (exemption from the usury statute in a commercial loan setting, but only in loans that range from 18% - 21%, 21% being the maximum for a commercial loan) has been addressed in a different way. Rather than imposing a licensing requirement, the day before the loan documents are signed, the lender is required to file a notice with the Secretary of State of the existence of the loan and the interest rate. As long as notice is filed, then the loan continues to be enforceable and the defense of usury cannot be raised by the commercial borrower. To me, this is a much easier approach, administratively and from the perspective of conducting a business, than a licensing requirement. “A few years back, I had discussions with a CA lobbyist that was willing to listen to try to do something to have the law overturned as it pertained to the broker being equated with a direct lender, but the lobbying costs were very, very expensive. “So for now, I defer to my friend Ken Greene and suggest that everyone in CA take his good advice.” Joe Bonanno, Esq., CLP Legal Counsel for the National Association of Equipment Leasing Brokers -------------------------------------------------------------- Weekly Treasury Auction Highest Rate in 5 Years
Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels in five years. Last week it was 4.5 and yesterday's auction of $19 billion in three month bills saw it go to 4.510% The three-month rate was the highest since three-month bills averaged 4.520 percent on March 12, 2001. The six-month rate was the highest since these bills average 4.770 percent on Feb. 20, 2001. The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,765.17 while a six-month bill sold for $9,886.00.
-------------------------------------------------------------- Streamline Sales Tax Up-Dated The following summary of the Streamlined Sales Tax meeting in Atlanta is being distributed by the Equipment Leasing Association (ELA) with the permission of CCH and it's author/editor Dan Schibley. Dennis Brown dbrown@elamail.com http://leasingnews.org/PDF/streamline.pdf
-------------------------------------------------------------- Top Stories--March 6-10
Here are the top ten stories most "opened" by readers last week. (1) Why IFC Credit is in Trouble (2 ) Weekly Bulletin Board Report (3 ) Sales Makes it Happen---by Terry Winders, CLP (4) March 9, 2001 Archives-- Who is Linda Kester? (5) Outsource your lead generation (6) March 6, 2001 Archive--- NAELB “List Serve”/”Master Member” (7) Lease Agreements/Commitment Letters (8) Narrowing Spreads Stir Complaints ( 9) Wall Street Analytics Develop Equipment Lease Module (10) Selling Up-by Steve Chriest: “Beware Negotiating Tactics” Extra on March 6 not included in Top Ten: Surprise! Surprise! Surprise! -------------------------------------------------------------- Marborough names LaChance “Business Person of the Year”
Sandra LaChance with husband Larry Larry LaChance, president of Bankers Capital in Marlborough, Massachusetts was named the Marlborough Regional Chamber Business Person of the Year. “Larry is an active ambassador for the Chamber and now serves out board of director,” said Susanne Morreale Leeber, president and CEO of the Marlborough Regional Chamber of Commerce. “By joining together, business people have accomplished and can still accomplish what no one person could do alone.” LaChance has been a member of the local Chamber since 1995 and was a founding member of the Marlborough Chapter Business Network International. “People will forget what you said, and people will forget what you did, but people never forget how you made them feel,” said LaChance in accepting the award. Here is the front page of the newspaper with the story: http://www2.townonline.com/marlborough/ Here is a PDF full version: http://leasingnews.org/PDF/Larry_LaChance.pdf
-------------------------------------------------------------- Independence/Sovereign Up-Date-Invitation St. Pat
“The merger between Independence and Sovereign continues on track for a Spring/early Summer closing. Most importantly, ICB Leasing will continue to operate out of its NYC offices even after the merger is closed with minimal changes anticipated. This is the great news many of our Lessors and Brokers have been waiting for! So continue to send in your transactions to us, just as always, and we will be here to take care of them for you. “Please make a note to come visit us on Saint Patrick's Day, Friday March 17th from 11:00 am until 3:00 pm for a good view of the Parade and lunch. ”It will be an open house. Bring everyone from the boss to your credit and operations staff; we'd love to see all of you. Family and kids too are invited. Our office has a good view of the festivities and would be a great place to sit down after standing on Fifth Avenue to watch for a while. “Please RSVP to us by e-mail or phone. Wear green.” For info: www.ny.com/holiday/stpatricks/ IRA Z. O'ROMOFF DIRECTOR OF LEASING -------------------------------------------------------------- Classified Ads—Help Wanted Account Executive
Financial Analyst
Lease Representatives
Sales Manager
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International Decision Systems up-dates “Leasing Software” list
To see the full list, please go here: http://www.leasingnews.org/elease/software.htm -------------------------------------------------------------- Cartoon---Chicago Office
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Salzano's House on Line NorVergence bankruptcy trustee Charles Forman in early March sued Thomas J. Salzano, 23, son of the alleged mastermind of the NorVergence scandal, Thomas N. Salzano, chief managing officer, for allegedly charging trips to bars and clubs, clothing and other personal expenses totaling $268,795 to NorVergence American Express card, plus reportedly using $200,000 from NorVergence to buy a $622,000 house in Glen Ridge, New Jersey. To add insult to injury, he reportedly never worked at NorVergence. The various web sites and blogs, such as ww.fightthescam.com, www.lesseerights.org, and "TheAberdeenKid ( http://finance.groups.yahoo.com/group/TheAberdeenKid )" had a field day. Allegedly they even set the listing of the house with its picture:
Description: http://leasingnews.org/PDF/NJ_RE_Listing_%20Montclair.pdf Now the NorVergence bankruptcy trustee Charles Forman has found that the mother, (wife of Thomas N.) also used the corporate American Express card: for vacations, groceries, massages, manicures, evidently whatever she wanted. According to the lawsuit filed by bankruptcy trustee Charles Forman, Jamie Salzano charged $135,628 to a NorVergence corporate card between November 2002 and March 2004. Jamie Salzano allegedly also collected at least $73,076 in wages during that period even though, the lawsuit charged, although many claim she was a "no-show employee." Peter Salzano filed bankruptcy and they report Thomas N. has not since he filed it within the seven year period before. This is the latest after the police closed down the Salzano cardboard charity box operation placed at small stores by commissioned salesmen and Salzano gets caught because he reportedly stiffs the landlord who is well connected in Jersey, who called for Salzano's immediate eviction, and enforcing the order, the cardboard box charity operation comes to light of law enforcement eyes. Meanwhile back at the ranch, the 2A provision in the NorVergence "Equipment Rental Agreements," seeming do not apply since the company was the supplier (and perhaps "manufacturer") which then affects the "hell and high water" provisions, according to several defense attorneys. As more comes to light with "hold backs," personal property and insurance claims based on the "stream of payments" or” buy-out" provisions (many seeming to be pegged to creditworthiness, they say,") the United States attorney may be getting involved regarding "conspiracy," the FTC regarding civil matters, and a number of state attorneys generals offices are back talking with each other. Several are able to understand the basics of “Lease Plus” computer accounting from LeaseTeam. Brandied about in many recent articles and NorVergence lessees are terms such as “bribery,” “perjury,” “fraud” and “conspiracy.” These words do not mean the same as in Webster's Dictionary as used in the courts of law. The various states and federal laws also have finite definition. One of the best written on the subject comes from the two United States attorneys in their 47 page “Preliminary Statement” as “attached instructions it its charge to the jury” in United States of America against Barry Drayer and Stephen Barker ( known to us as the RW Professional Scandal.) These are portions that explain these definitions as written by Roslynn R. Mauskopf, United States Attorney, and Linda A. Lacewell and Steven Tiscione, Assistant U.S. Attorneys ( of Counsel.) “Fraud” is a general term, which embraces all the various means by which human ingenuity can devise and which are resorted to by an individual to gain an advantage over another by false representations, suggestions, or suppression of the truth or deliberate disregard for the truth. Thus, a “scheme to defraud” is merely a plan to deprive another of money or property by trick, deceit, deception or swindle... “The deception need not be premised upon spoken or written words alone. The arrangement of the words, or the circumstances in which they are used may convey the false and deceptive appearance. IF there is deception, the manner in which it is accomplished is immaterial. “The failure to disclose information may also constitute a fraudulent representation if the defendant was under a legal, professional or contractual duty to make such a disclosure, the defendant actually knew such disclosure out to be made, and the defendant in question failed to make such disclosure with the intent to defraud.” Prior Inconsistent Statement: “...If you find that the witness made an earlier inconsistent statement that conflicts with his or her trial testimony, you may consider the fact in deciding how much of his or her trail testimony, if any, to believe. “In making this determination, you may consider whether the witness purposely made false statement or whether it was an innocent mistake, whither the inconsistency concerns an important fact, or whether it had to do with a small detail; whether the witness had an explanation for the inconsistency, and whether the explanation appealed to your common sense. “It is exclusively your duty, based upon all the evidence and your own good judgment, to determine whether the prior statement was inconsistent, and if so, how much to believe all or part of the witness' testimony.” Unlawful Agreement: “ ...Now, the Government need not prove that members of the conspiracy met together or entered into any express or formal agreement. You need not find that the alleged conspirators stated, in words or writing, what the scheme was, its object or purpose, or every precise detail of the scheme, or the means by which it was to be accomplished. It is sufficient to show that the conspirators tacitly came to a mutual understanding to accomplish an unlawful act by means of a joint plan or common design.” “...The key question is whether the defendant joined the conspiracies with an awareness of at least some of the basic aims and purposes of the unlawful agreement. “To act ‘knowingly' means to do something voluntarily and deliberately, and not because of mistake, negligence, inadvertence or some other innocent reason... “...the fact that a defendant, without knowledge, merely happens to act in a way that furthers the purposes of or objectives of the conspiracy, does not make him a member. More is required under the law. What is required is that a defendant must have participated with knowledge of at least some of the purposes or objectives of the conspiracy and with the intention of aiding in the accomplishment of those unlawful ends. In sum, a defendant, with an understanding of the unlawful character of the conspiracy, must have intentionally engaged, advised, or assisted in it for the purpose of further the illegal understanding. “If you find, beyond a reasonable doubt, that the defendant acted with a conscious purpose to avoid learning the truth, and that the defendant acted with a deliberate disregard of the facts, you may find that the defendant acted knowingly. “...Now, the extent of a defendant's participation in a conspiracy has no bearing on the issue of guilt. Each member of a conspiracy may perform separate and distinct acts and may perform them at different times. Some conspirators may play major roles, while others play minor parts in the scheme. He need not have been fully informe3d as to all of the details or the scope of the conspiracy. He need not have been a member of the conspiracy for the entire time of its existence. The key inquiry is simply whether the defendant joined the conspiracy with an awareness of at least some of the basic aims and purposes of the unlawful agreements and with the intent to help them succeed.” -------------------------------------------------------------- Economic/Useful Life of Leased Assets By Terry Winders, CLP Both the Federal Income Tax requirements and the definition of a legal lease for Article 2A of the Uniform Commercial Code require that the maximum term of a commercial equipment lease is 80% of the economic/useful life (useful life) of the leased asset based on the “use” by the Lessee. Both of these requirements put the “burden of proof” on the Lessor, if the nature of the lease is challenged, in either tax court or bankruptcy court. Therefore, the question is, how does the Lessor prove useful life? What information exists in the file folder that can prove to a judge that the Lessor knew how the equipment was going to be used by the Lessee (at the conception of the lease) and what impact it had on the useful life? Equipment Description and Use It begins with a proper and complete description of the equipment. Remember, you only get back what you describe. Then, if possible, discover how the Lessee plans to use the equipment and a standard for that use. A standard is miles, rotations, shifts of use, hours of use, or something that establishes a loss of value or time of use that can be measured. Everything has a finite life and you must investigate the equipment with the same interest that you investigate the credit. You use the same skills that you use on credit investigations. Check with the vendor, the manufacturer, guide books, and secondary market sellers and compare the results based on expected use and then record your findings. Useful life is not tied to fair market value. An example would be a computer that after three years of use has a limited purchase price but can still be used by some business somewhere to create a profit for over ten years making its useful life ten years. It is the total term of useful life that must be discovered and recorded in the lease folder. Actual Useful Life One note of caution, you can not use the Federal deprecation guidelines or in many cases GAAP depreciation because they are not a true test of the actual useful life. Useful life is unique to each piece of equipment based on that equipments use. This poses a difficult problem when obtaining leases from vendors where communication with the lessee may be limited. The excuse that your contact with the Lessee is limited is no excuse for tax or legal reasons so you must create a questionnaire on equipment use to accompany the credit application. This need not be elaborate but it must extract some measure of its use. Many questionnaires combine a full description with questions for location of use and type of instillation, if required. Then some measure of its use or what is required for its operation. Are the operators trained, licensed, or just regular employees? On occasion the leasing program you establish with the vendor can have different factors based on “use”. Then a statement from the vendor that they had questioned the lessee about the use in order to determine the correct equipment will give you information and support for your assumption of useful life. A lot of equipment like data processing equipment is tied to technological change and therefore its true useful life is questionable but still some attempt must be made to determine your best guess (with some recorded facts) to show your attempt to prove its useful life. Multiple Use It stands to reason that if a leasing company wants to assume a residual then the equipment investigation to determine equipments value at lease termination gives you some information towards the goal of determining useful life. But once again useful life is not a value issue. Also if equipment is permanently installed you must control the space it resides in to have a multiple use to help prove that it has additional life pass its current use. If not, then only the lessee can use it and that means you have exceeded the 80% limit. Accelerator Clause's The courts are beginning to question why, as equipment Lessor's, we do not have accelerators or additional rent in our leases to accommodate the “over use” of the asset. For example, a Lessee indicates in the application that they intend to use the equipment only one shift a day, and the lease reflects this use. Then business improves and the equipment may be used two or three shifts a day and there is nothing in the lease that calls for increased rent…. Is the Lessor acting like a money lender? Or, are they interested in how there equipment is being used? Without concern for the equipment “use” and its impact on the lease you look like a money lender when you could have done something to protect the lease, this is another red flag that helps the court decide the true nature of the transaction. If you are truly in equipment leasing you should be very concerned about the equipments “use” and that use needs to be recorded and acted upon to be considered a true lease. Terry Winders: Has been teaching the principles of equipment leasing for over thirty years and his consulting and teaching business is in Louisville Kentucky Terry Winders, CLP Lease training and Consulting 502-327-8666 -------------------------------------------------------------- Leasing Association Conferences --- Spring 2006
Eastern Association of Equipment Lessors March 26-29
Great Learning Opportunities
Networking Opportunities:
Beach and Water Fun:
Registration details to be announced soon -- watch for more information!
To register and leasrn more about the conference: --------------------------------------------------------------------
National Association of Equipment Leasing Brokers April 20-22 Guest Speakers
If you missed these informative classes in 2005 Advantage 2.0 & alaQuote Training
**Please RSVP by calling (866) 352- 8665 or by emailing jim@pbs4u.com CLP Review: An Inch Wide and a Mile Deep In conjunction with the NAELB, the CLP Foundation is pleased to be able to present this program to attendees of the 2006 Annual Conference in Minneapolis . An in depth review of four of the toughest subjects in Equipment Leasing:
EARLY BIRD Registration Deadline: March 15, 2006 HOTEL Registration Deadline: March 22, 2006 Register on line at: http://www.naelb.org/cde.cfm?event=120803 ------------------------------------------------------------------------------
Equipment Leasing Association April 23-25 ---------------------------------------------------------------------------
Association for Governmental Leasing & Finance May 4-5 -----------------------------------------------------------------------------
At the conference, Leasing News will be presenting Paul Menzel, CLP, with the "Leasing News Person of the Year for 2005" award . Editor/Publisher Christopher "Kit" Menkin and many of the Leasing News Advisory Board will be on hand for the presentation; to salute Paul for the over 30 years he has contributed to the leasing profession. "We hope to see you there." Kit Menkin United Association of Equipment Leasing May 4-7
The featured speakers for the UAEL Spring conference are: Our Opening General Session is presented by Greg Winston who will address the subject of “Creating Unshakeable Luck”
Please register online at www.uael.org or contact Kim at kim@uael.org or 760-564-2227 with any questions regarding the conference. Also, register online for golf at the beautiful Talega Golf Club to be held Thursday morning May 4, 2006.
Register: or download form in PDF Funding Track: Discount Available: with a minimum of one full paid registration (member or non-member), your Operations employees can attend the Friday aftternoon Funding Track for $125.00. In addition, each participant attending the Funding Track is invited to join the President's Reception Friday evening - a great opportunity to network with peers and funding sources. The Funding Track highlights are below:
Click here to register for Funding Track -----------------------------------------------------------------------------
National Vehicle Leasing Association June 7-10 ----------------------------------------------------------------------------
Equipment Leasing Association 45th Annual Convention --------------------------------------------------------------
U.S. EQUIPMENT LEASING & FINANCE FOUNDATION ARLINGTON, VA,– A growing number of lessors exhibiting cautious optimism are slowly, but successfully, knocking down the great wall that separates them from turning lease financing into a mainstream financial product in China to help companies acquire critical equipment. This sentiment is summarized in a white paper on China released by the Equipment Leasing & Finance Foundation. Like any new market, China presents a number of formidable – sometimes daunting – challenges for lessors. Overcoming them as the country moves toward a market-based economy makes the job that much more compelling. Careful planning and execution, however, are leading to success for early entrants. “The penetration rate of leasing in China is less than one-half of one percent, as compared to the prevailing level of 30 percent in the United States and other mature markets,” said Foundation Executive Director Lisa Levine. “Obviously there is tremendous growth potential for the Chinese leasing industry. As the Chinese economy continues to evolve, learning from the experiences of early entrants – both good and bad - could determine the chances of success or failure for new lessors.” The Foundation commissioned The Alta Group consultancy to develop the white paper entitled, “Knocking Down the (Great) Walls: Identifying Factors for Success in the Chinese Equipment Leasing Market,“ available through the ELA. “To many people in our industry and business in general, China represents this big morass of unknowns,” said Alta Group Managing Principal John Deane. “This white paper helps companies secure a better understanding of the Chinese market and determine the minimum requirements for operating there, including risks that must be addressed to be successful. “Many of the lessons learned by lease finance providers in China and discussed in the paper can actually be transferred to companies in other industries who are evaluating such a move to this burgeoning market.” Content for the white paper was derived largely through extensive interviews with a number of lessors currently operating in China. The document includes case study overviews of each of their experiences. The interviewed lessors include, among others: • A captive lessor whose parent is a large, United States-based manufacturer of industrial equipment; • An international technology company whose China leasing activities are conducted by a joint venture leasing company with a Chinese lessor partner; • A Hong Kong-based bank that writes offshore leases into China; • A local Chinese-owned lessor; and, • An international bank-owned equipment lessor that has studied the China equipment leasing market carefully, but has chosen not to enter the market yet. “Our research indicated that the infrastructure needed for a viable equipment leasing industry in China is not fully in place,” Deane said. “As a result, it's critical that lessors be armed with adequate and accurate information regarding the opportunities and pitfalls in this market. Many of the risks in China are the same as those in other markets, except they are compounded by time and distance. There also are some uniquely Chinese beyond differing tax and accounting rules.” Key findings discussed in the white paper include: • There are plenty of risks in doing business in China, but nothing that cannot be overcome through diligence and careful planning. Of greatest concern are credit reporting and the legal environment in China, both of which are extremely challenging – as are the regulatory process and tax system. The understanding and acceptance of leasing is improving, however, helping lessors carefully maneuver through these obstacles. “Central databases of credit histories just don't exist in China, so you can't run your business there like other markets,” Alta principal and co-author Jonathan Fales said. “Consequently, you need to know your customers on a personal basis. Local lessors and those with Chinese partners have this knowledge and advantage. Over time, this process will become more westernized, but this is still several years away.” • Unless there is a customer-driven need, most foreign lessors should not enter the market just yet. Given the risks involved, waiting until the market is better prepared for modern lease financing is prudent. But, if it appears a customer or parent company will need lease finance support in any way, there should be no hesitancy to move into China and establish operations. “When the timing is right, the sooner a lessor enters this market the better chance they have at grabbing a foothold of business,” Fales said. “There are some risks to be sure, but the sooner you get to China and establish your operation, the better shape you will be with a few years of experience before the expected rush into the market later this decade.” • More than one business model seems to work for lessors in China. Wholly foreign-owned enterprise (WFOE), joint venture, offshore and Chinese-owned onshore lessor arrangements all seem successful, depending on the specific needs of the lessor and customer. Partnerships with Chinese lessors can shorten the time to market, but it can be difficult to find a suitable partner due to a variety of cultural differences and control issues. “Based on our analysis of the leasing industry and benchmarking of other industries where foreign investors have ventured into China, we've found it advantageous for a foreign lessor to team with a Chinese partner,” Alta Principal Rafael Castillo-Triana said. “Finding such a partner with financial stability and significant experience in leasing can be a challenge but, if the right one is found, this can ease a lessor's entrance into the Chinese market.” • Business plans must account for an acute shortage of local talent in China. Across the globe, the leasing industry is insular and has had to largely train its own people. This situation is surprisingly even more exaggerated in China. Most executives come from the traditional banking and finance industries, with little if any exposure to the practice of lease financing. Significant recruiting and training resources must be dedicated to address this situation. “At this point, if you talk to the major lessors in China and ask them who the key people are in the industry, you hear the same set of names from each,” Fales said. “The talent pool to service the market needs to grow significantly before leasing will become a mainstream industry in China.” • Leasing is still a new concept for many Chinese businesspeople. There is a surprisingly low level of understanding of basic lease finance concepts in China, even among vendor and reseller executives. Significant marketing and training resources must be dedicated to overcome this issue. “Virtually all of the lessors we interviewed were amazed by the fact that leasing is not a well understood concept in China, despite the emerging market economy,” Castillo-Triana said. “They realize time and effort are needed to educate this evolving market on the advantages of leasing.” • The used equipment market in China is largely undeveloped. Chinese businesses have historically avoided used equipment due to a combination of reliability concerns and negative connotations associated with the purchase of used equipment. There is great potential to build a strong used equipment market for some assets, including IT and telecom equipment. “Perceptions toward used equipment are slowly changing, especially as foreign manufacturers with better quality equipment enter China,” Fales said. “People are starting to realize, for example, that a piece of machinery or construction equipment three or four years old may actually be in good shape and worth buying on the used-equipment market. This is another cultural issue that is going to take some time to overcome.” • Patience is critical in establishing any business in China. Little happens fast in this country. Both Chinese and foreign lessors have painfully experienced the lengthy process of securing government approvals. Just trying to secure a signature on a simple document sometimes takes months. As a general rule of thumb, plan double the time needed when working in this market place. “When it comes to business, anything the Chinese government touches takes a lot longer to get done than other countries, but this is true for virtually every industry in the country,” Fales said. “This certainly increases the time needed to get into the market. Once a lessor decides to enter China, it takes at least 6-9 months, probably longer to get everything in place to do business.”
### Press Release ########################### Michael C. Smith Joins Marshall & Ilsley Corporation as MILWAUKEE, / -- Marshall & Ilsley Corporation (M&I) announced the appointment of Michael C. Smith, 47, as senior vice president and corporate treasurer. Prior to joining M&I, Smith served as treasurer of the consumer finance group for American International Group (AIG) in New York. There he was responsible for directing the activities of 13 banks and finance subsidiaries in eight countries including the United States, Asia, Latin America, and Eastern Europe. Preceding his position at AIG, Smith served as senior vice president of international treasury for Associates First Capital Corporation, now CitiFinancial. Smith earned a bachelor's degree from Washington and Lee University in Lexington, Va. and an MBA from the University of Texas. Marshall & Ilsley Corporation (NYSE: MI - News) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $46.2 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest Wisconsin- based bank. M&I Bank has 196 offices throughout the state, in addition to 42 locations throughout Arizona; 13 offices in metropolitan Minneapolis/St. Paul, Minn.; and locations in Duluth, Minn.; Las Vegas, Nev.; and, Marco Island, Naples, and Bonita Springs, Fla. M&I's Southwest Bank affiliate has seven offices in the St. Louis area and one office in Belleville, Ill. Metavante Corporation, Marshall & Ilsley Corporation's wholly owned technology subsidiary, provides virtually all of the technology an organization needs to offer financial services. M&I also provides trust and investment management, equipment leasing, mortgage banking, asset-based lending, financial planning, investments, and insurance services from offices throughout the country and on the Internet ( http://www.mibank.com or http://www.micorp.com ). M&I's customer-based approach, internal growth, and strategic acquisitions have made M&I a nationally recognized leader in the financial services industry. ### Press Release ########################### News Briefs---- Bank of China's Net Profit Up 33 Percent China's Largest state bank singles out underwriters Fitch Assigns Short-Term Issuer Default Ratings To Japan's Financial Institutions Southwest Airlines raises fares, industry follows Family-Owned McClatchy Chain to Buy Knight, Plans to Sell Off 12 Dailies Papers involved in the transaction 2 Asian Automakers Plan Ventures in 2 States Left by U.S. Carmakers Calling it a “slow down,” U.S. house prices should increase about 5.8 percent this year Capital One buys North Fork Bancorporation Washington Mutual seeks bigger share-Free Checking Campaign March mortgage market deals with difficulty Google, U.S. to face off in federal court ---------------------------------------------------------------
You May Have Missed Idea of Web express lane sparks hot debate http://seattletimes.nwsource.com/html/businesstechnology/2002861578_btexpress13.html ----------------------------------------------------------------
“Gimme that Wine” Red wine may help gum disease? http://www.foodconsumer.org/777/8/Red_wine_may_help_gum_disease_.shtml Argentine wine industry receives more than US$1.5B If you want to know if you got a value for your wine, or what the wine price is today, go to www.winezap.com Type in the vintage (year) and name of the producer with wine type or geographic area, such as 1995 Chateau Lynch Bages Pauillac. Even 1995 Lynch Bages will work, or 1999 Viader ----------------------------------------------------------------
Calendar Events This Day India: Holi In this spring festival people run through the streets smearing each other with brightly hued powders and colored water. This is observed by Indians without regard to caste. Huge bonfires are built on the eve of Holi. Because there is one universally accepted Hindu calendar, this holiday may be celebrated on different dates in some parts of India, but it always is in February or March. Moth-Er Day A day set aside to honor moth collectors and specialist. Celebrated in museums or libraries with moth collections. National Children's Craft Day To encourage children's creativity through crafts. Celebrate by painting, sculpting or creating arts and crafts projects. Organize You Home Office Day One day each year for the more than 34 million home office households to find files, purge papers and tackle to-do lists. www.homeofficelife.com PURIM Hebrew calendar date Adar 14, 5766. Feasts, gifts, charity, and the reading of the Book of Esther mark this commemoration of Queen Esther's intervention in the 6 th century BC to save Jews of ancient Persia. Haman's plot to exterminate the Jews was thwarted, and he was hanged on the very day he had set for the execution of the Jews. Began at sundown, March 13. Pi Day Potato Chip Day Genius Day White Day ----------------------------------------------------------------
Today's Top Event in History 1986- Microsoft goes public, closing the day at twenty-eight dollars a share, up seven dollars from the offering price. The offering, dubbed "the IPO of the year" by industry analysts, created a slew of instant tycoons as young Microsoft employees found their stock options suddenly worth something. Microsoft was founded in the mid-1970s, when high school friends and fellow computer nerds Paul Allen and Bill Gates read a Popular Electronics article about a new microcomputer called the Altair 8800. The two had been programming computers since high school, where they developed a system called Traff-o-Data for analyzing traffic data, as well as a registration system that reportedly placed the two in the classes of the most attractive girls. Allen and Gates quickly developed a version of BASIC, a computer language, and licensed it to MITS, maker of the Altair. The two formed a company called Micro-Soft (they later dropped the hyphen). For the next five years, Microsoft concentrated on developing computer languages that would run on the variety of home computers that flooded the market in the late 1970s. Microsoft's lucky break came when operating system guru Gary Kildall of Digital Research missed a meeting with IBM executives because he was out flying his plane: Instead, IBM asked Microsoft for an operating system. Gates quickly purchased the rights to Seattle Computer Products' "Quick and Dirty Operating System" (QDOS), which became MS-DOS, the operating system powering the IBM PC, introduced in 1981. Today he is the world's richest billionaire: $50 BB. ----------------------------------------------------------------
This Day in American History 1729-The first Catholic nun who professed her vows in the United States as Sister St. Stanislas Hachard of the Ursuline Convent, New Orleans, LA, who took her voews this day. ---------------------------------------------------------------- Winter Poem The Sound of the Trees by Robert Frost I wonder about the trees |
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