Summation of News Reports of Financial Technology
Companies Source of Funding Shutting Down

Synapse, based in San Francisco,  has announced they have shut down. The bank accounts of tens of thousands of U.S. businesses and consumers have been frozen in the aftermath of the abrupt shutdown and bankruptcy of financial technology company Synapse, which acts as a middleman between financial technology companies and banks.

Estimates are before it filed for bankruptcy,  it had roughly 100 customer relationships that exposed roughly 10 million Americans to their services. However, banking regulators believe that figure is extremely high and the number of impacted Americans will be thousands or tens of thousands.

Synapse's creditors have been pushing in court to convert the bankruptcy to Chapter 7, which would liquidate the company. In court, representatives for Synapse's customers argued that liquidation could make the disruptions to customers' funds even worse.

It's not clear what role U.S. banking regulators can play in the chaos resulting from Synapse's collapse. Synapse isn't a bank so its regulation is not handled by the Federal Reserve or the Federal Deposit Insurance Corporation. Because none of the banks that Synapse has worked with have failed, there is no eligibility for FDIC deposit insurance to be paid out.

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New Hires/Promotions in the Leasing Business
and Related Industries

Garth Arlen was hired as Equipment Finance Specialist, Jupiter Equipment Finance, Tequesta, Florida. He is located in Denver, Colorado. Previously, he was Director of Business Development, Northpoint Commercial Finance  (August, 2020 - August, 2023); Director Business Development, Wells Fargo Capital Finance (January, 2008 - January, 2020); ABL Account Executive, Castle Pines Capital, a Wells Fargo Company (January, 2008 - December, 2013), Full Bio:
https://www.linkedin.com/in/garthallen/details/experience/
https://www.linkedin.com/in/garthallen/

Thomas Griffith was hired as Senior Account Manager, DLL, Wayne, Pennsylvania. He is located in West Chester, Pennsylvania. Previously, he was Financial Sales Manager, Siemens Financial Services (June, 2022 - May, 2024); Fleet Solutions Account Manager, DLL (May, 2021 - June, 2022). Prior, he was a Philips Medical Capital (PMC), starting September, 2002, Senior Territory Manager, promoted August, 2014, National Sales Manager, Financial Specialist, promoted Vice President Business Development (December, 2017 - April, 2021). He began his career at DLL serving as Account Manager (December, 1998 - September, 2002).
https://www.linkedin.com/in/tomgriffithdll/

Todd Renstrom was promoted to Vice President, Vendor Team Leader at Ascentium Capital, a Division of Regions Bank, Kingwood, Texas.  He is located in Greater Boston. He joined Ascentium February, 2019.  Previously, he was at Direct Capital, a Division of CIT Bank, N.A., starting February, 2017, Business Development Representative, promoted September, 2017, Program Manager, promoted Lending Solutions Manager (December, 2017 - January, 2019).
https://www.linkedin.com/in/todd-renstrom-660567130

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deBanked Broker Fair 2024 Recap
by deBanked Staff

deBanked Ladies at Lending Table Wear Pink

Broker Fair 2024 in New York City went off with a bang, surpassing attendance of both Broker Fair 2023 and deBanked CONNECT MIAMI 2024. The all-Kosher catered event ran a lean format of high impact speakers with an optimized networking atmosphere. The Preshow Party at Somewhere Nowhere NYC sponsored by Triton Recovery Group was also a night to remember! Pictures will go up this week.

Some key highlights:

• Platinum Sponsors: Triton Recovery Group, Bitty Advance, Lendini
• Tech Demonstrations: Ocrolus, Heron Data, Cloudsquare
• Featured Speaker: Peter Ribeiro
• SBA Lending Speakers: Bob Coleman & Adam Seery
• NY Legal and Regulatory Update Attorneys: Scott Pearson, Kate Fisher, Chris Murray, Patrick    
Siegfried

https://debanked.com/2024/05/broker-fair-2024-recap/

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Leasing and Finance Industry Help Wanted

Trade Leads with Community & Regional Banks
Take Your Banker Friend to Lunch
 By Kit Menkin

Many community and regional banks do not offer leasing or equipment finance plans for acquiring equipment or expanding. They provide accounts receivable financing, working capital loans, consumer financing, vehicle financing, and often the officers change banks and their abilities.

One of the best markets for brokers and originators is to get close to a local banker as you trade leads and funding. You can do this also by referring your customers to them. Most decision makers spend little time going to the bank and don't know who to talk to.

To gain a community and regional bank’s trust, you need to explain your procedures and request that a bank loan officer accompany you on a few calls. Bring them particularly to a possible client to move to their bank. They also need to see how you react with their customers before they will allow you to contact a customer with their blessing.

It is an opportunity for you as well as the bank to create new business.

To sum this up, community and regional  banks are an excellent source of leads but they require a lot of work and time because they don’t know you.

To introduce them to a possible bank client is a great introduction to friendship and trading business.
It also allows them to refer a long time client who they are at a limit to lend directly. My advice: take them to lunch as your friend.

 

 

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Top Ten Leasing News Read by Readers
May 20 - May 24

(1) Update: Ascentium vs. Premiere Copier
Ken Greene, Esq., Leasing News Emeritus
https://leasingnews.org/archives/May2024/05_20.htm#up

(2) New Hires/Promotions in the Leasing Business
and Related Industries
https://leasingnews.org/archives/May2024/05_20.htm#hires

(3) Has Roglieri Left the Building?
Ken Greene, Leasing New Emeritus
https://leasingnews.org/archives/May2024/05_22.htm#has

(4) New Hires/Promotions in the Leasing Business
and Related Industries
https://leasingnews.org/archives/May2024/05_24.htm#hires

(5) New Hires/Promotions in the Leasing Business
and Related Industries
https://leasingnews.org/archives/May2024/05_22.htm#has

(6)Frontline Defense
By Scott Wheeler, CLFP
https://leasingnews.org/archives/May2024/05_22.htm#front

(7) Why You Need to Get Outdoors:
  The Secret to Success
By Ken Lubin, ZRG Partners, Managing Director
https://leasingnews.org/archives/May2024/05_24.htm#why

(8) Commercial Finance/Leasing Finance Conferences 2024
https://leasingnews.org/archives/May2024/05_22.htm#conf

(9) CLFP Foundation Surpasses 1,500 Members
Sharon Pietras Becomes Number 1,500
https://leasingnews.org/archives/May2024/05_24.htm#clfp

(10) Effort to Provide Restroom Access to
Male and Female Truckers Continues
https://leasingnews.org/archives/May2024/05_24.htm#effort

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Non-Competes Are Out the Window
By Sloan Schickler, Esq.

Non-compete agreements have always been part of the tool kit for leasing and finance companies to deal with their employees, especially the sales team. To prevent the sales team from hopping to another business, quite often employers enter into employment agreements that restrict the employee’s ability to compete with the leasing or finance company for a period of years after he/she leaves the company.

These restrictions are usually coupled with prohibitions against soliciting the employer’s customers and other employees as well. Combined with a non-disclosure agreement covering company proprietary information, this is thought to be a good way to protect the business from being pillaged by its employees.

Some states have laws prohibiting non-competes: California, North Dakota, Minnesota and Oklahoma; others permit non-competes for employees that earn over a certain amount, such as Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia and Washington. 

Step in the Federal Trade Commission (“FTC”). On April 23, 2024, the FTC published a final rule banning employers from entering into, enforcing or attempting to enforce non-competes post-employment and preventing enforcement of any existing non-competes except those for certain senior executives that earned at least $151,164 in the prior year. The effective date of the rule will be September 4, 2024 if it is not delayed due to legal challenge.

The rule does not apply to a bona fide sale of a business which is a common deal term in the sale of a company, including leasing or finance companies. Nor does the rule affect valid causes of action to enforce non-compete agreements that accrued prior to the effective date of the rule. The rule is not just limited to employees, it also covers independent contractors, interns, externs and volunteers.

Employers are required to give notices to their employees covered by non-competes advising that the non-competes are no longer effective with exception to senior executives.

Entities exempt from this prohibition are those over which the FTC does not have jurisdiction: banks, savings and loan institutions, federal credit unions, common carriers, air carriers, and certain non-profits.

The FTC justified the ban in part on the basis that non-competes squelch free competition and result in U.S. workers receiving lower remuneration for their work. Certainly, many states have banned or limited the practice. Whether the rule will stand up in court remains to be seen. The U.S. Chamber of Commerce brought an action against the FTC immediately when the rule was adopted alleging the FTC lacks the power to adopt such wide-ranging regulation. The retroactive nature of that part of the regulation invalidating existing non-competes likely will be challenged as destroying the bargain the employer made when it entered into the employment agreement. Stay tuned…

Article Recently Appeared in the National Vehicle Leasing Association LeaseWire

Sloan Schickler is a partner in the commercial finance law firm, Schickler & Schickler PLLC. Schickler, a veteran vehicle leasing, finance and bank attorney and the attorneys in her firm have decades of experience representing and protecting lessors, banks, captive and independent finance companies in all facets of the vehicle leasing and financing business. She has served as the NVLA Legal and Legislative counsel since 2017, is currently the only woman on the NVLA board of directors and is a supporter of Leasing News and sits on its Advisory Board. Sloan can be reached at sloan.schickler@schicklerlaw.com or 212-262-5297.

Oct. 16-18: NVLA Conference, Clearwater Beach, Florida
https://www.nvla.org/page/2024conference
Sloan Schickler, Esq., Schickler & Schickler, will be covering the conference for Leasing News. She is also presenting there.

Great Pyrenees Mix Puppy
Saint Petersburg, Clearwater, Florida

Dixie

Female
Puppy  10.5 weeks old
Spayed
Vaccinations up-to-date
House Trained
Good in Home with
Other dogs, cats, children

Meet Dixie

Hello, I’m Dixie! I was born 12/17/2023 aka 10.5 wks old. My mom is a Great Pyrenees mix but I never met my dad. I am polite and sit pretty while my foster mum makes my meals. She says that I’m food motivated. I am still working on potty training, but I’m catching the hang of it as well as foster mum watching my cues. I have conquered going down steps and finding the confidence to go back up them. I play hard with my sister & our one foster sibling. I am working on being crate trained.

My adoption fee is $400 which includes shots, spay & my foster mum is donating to get me microchipped. Applicants must be local to Tampa Bay: Please fill out an application if you want my cute “pupness” in your home or message FARR if you have an application on file already

http://bit.ly/FARRapplicatiom

Farr-Florida Retriever Rescue
Saint Petersburg, Florida
P.O. Box 17468
Clearwater, FL 33762

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Unlocking the Potential of American Association
Of Commercial Finance Membership
Webinar Thursday, May 30, 2024  3:00 P.M. (ET)

News Briefs

The Hidden Driver of Soaring Home Insurance Costs
    A looming round of reinsurance renewals
https://www.wsj.com/finance/home-insurance-costs-rising-reinsurers-2024-c43397bd?st=hxwfk8kejkl0z6q&reflink=desktopwebshare_permalink

The $35,000 Kia EV3 Is The Electric Car
    America Has Been Waiting For
https://insideevs.com/news/720934/kia-ev3-why-it-matters/

New Report: Main Street Small Business Optimism
    Rises as They Successfully Navigate Macro Environment
https://www.ondeck.com/small-business-trends?utm_source=press-release

Best cities for freelancers and
    self-employed workers 2024
https://www.akronnewsreporter.com/2024/05/27/best-cities-for-freelancers-and-self-employed-workers-2024/amp/

McDonald’s getting rid of soda machines,
    free refills
https://www.nydailynews.com/2024/05/23/mcdonalds-get-rid-soda-machine-free-refills/

What Happened to Our Ad-Free TV?
    "almost everywhere — on streaming services now"
https://www.nytimes.com/2024/05/26/business/media/ads-tv-streaming.html

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Georgia native Victoria Groce on how
    she won 2024 Jeopardy Masters
https://www.ajc.com/things-to-do/georgia-entertainment-scene/georgia-native-victoria-groce-on-how-she-won-2024-jeopardy-masters/UOTISZ5ZKZHWZEXD77MLP6YT2I

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Sports Briefs---

Why Hundreds of shareable e-scooters have
     Vanished across the San Francisco Bay Area
https://www.mercurynews.com/2024/05/27/how-bay-area-streets-encapsulate-the-acceleration-and-wreckage-of-the-volatile-escooter-industry/

S.F. office vacancy rises to yet another
record high — over nine times pre-pandemic level
https://www.sfchronicle.com/sf/article/s-f-office-vacancy-19363841.php

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California News Briefs---

Oakland reaches landmark deal to sell Coliseum site
  to developers, ending decades of ownership
https://www.sfchronicle.com/eastbay/article/oakland-reaches-landmark-deal-sell-coliseum-19471067.php

S.F.’s massive plan to create a ‘Grand Central
Station of the West’ wins major funding grant
https://www.sfchronicle.com/sf/article/s-f-transit-center-19471146.php

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Gimme that Wine

 

http://www.youtube.com/watch?v=EJnQoi8DSE8    

Is wine on the decline? New report and local
    winemakers counter widespread claims
https://www.pressdemocrat.com/article/lifestyle/california-wine-industry-decline-2024/ 

Rhone Rangers Savor Summer
June Wine Tasting Planned in Sonoma
https://www.winebusiness.com/news/article/287812

The Chappellet family and the forging
of Napa’s Cabernet identity
https://www.decanter.com/premium/the-chappellet-family-and-the-forging-of-napas-cabernet-identity-528315/

Chardonnay? Inside Sonoma Wines’
Italian Renaissancehttps://www.wsj.com/arts-culture/food-cooking/is-vermentino-the-new-chardonnay-inside-sonoma-wines-italian-renaissance-15f789c4