November 15, 2002

 

  Headlines---

 

Pictures from the Past---1994-Three Ladies

           Classified---Help Wanted---Chase Industries

            Streamlined Sales Tax Agreement Features "Equipment Leasing"

             American Express Business Finance-----Exposed

              Bankers Leasing -The Skinny on Citibank

               ELA Dues Innovation--" $600 Transition Member"

      HP Unveils  90-day Holiday Lease Payment Deferral Program

       Fair, Isaac Declares Quarterly Dividend

         30-year mortgage rates drop to new low        

           Wholesale Prices Have Largest Gain in 2 Years

              If Higher Rates Loom, Will the Fed Twist?---Floyd Norris

                   More Borrowers Defaulting on Cards--ABSNet.net

           News Brief----

             Will the West Coast Finally Get the Trophy?

           ( USC's Palmer has numbers and momentum,

           but is anyone west of Vegas paying attention?)

 

    ### Denotes Press Release

 

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       Pictures from the Past---1994—Three Ladies

 

 

 

(left to right) Jan Holland Sanders, AVP, Commerce Security Bank,

Sacramento, CA; Felicia Torres and Gloria Wagner, cost service manager, both of EPI Leasing Company, Fresno, CA.

 

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            Classified---Help Wanted—Chase Industries

 

Sales: National: 7 offices Medical & IT/ plus.
Seeking professionals w/solid book of business
& high ethics. Exceptional support & commissions.
Expenses paid. 616-59-6800
Email: gsaulter@chaseindustries.com   "UAEL"

 

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Streamlined Sales Tax Agreement Features “Equipment Leasing”

 

The Equipment Leasing Association (ELA) welcomes the adoption of the Streamlined Sales and Use Tax Agreement by the Streamlined Sales Tax Implementing States.  The Agreement now being sent to state legislatures for enactment contains an ELA supported definition of leasing and lease-sourcing provisions. ELA State Government Relations Committee Chair Valerie

Guerrieri, CIT, hailed "this unified industry effort that will deliver simplification when administering sales tax on leasing transactions."

 

The process began in March 2000 when the Equipment Leasing Association joined deliberations by state revenue officials implementing the Streamlined Sales Tax Project, a new nationwide software-based uniform sales tax system.  It is planned for all types of consumer and commercial transactions to simplify and make uniform the sales and use tax system in 45 states and the District of Columbia. Although the Project is often seen as an effort to tax Internet sales, ELA engaged in the process to safeguard and simplify sales tax administration on commercial leasing transactions.

 

Negotiations between lessors and state governments stretched over two years during which ELA served as a coordinator of a broad effort industry effort that included the American Automotive Leasing Association and National Vehicle Leasing Association.

 

The collaborative effort culminated with provisions complementary to existing commercial practice.  Benefits to be derived from enactment of the sales and use tax Agreement by states includes the first nationwide uniform definition of leasing

supplemented by a sourcing rule that is consistent with rules common to income tax apportionment and personal property tax situations

 

In addition to consistent definitions, states will adopt uniform bad debt provisions, common rates and tax bases by state while relaxing administrative burdens for registering, exemption certificates and electronic filings.  States will also limit the scope of audit for companies participating in one of three software-based models.

 

Guerrieri complemented "the willingness of state revenue officials to spend several years listening to the concerns of equipment lessors.  The eventual uniformity amongst the states is an outcome that will benefit our industry."  She also noted it will be a continuous mission of ELA to monitor Project activities and provide input to proposals that affect our industry.  ELA continues to raise the issue of tax imposition and credits as the Project moves forward.  Other topics on an advisory distributed by the Project include audit standards and procedures; uniform exemption certificate; rates/jurisdiction database; central registration system; matrix guidelines; digital property definitions; drop shipments;

and bundling.

 

 

Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in the dynamic equipment leasing and finance industry. ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad. ELA maintains an informational portal for financial decision-makers at http://www.leaseassistant.org. Headquartered in Arlington, Va., ELA has more than 800 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $244 billion industry in 2002. Visit ELA online at http://www.elaonline.com.

 

 

 

American Express Business Finance-----Exposed

 

In 2001, the Diversified Sales Team at American Express Business

Finance, under my direction (not including specialty vehicle in

Chicago), funded in excess of $210,000,000 in leases with an average

yield above 16%. (you can do the math on the spreads)

 

This highly profitable business was originated by 70 hard working sales people and three very dedicated sales managers; Dan Dengate, Tom Strain and Scott

Kaase.  (Guys...as I told you this time last year...beware, as your blood is not "AMEX BLUE") 

 

If you have been terminated by American Express Business Finance, and

love the leasing business, we'd like to hear from you. 

 

Richard A. Baccaro

American Equipment Finance LLC. 

rbaccaro@aefllc.com

Fax:  908-542-9333

 

-----

The specialty vehicle group is a separate group. The problem is to not a problem that involves managing talent and ego. Amex is high on talent to be sure, but low on management smarts.

 

The tactics internally of constantly flip -flopping accounts, people, focus and objective leaves them with no continuity for vendors or customers. Everyday brings a new focus or change.

 

Huge Vendor Program initiatives are launched in which the National Accts persons wishes who signed up the account are not followed and then the sales force gets the "opportunity "to hit the marketplace with Sky High Rates, poor calculator tools, shoddy contact information , and low buy in and assistance in marketing the programs both internally and on the vendor side. Its almost a "lets throw it and see if it sticks philosophy."

 

 God forbid someone in sales management go on a call with a sales rep or try to help out on a deal or strategize with a sales rep. Good luck if you need some help on a deal that would bring in lots of revenue.

 

In response to Raeder about the low 3's, your forgetting Amex builds in 400 basis points to cover past bad debt from First Sierra before they start adding anything else on..........some big name programs have rates at 20%.

 

 "Gee, I wonder why we're doing such a small %(10-20%) of the deals our sales people see on the street?"

 

Name Withheld

 

Bankers Leasing –The Skinny on Citibank

 

Yesterday, I was contacted by an account representative for Bankers Leasing.

For the past few months the sales team had suspected something was wrong, as

expense account reimbursements were strangely delayed, and marketing and

convention travel was being highly scrutinized.

 

It has been known that Bankers has been up for bid for several months, yet

despite purchase offers, Citibank Leasing has decided to close the division

rather than sell. Many at Bankers feel this was due to Citibank not wanting

to compete with any potential buyer of Bankers.

 

Citibank Leasing also owns Citicapital Vendor Finance, a direct competitor of Bankers Leasing in the medical equipment leasing industry. Prior to the purchase of Bankers Leasing, Citicapital Vendor Finance had been competing with Bankers in major accounts such as PSS (Physicians Sales & Service). Many of these major

accounts had agreements with both Bankers Leasing and Citicapital Vendor

Finance for their customer financing, so after the purchase, Citibank found

they were competing with themselves.

 

 They found some reduced rates were offered and application only business was split by vendors and sent to each division. Bankers and Citicapital maintained separate credit desks consequently, the split applications went unnoticed.

 

As of yesterday morning, despite the offers made to purchase Bankers

Leasing, most  sales representatives were terminated and required to vacate

the premises. I am told, it was handled in a very cold manner via a

conference call and despite several questions Citibank Leasing merely closed

the conversation with "Bankers is now closed and will be liquidated".

 

Employees in California and offices in Chicago were given 60 day notice as

required by state law with other employees terminated immediately.

 

Vendors were contacted with the news that Bankers had been closed and that all

business would be handled by Citicapital Vendor Finance.

 

Representatives of Bankers received immediate phone calls from competitors

interested in hiring the whole group. Negotiations continue as the sales

team desire to find a home for themselves and their book of business.

 

Prospect Leasing was originally founded by Bruce Horton, now with Banco

Popular Leasing, with a specialty in medical equipment financing. The

company was later sold and renamed "Bankers Leasing". Citicapital later

purchased Bankers along with American European Bank "EAB", a general

equipment Lessor (also closed by Citicapital) two years ago.

 

Name With Held

 

Citi keeps saying "business as usual" and they'll take any leasing deal but

try calling them.  They have no programs for middle market leasing.  They

just want us to think they're still a competitor in order to keep other

lessors out of the market. They are in the business of buying lease

portfolios so they can augment the business throughout the myriad of other

services they provide.  Many of my (former) clients are disappointed to hear

that Citi doesn't want their business. 

 

Name With Held

 

 

 

Equipment Leasing Association Dues Innovation—“ $600 Transition Member”

 

President Michael Fleming:

 

“Since the last dues adjustment in 1992, the profile of the industry has changed considerably, primarily through industry consolidation. The dues schedule should be amended to accomplish the goal of all members paying at a dues level that at a minimum covers costs.

 

Please remember that ELA is positioned to be the association for every company that makes a difference in the industry. There are basically two types of companies that make a difference every day. The largest group is made up of organizations, large and small, that actively participate in ELA.

 

1. They support advocacy efforts with their participation and / or financial resources.

2. They respond to surveys and questionnaires. 

3. They serve on volunteer bodies. 

4. They are presenters - and they do many other things that keep the association going.

 

 

 

          from their ELT Thursday Newsletter

 

“These recommendations also include adjusting the association's dues schedule, which had remained unchanged for a decade, and no longer reflected the realities of the leasing industry, and of the economic situation those realities dictate. The task force recommended that the financial resources to support this value-based position should be based on fair share. That is, all member organizations pay their proportionate fair share of the cost of ELA programs, whether supported by dues or by elective registration/user fees.

 

“The fact is that industry consolidation has left far fewer of the large ELA members that contribute the bulk of the dues, while the basic cost of maintaining the smallest ELA membership is now calculated to be about $2,200, much more than the present minimum annual dues. Without a dues schedule adjustment, this situation is untenable for ELA over the long term.

 

Basically there are no more $1200 “under $10 million” dollars a year in

sales. The “minimum is now $2200 per year (plus an application fee

for new members. Last year, it was $400)..

 

 Over $500 million there is some adjustment and the top maximum under the formula is $33,000 in dues.

 

There is a new “Transitioning Individual Member Flat fee of $600, maximum of 12 months.”

 

“New category of membership -Transitioning Individual.  A person is eligible to be an Individual Member if:

* she/he was, but is not presently, an employee of a regular ELA member company. 

* the application has to be made within two months after concluding active employment in a regular member company. 

* the membership is for a maximum of twelve months, costs $600 and carry no voting rights.”

 

 

“ELA is preparing for what we all hope will be a very good year, a turn-around year for the industry.  In 2003, ELA will sharpen its focus to programs you have said are the most important to a successful company and successful industry.  A year ago, an ELA Positioning Task Force was asked by the board to study the industry, the association and come to conclusions about what the positioning of ELA should be, the common purposes that unite us and what we must work for. Your ELA Board has adopted its recommendations to make ELA a more valuable association to its members. 

 

“What your Board has done in effect is clarify and define who ELA is, how members can most effectively get value from this position and how members can achieve the common purposes that are articulated in the newly developed positioning of ELA. 

 

“Members are clearly saying they value four things from ELA:

* Advocacy - A spokesperson to represent the industry with government and standards bodies on matters critical to product development and the conduct of business.

* Industry Knowledge - Gather, store, analyze, provide and share knowledge related to industry performance, best practices, financial accounting and legal compliance and market strategies.

* Business Development - Develop and sustain business relationships and new business opportunities.

* Access to Capital - An informed and  supportive investment community and access to various funding alternatives.”

 

 

Michael Henderson

Director, Membership & Marketing

Equipment Leasing Association

4301 N. Fairfax Drive, Ste. 550

Arlington, VA 22203

mhenderson@elamail.com.

 

(Leasing News will present information from the panel on the direction of

the major leasing industry association, its direction, and view for 2003.Editor)

 

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Fair, Isaac Declares Quarterly Dividend

 

 

    SAN RAFAEL, --Fair, Isaac and Company, Incorporated (NYSE:FIC), the leading provider of analytics and decision technology, has declared a two-cent per share quarterly dividend payable on December 20, 2002, to stockholders of record on December 3, 2002. The dividend was declared during a meeting of the Company's Board of Directors held on November 14, 2002.

 

    About Fair, Isaac

 

    Fair, Isaac and Company (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power more than 25 billion mission-critical customer decisions a year. Founded in 1956, Fair, Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair, Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health. As of August 5, 2002, the business of HNC Software Inc., a leading provider of high-end analytic and decision management software, is part of Fair, Isaac. For more information, visit www.fairisaac.com.

   

  

    CONTACT: Fair, Isaac

             Investors & Analysts:

             Debbie McGowan, 415/492-5309

             dmcgowan@fairisaac.com

 

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

 

 

Wholesale Prices Have Largest Gain in 2 Years

 

By THE ASSOCIATED PRESS

 

WASHINGTON (AP) -- Wholesale prices shot up by 1.1 percent in

 

October, the biggest leap in nearly two years, catapulted by sharply higher costs for gasoline, cars and trucks. Industrial production plunged by the largest amount in a year.

 

The big jump in the Producer Price Index, which measures prices of goods before they reach stores shelves, came after a tiny 0.1 percent rise in September and a flat reading in August, the Labor Department reported Friday.

 

Separately, production at the nation's factories, mines and utilities fell by 0.8 percent in October, following a 0.2 percent decline the month before, the Federal Reserve reported. It marked the third straight month that industrial activity declined and was the worst showing since September 2001, when industrial production plummeted by 1.1 percent.

 

The latest reading on inflation at the wholesale level far exceeded analysts' forecasts. They were predicting a modest 0.2 percent rise. The industrial production report, meanwhile, also was much weaker than the 0.3 percent decline analysts were expecting.

 

On Wall Street, stocks moved lower. The Dow Jones industrial average lost 38 points and the Nasdaq was off 22 points in the first half hour of trading.

 

October's 1.1 percent increase in the PPI marked the largest advance since January 2001, when wholesale prices went up by the same amount.

 

Excluding energy and food prices -- which can swing widely from month to month -- the ``core'' rate of inflation rose by a sizable 0.5 percent in October, the worst showing since September 1999, and a big pickup from the small, 0.1 percent increase posted the month before.

 

While the PPI report was surprising to economists, they didn't believe it flashed a danger signal that the country was on the path to the twin evils of weak economic growth and upward spiraling inflation.

 

``We are not in danger of stagflation: a weak economy and rising prices,'' said economist Ken Mayland, president of ClearView Economics. ``I think the big price increases we saw in October -- gasoline and automobiles -- are reversible. We probably won't see them in November,'' he added.

 

Worried that the economic recovery might be in danger of stalling out, the Federal Reserve last week cut a key interest rate by a bold, half a percentage point, marking the first rate reduction of this year and the 12th since January 2001.

 

Federal Reserve Chairman Alan Greenspan, testifying on Capitol Hill on Wednesday, suggested that he is not worried that currently low interest rates would sow the seeds of inflation. And, he said the Fed can quickly reverse course and begin raising interest rates to make sure that the extraordinarily low interest rates of the past year do not drive prices higher.

 

In October, energy prices galloped ahead by 4.2 percent, following a 0.9 percent increase the month before. Much of October's rise in energy costs reflected skyrocketing gasoline prices, which soared by 17.9 percent, the biggest increase since March.

 

The Labor Department said that excluding the big rise in gasoline costs, overall wholesale prices rose by 0.6 percent, rather than the 1.1 percent spike.

 

The report also showed that the price of new cars rose 2.2 percent in October, the biggest increase since September 1990, and new truck prices went up by 1.9 percent, the largest advance since July. But those price increases may have been distorted by the annual introduction into the PPI of new models of cars and trucks, which tend to be more expensive.

 

The government said that overall wholesale prices -- excluding new car and truck prices as well as volatile food and energy prices -- nudged up by just 0.1 percent in October.

 

Food prices also rose sharply in October, increasing by 0.7 percent, a big turnaround from a 0.6 percent drop in September. Price increases were widespread and were led by a 11.5 percent rise in pork prices, the largest advance since January 1999.

 

In another report, businesses increased their stockpiles of unsold goods by 0.5 percent in September, the biggest advance since November 2000, the Commerce Department reported. That followed a tiny 0.1 percent increase in August.

 

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If Higher Rates Loom, Will the Fed Twist?

 

by Floyd Norris, New York Times

 

Come on, let's twist again, like we did last century.

 

Alan Greenspan this week brought back memories of "Operation Twist," the last time the Federal Reserve he now leads set out to manipulate long-term interest rates.

 

Testifying on Capitol Hill, Mr. Greenspan was reminded that the federal funds rate — the short-term rate the Fed controls — is down to 1.25 percent. What could the Fed do if it needed to ease monetary policy when rates were already near zero?

 

 

It could buy long-term Treasuries, the chairman replied. "As a consequence,

 

there's virtually no meaningful limit to what we could inject into the system were that necessary."

 

Mr. Greenspan gave no hints he was planning to do any such thing. But it is an interesting idea and may come back if the current "soft spot" in the economy, as Mr. Greenspan described it, turns out to be quicksand.

 

The original Operation Twist was conceived in 1961 by the Kennedy administration, which felt a need to lower long-term rates to stimulate business investment, while at the same time raising short-term rates to deal with a current account deficit that was putting pressure on the dollar. Thus the "twist" on interest rates.

 

The twist was not wildly successful, but neither was it a clear disaster. The dollar survived another decade before it had to be devalued as the era of fixed exchange rates ended. And a long period of economic growth began in 1961.

 

But it is not hard to understand why Mr. Greenspan would be thinking about long-term rates. The current economic recovery, choppy and tentative as it is, is dependent on long-term rates' not rising, and it may even need further declines. Since businesses over invested in the boom and are still looking for ways to cut costs, the housing market has become the engine of growth. Rising home prices make consumers feel wealthier and willing to spend, and refinancing mortgages gives them the cash to do so.

 

One key to the strength of the housing market is that buyers and sellers of homes look at prices differently. The seller thinks the home sells for, say, $275,000. The buyer focuses on the monthly payment after the down payment: $1,499 on a 30-year, $250,000 loan at 6 percent. In 1990, with 10 percent mortgage rates, that same monthly payment covered a $160,000 loan. A drop of four percentage points has allowed buyers to get a 56 percent larger loan.

 

Were mortgage rates to rise now, the economic stimulus from refinancing would vanish. Then people with adjustable rate mortgages would have to pay more. Finally, the higher mortgage costs could make so many buyers unable to pay current prices that those prices would fall. And that wealth effect could cause consumers to cut back on spending far more than they did after their stocks lost value.

 

The aftermath of the bubble can be seen in the disarray of companies like  Lucent and in the determination of nearly all companies to control capital spending. This economy needs consumers to keep spending until those imbalances are worked out, and there is no telling how long that will be.

 

At the moment, consumers are becoming even more important. The federal government can run deficits as it pleases, but state and local governments are being forced to reduce spending and raise taxes. That will apply an economic drag.

 

The odds still favor the economy's staying out of recession, and there is no obvious reason to expect higher rates any time soon. But it is understandable why the Fed would be nervous. Higher long-term rates could badly damage this economy. Mr. Greenspan could yet be called upon to do the twist.

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More Borrowers Defaulting on Cards

 

ABSNet.net

 

The ailing economy has led to increased defaults among securitized credit-card accounts.

 

After improving steadily over the last six months, the amount of charged-off collateral backing credit-card securitizations started rising again during the month ended Oct. 15. According to S&P's monthly survey, the amount of accounts deemed uncollectable jumped 22 bp during that stretch, to 6.78%.

 

Naturally, transactions involving sub prime borrowers were hit hardest. For example, losses among Metris Cos.' issues have been soaring over the last six months or so, to 16.5% as of mid-October. Moody's and Fitch recently slashed their ratings on $4.2 billion of the company's ABS, and S&P is reviewing Metris' securities for downgrades.

 

Cardholders are also finding it harder to pay their bills on time. S&P's index showed that the volume of collateral accounts falling more than 30 days past due jumped 24 bp during the September-October period, to 5.4%.

 

For the most part, excess spreads remain sufficient. But rising losses are starting to take their toll. The average spread on credit-card securities dropped to 7.2% as of mid-October, down 21 bp from a month earlier. Excess spread represents an issuer's profits and acts as the first layer of protection for bondholders.

 

S&P's index measures a number of performance factors for $385 billion of securitized credit-card receivables. A link to the full report on the index can be found in the Addendum section of ABAlert.com.

 

 

News Briefs---

 

WorldCom Inc. named Michael D. Capellas, the former president of Hewlett-Packard, its chairman and chief executive today.

----

 

HSBC to buy Household International for $14.2 billion

CHICAGO (AP) HSBC Holdings PLC announced a $14.2 billion deal Thursday to buy Household International Inc., which owns the Beneficial and Household Finance brands and is the largest independent consumer finance company in United States, labeled the biggest mortgage lender to people with blemished credit histories in the United States.

 

--

Dell posts 31 percent hike in third-quarter income

DALLAS (AP) Dell Computer Corp. reported rising sales and profits in the third quarter and predicted it would make further gains during the holidays, despite a sluggish economy and concern about consumer spending.

--

 

Chip-maker AMD to cut 2,000 jobs

SAN JOSE, Calif. (AP) Advanced Micro Devices Inc., battered by weak demand for computer chips and tough competition, said Thursday it will cut 2,000 jobs, or 15 percent of its work force.

 

--

Lehman Brothers lays off 500 employees, including top strategist

NEW YORK (AP) Lehman Brothers Holdings Inc. cut its ranks by 500 employees on Thursday, including its chief investment strategist Jeffrey Applegate, a person familiar with the matter said.

 

--

 

Credit Lyonnais earnings slip in third quarter

PARIS (AP) Credit Lyonnais SA, France's fourth-biggest listed bank, saw its net earnings plunge 26.5 percent in the third quarter to a worse-than-expected 145 million euros ($146 million), after booking a 75 million euro ($76 million) writedown on its share investments.

--

 

Failed online lender NextCard Inc. goes bankrupt

SAN FRANCISCO (AP) Failed online credit card issuer NextCard Inc. sought bankruptcy protection Thursday in a last-ditch attempt to come back as a financial services consultant.

 

--

 

House Passes Revised Bankruptcy Bill

Abortion-Related Provision Dropped After Earlier Bill Is Scuttled

(Washington Post) After handing the business community a stunning defeat yesterday by scuttling legislation intended to make it harder for consumers to wipe out debt through bankruptcy, House Republican leaders regrouped early this morning and came up with a new bill that dropped a controversial abortion clinic provision and passed it. The revised bill now goes to the Senate, where foes of the GOP leadership's maneuver said it will die.

.

 

--

 

Bush administration targets 850,000 federal jobs to open for private sector bids

WASHINGTON (AP) President Bush plans to subject as many as 850,000 federal jobs to competition from the private sector, administration officials said Thursday, a sweeping reform long sought by Republicans and stiffly opposed by labor unions.

--

 

Starbucks reports jump in profits

SEATTLE (AP) Starbucks Corp. on Thursday reported a 10 percent jump in fourth- quarter profits and a 29 percent increase in retail sales.

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Will the West Coast Finally Get the Trophy?

 

 USC's Palmer has numbers and momentum, but is anyone west of Vegas paying attention?

 

(Home Coming this Weekend!!!)

 

By Bill Plaschke,Los Angeles Times Sports Columnist

 

For more than six decades, college football's immortal award has been

accompanied by an eternal question.

 

Exactly who is that little bronze guy stiff-arming, anyway?

 

For 21 years, it has appeared to be the West Coast.

 

This fall, it definitely is Carson Palmer.

 

The leader in the Heisman Trophy race should be college football's hottest quarterback directing one of its hottest teams through the sport's toughest schedule.

 

But Eastern bias is shoving him to the sidelines.

 

In the last five games, no quarterback has been better, no running back has had as much impact, no other player has stepped to the front of the Heisman race with such grit and grace.

 

But to hundreds of the 1,050 voters, he is little more than the guy flickering above them on a muted TV screen as they chow their postgame tri-tip.

 

Carson Palmer is not discussed by the old-timers sitting at Bobby Bowden's feet, not examined by the young bards hanging around Mack Brown's office, not understood by the bundled masses waiting to forgive Joe Paterno's next referee rant.

 

Carson Palmer is not touted by an ESPN network that does not televise Pac-10 games, and rarely touches the radar screen of Web site guys who never leave the couch.

 

And he is not alone.

 

Since Marcus Allen became the last West Coast player to win one in 1981, the Heisman Trophy has become the most regionally biased and unfair award in sports.

 

During that time, every other major sport has awarded its top honors to West Coast athletes.

 

Even the skating-rink-sized NHL is less parochial than a sport whose major award that is based not on how you play, but where you play, and what time, and will the Ann Arbor cable company be showing it?

 

"My shot of winning a Heisman Trophy is so slim, I don't even think about it," Palmer said earlier this week. "It's very, very rare that I would have a chance. That's just how it works."

 

Since 1981, here's precisely how it has worked:

 

• Herschel Walker has beaten John Elway.

 

• Gino Torretta has beaten Marshall Faulk.

 

• Eric Crouch has beaten Joey Harrington and David Carr.

 

And so on.

 

When individual excellence occurs on the West Coast in any other sport, even if Shaquille O'Neal doesn't sometimes agree, it is generally recognized.

 

When it occurs out here in college football, it's Happy Hour in Tuscaloosa and nobody is paying attention.

 

If you don't believe me, then listen to college football's patron saint:

 

"I have always been very tender on the point that, I think the West Coast guys get screwed," Keith Jackson said. "I still do."

___

 

Ken Dorsey of Miami? Carson Palmer has thrown for nearly 500 more yards than Dorsey, and has a much higher completion percentage.

 

Willis McGahee of Miami? He wouldn't even be leading the Pac-10 in rushing.

 

Brad Banks of Iowa? Palmer has completed 71 more passes and thrown for 477 more yards.

 

Chris Brown of Colorado? In the Buffaloes' two losses, he averaged 3.8 yards a carry.

 

Byron Leftwich of Marshall? He has been injured.

 

Those are the top Heisman candidates in most polls, yet Palmer has better numbers than any of them.

 

"And nobody has played a tougher schedule since Germany in World War II," said college football expert Beano .

 

Then there's Jason Gesser of Washington State, Palmer's West Coast rival. In the last five games, Palmer has thrown for 369 more yards and four more touchdowns.

 

The biggest number hurting Palmer is the Trojans' two losses.

 

But this is not an MVP award, right?

 

"That's not how it was designed," Jackson said. "When it first started, it was for the best player. Because everybody played both ways, it was easy."

 

But today?

 

"Specialization has made it just about impossible to say who is the best player in the country," Jackson said. "But Carson Palmer is as good as any player I've seen."

 

On the other side of the country, Cook agreed that Palmer should have a chance.

 

"If he beats UCLA and has a good game against Notre Dame, he can win it," Cook said. "I get the impression that voters just don't want to vote for Dorsey, and they are looking for any reason to vote for somebody else."

 

Palmer certainly can win it.

 

If indeed the Trojans go 10-2 and he plays well against Notre Dame on national television, he should win it.

 

But will he win it?

 

Acknowledged Cook, "I don't think anybody gets up in the morning and says they're not going to vote for the West Coast guy. But I do think people would rather vote for people closer to home."

 

Sighed Jackson, "College athletics are the only endeavor in the world where provincialism is a strength."

 

Therefore, to appreciate the Nebraska sea of red, and Florida swamp, and the Columbus High Street party, one must accept that the same boosterism can also taint.

 

This column may appear to be born of the same boosterism. But those around town know that this space has consistently been tough on Palmer and the rebuilding USC program, even as recently as the loss to Kansas State.

 

Then, suddenly, the quarterback who wasn't even touted on his team's media guide cover began playing like the potential No. 1 draft pick in the nation. And his teammates followed.

 

Or, as Jackson said, "This hasn't always been true in times past, but right now, Carson is as good as anybody I've seen."

 

This isn't about favoritism. It's about fairness.

 

And it would be yet another chapter in a history of Heisman hilarity if Palmer weren't given a fair chance.

 

"The record speaks for itself," said Tom Hansen, Pac-10 commissioner whose league traditionally produces more NFL players than any other. "Looking at the pro rosters, there's a good deal of evidence that we've had great football players out here. That none of them has won a Heisman since 1981, there's something very dysfunctional in that."

 

The problems begin with the actual balloting, 175 voters each in six regional sections, writers and broadcasters and former Heisman winners.

 

Three of those sections are in the Eastern time zone, only one is in the Pacific time zone.

 

And, although the identity of the voters is kept quiet, it seems to be based on an old-boy network that has somehow, incredibly, excluded folks such as Chris Dufresne, The Times' nationally acclaimed college football writer.

 

If a guy who sees as many games as anybody in the country while working for the nation's second- largest metropolitan daily newspaper does not vote ... who does?

 

(Actually, our sports editor, Bill Dwyre, has a vote, but I'm not going there ... )

 

With so many of those voters on the East Coast, and perhaps many of them out of touch with weekly games, television is now essential for fairness.

 

Yet the Pac-10 televises its games on a network — Fox Sports — that does not reach as many East Coast homes as college football's most important network.

 

In fact, one could correlate the disappearance of West Coast Heisman winners with the emergence of a ESPN as a Saturday afternoon monster.

 

The ESPN announcers can make a Heisman candidate with their "College Game Day" patter. Yet they don't visit the Pac-10 schools and don't televise Pac-10 games.

 

"It's preposterous to think that we are hurt by Fox," Hansen countered. "We get great national coverage from them."

 

Besides, he said, "Every time we talked to ESPN about a contract, they could not offer us good time slots, and therefor not as much income."

 

So the Pac-10 is huge in Seattle and San Diego.

 

But in Atlanta a couple of years ago, the lack of TV exposure led to a typical Heisman bias story.

 

Several Heisman voters, accompanied by Dufresne, had finished covering an SEC game and were relaxing at an Atlanta hotel bar, watching a late UCLA game featuring Cade McNown.

 

The Bruins were trailing, and McNown was struggling, when the bar closed at 1 a.m. EST.

 

By the time the voters had returned to their rooms and prepared for bed, McNown had led the Bruins on an amazing comeback.

 

But because the room televisions did not pick up the Fox feed — few hotels do — the voters never saw it.

 

Later that fall, McNown was voted the nation's top quarterback by a couple of organizations but finished third in the Heisman voting behind Ricky Williams and Michael Bishop.

 

Michael Bishop?

 

"To some extent, when it comes to the Heisman Trophy, we have to just say we are never a factor and can never get our hopes up," Hansen said.

 

All of which has USC Coach Pete Carroll, still relatively new to this funky college stuff, shaking his head.

 

"Carson Palmer is the best player, playing against the toughest schedule," he said. "What more do you have to do?"

 

Four things, actually.

 

Beat Arizona State. Beat UCLA. Beat Notre Dame.

 

Then hope folks look up from their deep-fried provincialism long enough to notice.

 

Bill Plaschke can be reached at: Bill.Plaschke@latimes.com.