Leasing News

Bruce McKeel, vice president and general manager, equipment finance division of Prescott, Ball & Turben, San Francisco, Calif. Bruce has been in the leasing industry since 1972, and has held the positions of vice president at HBE Leasing Corp. and regional vice president of lease underwriting at ‘Equilease Corp.

He holds a B.S. degree from the University of Oregon and did graduate study at New York Institute of Finance and Stanford University. He was also special gifts vice chairman for the Bay Area United Way in 1978.

McKeel lives with his wife Lynn, an office space designer, in the lovely suburb of Hillsborough, CA, and enjoys music and as much golf as he can mange to squeeze in his spare time.

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Classified Ads---

“I just secured a leasing position and should be back

to work on Feb. 10, 2003. Please cancel my "Job Wanted" ad.

“ Although this position came through my network of

contacts and not through my posting on your website, I did have an

opportunity to talk to some great folks and I really appreciate the assistance you

provided.”

Regards,

Steven Muller

aka leaseman222@yahoo.com.

Here are current “Help Wanted” Ads

Sales: LCA is a national equipment leasing company seeking results-oriented, qualified sales professionals with outstanding performance in the lease industry. We offer competitive salary, commissions and benefits. Fax: 248-524-0267 email: kbernia@leasecorp.com

Sales: Small ticket leasing reps, General equip. & medical, Municipal Vendor leads are provided.

Fred St Laurent freds@bwresults.com

SALES: Lessor/Broker seeks experienced small - mid ticket reps (IT, Furniture, Telcom, Medical and General), 2 in CA, 2 Nationally and 2 in NE. Must have a book of business. Qualified Vendor leads available, strong commission & support, Draw and benefits. Call 617-641-9628 ext.11 or email MarkG@IntegrityLeasing.com

Sales: Lessor/Broker-Arizona- need experienced mid-market salesperson, location open, strong medical bkrnd pref. Top comm, draw, benefits. Call John Torbeson 888 607 6800 john@odysseyequipfinance.com

Jobs Wanted: http://65.209.205.32/LeasingNews/JobPostings.htm

American Express Business Finance—Don’t Leave Your Home, Leave Our Office

“It is true AMEX has terminated all of their sales assistants. I know

several people who work for them and things are very unsettled. The sales

personnel are responsible for their own processing and the documentation

process is supposed to be moved in house in February. Based upon prior

experience with them and the feedback from the associates still there,

service in the future is a big ????.

“There are really good people leaving and looking for employment. They are

scattered throughout the U.S. and looking for jobs. I know of one

individual in Tennessee looking and she is really good. It is sad to see

the way they treat their employees.

“Please do not publish my name. Management would be able to determine the

employees I know and where the information has been divulged.”

(name with held )

Leasing News welcomes any comment by American Express Business Finance.

FirstCorp----Not Available

Leasing News has confirmed that First Corp is Closing the Portland, Oregon Office.

First Portland Corporation is closing its Portland, Oregon office. Spokesman will

not deny this, but have confirmed negotiations regarding the portfolio, meaning

assets and liabilities, are at attorney’s office in “final draft” form.

Located at: 7145 SW Varns Street

Portland OR 97223.8057

USA

Tel: 800.247.3722

Fax: 888.510.1500

Leasing News was informed Jim Merrilees was leaving the company before the decision was made to close the operation. The opportunity to establish a vendor/

captive lessor/wholesale program with Netbank came up from a close friend

of his, who helped open the door. Merrilees will not confirm nor deny this

and appears to be unavailable for comment at this time. This story was told

to Leasing News several times and we believe is accurate as they came

from reputable sources.

If the negotiations are not completed, Leasing News is informed Firstcorp will

be shut down such as Humboldt Bancorp closes Bancorp Financial. Their website

states “Since 1981, First Portland Corporation DBA FIRSTCORP has specialized in equipment finance and leasing solutions for broadcasting.”

Another section advertised:

“FOR MORE INFORMATION OR TO RECEIVE A PROSPECTUS, CALL:

· 1 to 5 year notes ($5,000 minimum)A national leasing company with a

20 year history Offered by First Portland Corporation

· Interest paid monthly, quarterly,

semi-annually or annually

EARN UP TO 10.5%

FIXED RATE INVESTMENTS

SALES ARE BY PROSPECTUS ONLY. INVESTMENTS ARE SUBJECT TO CERTAIN SUITABILITY STANDARDS, ARE NOT INSURED OR GUARANTEED BY ANYONE. PLEASE CONSULT YOUR FINANCIAL ADVISOR BEFORE MAKING THIS OR ANY OTHER INVESTMENT DECISION.

(503) 684-3417 (local) or email FIRSTCORP

DAN KILINSKI (800) 247-3722”

( He was not available when we called. We asked to speak with the leasing department, and the operator told us no one was available at the time, but

to leave our telephone number, which we did. editor)

http://two.leasingnews.org/cartoons/call_important.jpg

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Ken and Sean Wheeler Misrepresentation

“I received today, totally unsolicited, a fifteen page fax from Equipment

Financing group, Fresno, CA, representing themselves as a funding

source. I am sure I was one of many send out unsolicited. Any

information I receive where I can not tell who the contacts are or other

significant information about, does not pass my "smell" test. The cover

page includes the ELA and UAEL logos. I check both member lists an this

company is not listed. I checked out their website and find that the

contact is Ken Wheeler, enough said.

“I would hate to see people get hurt by these guys who misrepresent

themselves as ELA and UAEL members. I think ELA, in particular, should

know about their use of the ELA logo since they have the legal resources

to stop its use.”

Steven B. Geller, CLP

Leasing Solutions LLC

20 Dike Drive

Wesley Hills, New York 10952

845-362-6106

fax 845-354-2803

cell 914-552-0842

www.leasingsolutionsllc.com

(The membership directory of the United Association of Equipment Leasing and

Equipment Leasing Association does not list the company as a member, or Mr.

Ken Wheeler. Leasing News double-check Mr. Geller’s observation. There does not appear to be an application, but that is besides the point, as they are not a member and should not advertise that the Equipment Financing Group of Fresno are members.

We have a copy of a mailed “manual” with all the forms, and it basically matches

the forms that 1stLease under Sean Wheeler at one time produced. Leasing News

has reports from brokers who are having difficulty with a company called Capital

Bank Leasing in Reedly, California that has Sean Wheeler’s name involved. We

are working on a story regarding leases not funded by this company, and hope

to have a report soon. We hope to have all sides to the story.

For more information, please go to previous stories at:

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Two plead guilty for roles in PinnFund/PinnLease scheme

By Associated Press

SAN DIEGO (AP) Two former executives of a mortgage-lending firm pleaded guilty Thursday to federal charges for their roles in a massive Ponzi scheme that resulted in losses of more than $200 million for investors.

Keith Grubba, the former president and co-owner of PinnFund USA, admitted that he conspired with PinnFund partners to deceive investors and filed false income tax returns seeking to avoid $2.5 million in payments. Grubba faces up to 30 years in prison when he is sentenced in April.

Michael Trap, a former manager of a related company, PinnLease USA, admitted lying to a federal grand jury investigating the scheme. He faces up to five years in prison when he is sentenced in April.

PinnFund, based in Carlsbad, Calif., collected investments for five years before being shut down by court order in March 2001 following a federal investigation. Investigators said much of the money collected went to support the lavish lifestyle of PinnFund's chief executive, Michael J. Fanghella.

Fanghella pleaded guilty last year to tax evasion and conspiracy to commit fraud and money laundering. He is to be sentenced on Monday and faces up to 30 years in prison.

Four others connected to the case were indicted on Thursday.

http://www.leasingnews.org/docs/Pinn_1.htm

GATX Corporation Reports 2002 $29.4M 4th Q Loss

CHICAGO, -- GATX Corporation announced Thursday its 2002 fourth quarter and full year results. For the 2002 fourth quarter, GATX reported a net loss of $29.4 million or $.60 per diluted share compared to a net loss of $12.1 million or $.25 per diluted share in the prior year period. For the full year, GATX reported net income of $.3 million compared to $172.9 million or $3.51 per diluted share in 2001.

The 2002 fourth quarter and full year results include a number of one-time and air-related items which are detailed in an accompanying table. Significant 2002 fourth quarter items include $18 million of after-tax impairment charges on aircraft including GATX's 50% share of an impairment charge on Fokker aircraft owned by Pembroke, an $11 million after-tax charge for a reduction in workforce due to the company's exit of the specialty and venture businesses and company-wide reorganization, and a $9 million after-tax write-down of goodwill associated with the company's exit from the venture leasing business.

Ronald H. Zech, chairman and president of GATX, stated "Results for the 2002 fourth quarter and full year reflect the challenges we continue to face in our markets. The rail and technology sectors continue to mirror weak economic conditions, and volatility and uncertainty remain in the air sector. We have offset some of this pressure by aggressively maintaining asset utilization, reducing costs, and maximizing our liquidity position, but we cannot entirely overcome larger market forces.

"Although financial results for the year were disappointing, a number of steps taken in 2002 provide a basis to leverage our performance as underlying markets recover:

full press release at:

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=GMT&script=410&layout=-6&item_id=376689

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CIT is Stable—Fitch Report

(Leasing News has been reporting this for quite some time as CIT has

it together, especially in these very rough times.)

NEW YORK----Fitch Ratings affirms CIT Group Inc.'s (CIT) and related entities' senior debt, subordinated debt, preferred stock, and commercial paper ratings at 'A', 'A-', A-', and 'F1', respectively. The Rating Outlook is Stable. Approximately, $32 billion of debt and preferred stock are covered by Fitch's actions.

Since returning to the public equity markets in July 2002, CIT has successfully improved several key elements of its risk profile including liquidity, capitalization and leverage. Additionally, in spite of weak loan demand and heightened credit losses, CIT's operating results have remained solid. Continued improvement in all metrics, particularly capitalization and leverage, is expected as internal capital is projected to grow at a faster rate than managed assets. Given the increased risk in the operating environment, particularly event risk, it is prudent for CIT to maintain its unadjusted tangible equity divided by managed assets ratio above 10% going forward. At Dec. 31, 2002, this ratio stood at 9.78% up from 9.30% at Sept. 30, 2002.

Fitch remains concerned regarding CIT's asset quality. CIT's credit metrics are significantly worse in the 2001-2002 period than during the last domestic recession, 1992-1994. While some of the current weaker asset quality is due to business mix, credit losses in CIT's equipment finance unit, a charter business, are believed to be at an all-time high. Much of the problems encountered in equipment finance have been due to a change in the market as a result of equipment deflation. Cash recoveries from equipment repossessed in 2002 has been roughly 50 cents on the dollar versus 80 cents in previous periods according to management. While management believes that asset quality began to firm and improve in the equipment finance in the December 2002 quarterly period, as reflected by trends in the inflows of delinquent and non-accruing loans as well as internal risk rating scoring data, the domestic economy remains fragile. Other portfolios of concern include telecommunications and venture capital. Although smaller than equipment finance, the loss severity could be substantially higher. Fitch notes that CIT's revenue stream to date has been sufficient to allow the company to manage through its problems. Nevertheless, Fitch will be closely monitoring the inflows of loan delinquencies and non-performing assets in 2003 as part of its assessment of credit quality.

Relative to other aircraft leasing companies, CIT does not have significant new equipment placements or lease expirations in 2003. However, CIT does have sizable exposures to US Airways Group and UAL Corp. (UAL), plus it is a participant in the $1.2 billion debtor-in-possession loan to UAL. Although all of CIT's aircraft loans and leases are secured, the company is exposed to equipment impairment and this could be significant if a major airline is liquidated. CIT placed $96 million of its UAL loans on non-accruing status in the December 2002 quarter. Revenue received from UAL going forward will be used to reduce loan balances.

In addition to asset quality, Fitch continues to closely monitor CIT's liquidity and access to the public asset-backed securities term markets. Aside from cash needed to operate the business, Fitch estimates that at Dec. 31, 2002, CIT had available liquidity, including unused conduit facilities, of approximately $4 billion. CIT projects that it will complete two asset securitizations, home equity and equipment finance, during the first half of 2003. The completion of these transactions is important as the establishment and commitment to utilize off-balance sheet sources of liquidity, particularly ABS, by CIT were key drivers in Fitch's decision to raise the company's ratings to current their levels on July 2, 2002.

Based in Livingston, N.J., CIT Group Inc. is one of the largest commercial finance companies in the world with managed finance receivables and operating leases of almost $50 billion Dec. 31, 2002. CIT has leading market positions in a variety of business segments.

Fitch has affirmed the following ratings:

CIT Group Inc.

-- Senior debt 'A';

-- Subordinated debt 'A-'

-- Preferred stock 'A-'

-- Commercial paper 'F1'.

-- Rating Outlook Stable.

Newcourt Credit Group Inc. (Guaranteed by CIT Group Inc.)

-- Senior debt 'A';

-- Rating Outlook Stable.

Newcourt Financial (Australia) Ltd. (Guaranteed by CIT Group Inc.)

-- Senior debt 'A';

-- Commercial paper 'F1';

-- Rating Outlook Stable.

AT&T Capital Corp. (Guaranteed by CIT Group Inc.)

-- Senior debt 'A';

-- Rating Outlook Stable.

CONTACT:

Fitch

Philip S. Walker, Jr., CFA, 212/908-0624

John S. Olert, 212/908-0663, New York

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CIT Small Business Lending President John Canning Recognized as One of Top

25 Most Influential People in Small Business Lending

LIVINGSTON, N.J.,-- CIT Small Business

Lending (SBL) Corporation, a New Jersey-based subsidiary of CIT Group Inc.,

(NYSE: CIT), and the nation's number one SBA lender, proudly announced today

that CIT SBL President John Canning has received a special recognition as one

of the most influential leaders in the small business lending industry. The

recognition was bestowed by The Coleman Report -- a leading news information

source for the SBA lending industry.

John Canning was honored for his successful leadership at CIT Small

Business Lending despite the increasingly challenging industry landscape,

which has put pressure on a number of other non-bank lenders. CIT SBL has

been consistently ranked among the top SBA lenders in the country, holding the

number one spot for the last three years.

"Mr. Canning has been instrumental in steering the company through a

number of different parent companies, while maintaining the organization's

consistency and focus in the marketplace," said Robert Coleman, publisher of

the Coleman report. "CIT Small Business Lending has been the number one

lender for three years in a row and continues to set industry standards in

loan generation"

"I am extremely honored by this recognition and accept it on behalf of our

entire small business lending team," said Mr. Canning. "CIT SBL has been

supporting American small businesses for more than a decade and our goal is to

continue to help entrepreneurs realize the dream of owning their own

business."

About CIT Small Business Lending Corporation (SBL)