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About Pulse
Publisher Ron Caruso has been reporting on the equipment financing industry for more than 25 years. Pulse features his knowledgeable analysis of news, trends and current economic or regulatory issues having an impact on commercial financing.
Pulse also features people in the news, business opportunities and Ron's personal wine recommendations.
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Recent Editions
Business News Impacting the Leasing Industry
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Alta Group Announces Partnership With European Asset Management Firm |
| The Alta Group has announced that Asset Lifecycle Management Limited
(ALM), a provider of asset management services and consultancy to banks
and leasing companies in the UK and Europe, has become a business
partner of the Group. ALM was established in 2002, by John Evans and Jim McGovern. The company specialises in physical asset portfolio management for the leasing and asset finance industry. Both Evans and McGovern have extensive experience in the banking and asset finance business and bring a level of knowledge to the systemization of asset management that is second to none. Derek Soper, European chairman and principal of The Alta Group, commented "As Alta expands its customer base across Europe it is inevitable that we find areas of required expertise which we do not already have within the Group. Asset Lifecycle Management brings specialist expertise in the whole field of asset management, from the setting and monitoring of residual values to issues arising from the reporting requirements under Basel II. Our clients will benefit hugely from this addition to our range of services." |
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Mosaic International Corporation expands Passport To Canadian Leasing Program |
| “We’ve been providing equipment leases for Canadian businesses,
municipalities and federal departments since 2003,” said Jim Woods,
Mosaic International’s Co-founder and Senior Vice President of Canadian
Markets. “We’ve expanded our Passport To Canadian Leasing Program to
accept brokerage business from U.S. based equipment leasing companies.
Before expanding the program we spoke with small and large leasing
companies and learned that most of them receive Canadian lease requests
but turn the business away because they didn’t have a funding source in
place. This is the business we want to capture. “ Woods added, “Our Passport program consists of a commercial and government leasing program. Our commercial program is directed towards “A” credit lease transactions for equipment costing from $10,000 to $1,000,000+ that is moveable, identifiable and offers lessees a revenue-generating or expense-saving contribution. Our government program offers equipment leasing to municipalities, provincial and federal departments including crown corporations. Most equipment can be leased including software. Our Canadian program covers all provinces and territories but has restrictions in the province Quebec.” “We understand that vendor relationships are vital to the success of most leasing companies. Our Passport program is another sales tool they can provide their vendors who have customers in Canada. We have no volume requirements. We’ll work with leasing companies that receive one Canadian deal a year or thirty a month, “ said Woods. Woods concluded, “The Mosaic team is excited about this expansion. It’s not everyday you get to break new ground in an industry as established as this one is.” For more information on Mosaic’s Canadian Passport Program, visit www.mosaicleasing.com. |
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Research and Markets Announces New Global Truck Leasing Guide |
| Research and Markets has announced the addition of Truck Leasing:
Global Industry Guide to their offerings. This analysis of the truck leasing includes detailed data on market size and segmentation, textual analysis of the key trends and competitive landscape, and profiles of the leading companies. This incisive report provides expert analysis on a global, regional and country basis. Scope of this Publication includes: - An executive summary and data on value, volume and segmentation Highlights of this title: The global truck leasing market generated total revenues of $17.7 billion in 2005; this represents an increase of 3.8% on the previous year's value and a compound annual growth rate (CAGR) of 4.6% for the five-year period spanning 2001-2005. Product differentiation in the truck leasing market is low, therefore
companies offering extended services will see their revenues grow. The truck leasing market is defined as all operational leasing agreements with terms longer than one year. Only trucks of above 3.51 tonnes gross vehicular weight are included. The market value is measured in terms of the lessors income before any taxes and levies. Any currency conversions used in the creation of this report have been created using constant 2005 annual average exchange rates. The geographical coverage is broken down as follows: For more information visit http://www.researchandmarkets.com/reports/c40894 |
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SENIOR LEVEL EXECS IN THE U.S ON THE MOVE |
| According to a study by Liberum Research in New York, top executives at U.S. companies switched jobs more than twice as often in the first half of this year as in 2005. A total of 15,650 managers from CEOs to VPs changed jobs in the first half of this year, as compared to 6,489 in the same period of 2005. Issues such as compliance with the Sarbanes-Oxley Act of 2002, increased public scrutiny and shareholder demands for performance were cited as reasons that may be leading some executives to retire early, or in some cases being forced out. |
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SPITZER ANNOUNCES NEW FINANCIAL INSTITUTION SETTLEMENTS-DEALS DONE FOR NORVERGENCE CUSTOMERS |
| Relief From Fraudulent Contracts Now Tops $20 Million Attorney General Eliot Spitzer today announced settlements with seven additional financial institutions in connection with a widespread telecommunications fraud involving NorVergence, Inc., a bankrupt New Jersey-based telecommunications company. Under the terms of the newly announced agreements, Popular Leasing USA, Inc.; Celtic Bank Corporation; Dolphin Capital Corp.; Liberty Bank Leasing; National City Commercial Capital Corporation, formerly known as (f/k/a); Information Leasing Corporation; Alfa Financial Corporation d/b/a OFC Capital; and Partners Equity Capital Company LLC d/b/a Commerce Commercial Leasing, LLC will forgive over $3.5 million in payments due from 159 New York customers, who signed long-term contracts with NorVergence. Pursuant to the agreements, six of the leasing companies have offered customers 87.5% to 90% forgiveness of their balances as of July 15, 2004 under the NorVergence Equipment Rental Agreements, while Popular Leasing USA, Inc. offered customers 80% to 100% forgiveness, based on when they signed their contracts. "I would like to commend these financial institutions for offering relief to those small business owners who were duped by NorVergence’s false promise of savings," said Spitzer. Thirteen other financial institutions previously reached agreements with the Attorney General’s office regarding leases they acquired from NorVergence. Including the settlements announced today, a total of 854 NorVergence customers from New York have received over $20 million in relief. The chart below outlines the terms of the new settlements: LEASING COMPANY TOTAL DOLLARS FORGIVEN & SETTLEMENT THRESHOLDS: Popular Leasing USA, Inc. $1,519,545 80%- 100% Partners Equity Capital Company, LLC d/b/a Commerce Commercial Leasing, LLC $573,761 87.5 - 90% Liberty Bank Leasing $53,322 87.5 - 90% Celtic Bank Corporation $35,498 87.5 - 90% Alfa Financial Corporation d/b/a OFC Capital $411,273 87.5 - 90% National City Commercial Capital Corporation, f/k/a Information Leasing Corporation $817,700 87.5 - 90% Dolphin Capital Corp. $129,788 87.5 - 90% Under the settlement agreements, the financial institutions also are forgiving any late fees, penalties and property insurance charges imposed after termination of contracted services, and are crediting any payments made after service was terminated. The financial institutions will issue refunds to customers where payments exceeded amounts due under the settlements and will terminate all litigation and withdraw any adverse credit reports against former NorVergence customers who elect to participate in the settlements. Popular Leasing USA, Inc. will also offer substantially similar settlement terms to customers who have already settled on less favorable terms. Notices regarding potential legal actions have also been previously sent by the Attorney General to Thomas Salzano and Peter Salzano, as officers of NorVergence, which was declared bankrupt in July 2004. NorVergence began aggressively marketing its telecommunications products in 2002, promising potential customers savings of up to 60 percent. It attributed these savings to a proprietary "Matrix box," which the company claimed would provide customers with wireless, toll-free telephone service and high-speed internet connection, all for a fixed monthly fee. The equipment accomplished none of these functions. NorVergence's sales force was trained to apply deceptive and high pressure sales tactics in recruiting prospective customers, who consisted largely of small businesses, not-for-profits and religious institutions. Nationally, the company secured approximately 11,000 customers including approximately 1,000 New Yorkers. The company's customers typically signed five-year contracts, which the company then sold at a discount to third-party financial institutions. The financial institutions, in turn, billed customers under the original contract terms. These multi-year commitments purported to obligate customers to pay as much as $340,000 for the Matrix box, even though the device was worth no more than $1,500. When a federal bankruptcy court declared NorVergence bankrupt in July
2004, customers were left without telecommunications services and had to
purchase alternative service on a per call basis. Yet |
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People in the News
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CIT Hires John Sullivan To Lead Energy Cap. Markets |
| CIT Group recently announced that John Sullivan, the ex-head of energy project finance syndication at BNP Paribas, has joined the company to lead its New York energy capital markets unit. Joining him will be fellow ex-BNP energy syndications veteran Drew Carleton, who will serve as a senior associate in the division. |
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GE Commercial Finance Promotes Tim Perusek to South Region Managing Director |
| GE Commercial Finance recently announced it has promoted Tim Perusek
to south region managing director for its Corporate Lending business. In
his new position, Perusek will be responsible for originating and
underwriting asset-based, cash flow and structured financing solutions
for customers in Georgia, Florida, South Carolina, North Carolina,
Tennessee, Alabama, Mississippi, Texas, Oklahoma, Arkansas and
Louisiana. Perusek was recently a managing director and sales manager
for the south region. Perusek is a graduate of the University of Florida with a Bachelor of Science degree in finance. |
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NetSol's McCue Elected to EL&FF Board of Trustees |
| NetSol Technologies, a provider of enterprise software and services
for equipment finance, announced the election of John McCue to the
Equipment Leasing and Finance Foundation Board of Trustees. McCue is the CEO of NetSol Technologies' U.S. Operations and the CEO and founder of California-based McCue Systems, which was recently acquired by NetSol. The Equipment Leasing and Finance Foundation conducts and commissions research by academics and industry consultants to provide future-focused research on the equipment lease finance industry, which is currently estimated to be a $250 billion industry in North America. The Foundation is guided by its 18-member Board of Trustees, which includes members of independent leasing companies, bank lessors, financial organizations, consultants, service providers, and universities. The addition of McCue will provide the Board with the added expertise of a technology leader from the service provider sector. "We are delighted to welcome John McCue to our Board of Trustees," said Foundation Director Lisa Levine. "John is one of the best-known and most respected leaders in our industry and brings to the Foundation Board an exceptional awareness of the Association's concerns and priorities." "This is a very special honor and I welcome the chance to join this very distinguished group of equipment leasing visionaries," commented McCue. "As a contributor to the Foundation's State of the Industry Reports, I have been an active supporter of the Foundation for many years. I will now have the opportunity to work more closely with this excellent group. |
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O'Donnell Joins GE Large Cap Leveraged Finance Business as Managing Director |
| GE Commercial Finance Global Sponsor Finance, recently announced
that Joseph T. O'Donnell Jr. has joined the company as a Managing
Director, based in New York. He will be responsible for generating and
overseeing client relationships in the large cap sponsor market. Prior to accepting this position, he served as a founding partner in Briscoe Capital Management, LLC, an investment management firm that specialized in senior secured loans. Mr. O'Donnell has also held key senior positions with Bankers Trust Corp were he was a Managing Director and Partner. Mr. O'Donnell holds a Bachelor of Arts degree in Government from Georgetown University and an MBA in finance from New York University's Leonard N. Stern School of Business. |
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Paul Enderle Joins LRG Capital as Managing Director |
| LRG Capital recently announced that Paul Enderle, 38 has joined the
company and will be responsible for sourcing and executing deals across
all sectors, with a particular emphasis on Life Sciences and Technology.
He will report to Lawrence Goldfarb, Chief Executive Officer of LRG
Capital and Portfolio Manager of its underlying BayStar Funds. Prior to joining the company he was Vice President for GE Capital Life Science & Technology Finance. Prior to that, he served as Vice President for GE Capital's Middle Market Finance Group. He received his BS in Engineering from The University of Massachusetts and his MBA from Babson College, Summa Cum Laude, in 2006. |
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IN VINO VERITAS |
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UPCOMING WINE FESTIVALS |
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There are numerous wine festivals/auctions coming up that lend themselves to a great deal of fund and enjoyment. They include: Overland Park, Kan. Kansas City Festival of Wines; Aug. 26-27; 913-652-1907; www.kcwinefest.com Red Hook, NY Hudson Valley Wine Fest; Sept. 9-10; 845-658-7181; www.hudsonvalleywinefest.com San Antonio, TX. New World Wine & Food Festival; Nov. 7-12; 210-223-2881; www.nwwff.org |
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