| Daily news for the equipment finance sector |  |
| Industry News |  |  |
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- Bondholders back CIT's filing of prepackaged bankruptcy
CIT Group's prepackaged bankruptcy has the backing of an overwhelming majority of bondholders and is designed to put the lender back in business after reorganization under Chapter 11 protection. If the lender emerges from bankruptcy as planned, it will be largely owned by creditors. "The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small-business and middle-market customers, two sectors that remain vitally important to the U.S. economy," said Jeffrey Peek, CIT's outgoing chairman and CEO. In the process, taxpayers are almost certain to lose their $2.3 billion investment in the firm. Forbes
(11/1)
, The New York Times (free registration)
(11/1)
, Bloomberg
(11/1)
    
- GMAC's de Molina says lender's asset profile is secure
GMAC Financial Services is working with regulators to reach an agreement about the lender's level of capital reserves. GMAC CEO Al de Molina said the stress tests that banks underwent "clearly showed" that GMAC had a superb asset profile. De Molina said GMAC's auto lending "does not represent undue risk" and "in no way led to the credit crisis." "All we are trying to do is to make loans to small businesses and consumers in support of the auto industry," de Molina said. The Wall Street Journal
(11/2)
- Companies have increased cash holdings since crisis
The 500 biggest nonfinancial companies in the U.S. were holding about 9.8% of their assets in cash in the second quarter, up from 7.9% the year before. Companies are holding onto more cash than at any other period in the past 40 years. "Everyone is hoarding cash," said Carsten Stendevad, head of Citigroup's financial-strategy group. The Wall Street Journal
(11/2)
- Largest banks hoard cash, but earnings suffer
Bank of America, JPMorgan Chase, Citigroup and Wells Fargo have, as a group, increased liquidity 67% from $914 billion in June 2008 to $1.53 trillion as of Sept. 30, according to the banks' third-quarter reports. Though cash kept in reserves earns much less interest than cash put into loans, some analysts said it is a wise, forward-thinking move. "It's a smart longer-term move, but it will take down the rates of returns these companies can generate," said Eric Hovde, CEO of hedge fund Hovde Capital Advisors. Bloomberg
(11/2)
| Government & Regulatory | | |
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- SEC's chief accountant says update on IFRS road map to come this fall
The Securities and Exchange Commission's chief accountant confirmed the SEC's commitment to provide clarity by late December on its proposed road map for adoption of the International Financial Reporting Standards in the U.S. Watch a video of James Kroeker's remarks at an American Institute of Certified Public Accountants/International Accounting Standards Committee Foundation conference in New York. JournalofAccountancy.com
(10/30)
- Fed to discuss bankers' pay with CEOs, source says
CEOs of the 28 largest banks in the U.S. were asked to meet with the Federal Reserve to discuss compensation for executives, a source said. The leaders are expected to be briefed on how the Fed will review compensation. Observers said the Fed was sending a clear message that CEOs will be the first to see pay cuts. "It starts with the CEO," said Kevin Petrasic of law firm Paul Hastings. "It is not subtle at all to tell the most highly compensated people in the organization, 'OK, we are starting with you.' " Bloomberg
(10/31)
- Fed starts to develop plan for boosting interest rate
With economic recovery appearing to take hold, officials at the Federal Reserve are discussing how to unwind stimulus programs without tipping the country back into recession or spurring inflation. In a policy meeting this week, Fed officials will discuss the timing of tightening monetary policy, how they will do it and how they will communicate it to markets. The Wall Street Journal
(11/2)
, Reuters
(11/1)
| Best Practices | | |
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- Exchange of ideas is helpful, even with CEOs
Jennifer Walzer, CEO of Backup My Info!, cites anecdotal evidence that companies are hiring, most companies want their employees to be happy and many CEOs see the need for a strong second-in-command who can complement their skills. Walzer advocates discussion groups to exchange ideas and joining organizations that foster business discussion. The New York Times/You're the Boss blog
(10/29)
- 100 ways small outfits can get greener
Small Business Trends reports 100 tips from readers on environmentally friendly business practices, which it categorizes in four sections: conserve, recycle, go paperless and adopt green practices. Among the tips: Turn off a computer's power strip every night, take advantage of natural lighting and reduce the number of documents that are printed. Small Business Trends
(10/29)
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Web seminar: Incentive Compensation Design -- Sales/Origination
1 to 2:30 p.m. Eastern on Nov. 12
Register now!
This Web seminar will highlight market practices for incentive plan structures for origination staff in the equipment-leasing and -finance industry. The focus will be on compensation philosophy, plan objectives, eligibility, types of plans, award opportunities, quantitative and qualitative performance measures, and administrative provisions of plans in the market. It will also include open dialogue about changes being implemented as firms redesign their incentive compensation plans to adjust for risk, servicing costs, and divisional and corporate performance. The Web seminar will allow for networking and discussion of challenges with colleagues at other firms.
Who should attend: All individuals involved in the design and management of incentive compensation for the equipment-leasing and -finance origination function, including management, directors of finance and human resources professionals.
For questions or more information, contact Alexa Carnibella, e-learning manager, at acarnibella@elfaonline.org.
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Last chance to attend ELFA Principles of Leasing and Finance Workshop
You have one last opportunity this year to take the Principles of Leasing and Finance Workshop, from Nov. 16 to 18 at the Grand Hyatt San Antonio hotel in San Antonio. This course provides a comprehensive overview of the industry and is a must-attend workshop for anyone freshly hired or wanting a refresher on the basics. Register and review the complete agenda.
In addition, no public workshops are scheduled for 2010, unless market conditions improve and demand increases. If you want us to schedule a public workshop next year, we need to hear from you! E-mail Janet Fianko at jfianko@elfaonline.org, and we will keep track of everyone interested in the workshop. If we hear from enough members, we will get one scheduled.
Keep in mind that we will still be offering the workshop as a custom in-house program for member companies that have several people to train. For details on the custom workshop, e-mail Janet Fianko.
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