Changes at Marlin Leasing

Reprinted from Leasing News

January 6, 2008 SEC filing:
“On December 31, 2008, the Registrant’s wholly-owned subsidiary, Marlin Business Bank (“MBB”), received approval from the Federal Reserve Bank of San Francisco to become a member of the Federal Reserve System. In addition, on December 31, 2008, the Registrant received approval from the Federal Reserve Bank of San Francisco to become a bank holding company upon the conversion of MBB from an industrial bank to a commercial bank.

The Registrant has three months from the approval date to consummate the transaction unless such period is extended by the Federal Reserve System. Prior to consummating the transaction, the Registrant will seek to modify the Federal Deposit Insurance Corporation (“FDIC”) Orders issued when MBB became an industrial bank to eliminate any inconsistencies between the FDIC Orders and the Federal Reserve Bank’s approval.”http://www.snl.com/Cache/c7177044.htm

Editor's Note: Marlin had been a Utah Industrial Bank, but this filing allowed them to convert to a business bank and become part of the Federal Reserve system, allowing them to receive TARP funds.

This comes on the heels of them closing their broker division, which according to The Leasing News, is Marlin's most profitable division. These things together spell financial difficulty for the lessor and serve as a red flag to other lessors who have vendor divisions whose policies are too liberal.

Stu
Southern Lending Solutions