What will the bankers do with the money and Suncal Update

Bailout Update:

What will the trillion dollar bailout do for America- so far nothing. What will it do for the large national bankers - allow them to pay billions of dollars in bonuses and dividend payments.

I have had several intersting conversations lately on this subject. One of them came from a mid-size California bank. This bank was offered a $50 millon from Hank Paulson and George Bush.

The offer is similar to the offer received by the nine large banks a few weeks ago. What will the bank do with the money? Will they stimulate the economy by lending the money to businesses (which is the intended purpose)? NO! They are planning on using the money to buy out other small California banks - this will only DECREASE the level of competition and allow them to raise their fees and rates! Nice plan Hank and George!


Suncal Update:

McAllister Ranch could become part of a liquidation bankruptcy case Thursday, court papers filed late Wednesday afternoon indicate.

Lawyers for SunCal Cos., the Irvine-based developer behind the troubled project, will ask a federal bankruptcy judge to convert an existing involuntary bankruptcy proceeding to a Chapter 7 case at a previously scheduled hearing Thursday afternoon in Santa Ana, the document shows.

Recent filings also show companies owed money by SunCal want to know what happened to a $144 million “dividend” payment to SunCal subsidiaries and/or its president in 2006. One lawyer says the money was probably used for cruises, charter flights and other extravagances during the real estate boom.