Chapter 470: West Pacific Union Bank

When Charles Capet returned to Los Angeles, there were still half a month left before the Academy Awards. The excitement in Los Angeles didn't feel like it was in the middle of an economic crisis.

Unfortunately, the global financial tsunami triggered by last year's Lehman Brothers bankruptcy had fully spread.

In Europe, Iceland had gone bankrupt and was receiving assistance from the International Monetary Fund.

In Asia, developed regions led by Japan and South Korea, including Hong Kong and Singapore, were falling into economic recession!

At Los Angeles City Hall, Governor Arnold Schwarzenegger proudly announced that the high-speed rail project from Los Angeles to San Francisco had been approved by the state legislature. The newly elected President Obama had also ordered the federal government to support California with a $3 billion grant!

Los Angeles City Hall, located in downtown Los Angeles, was a white building built in the late 1920s. It stood 138 meters tall with 28 floors and was the tallest building in Los Angeles until the 1960s.

Today, Los Angeles City Hall remains one of the city's landmarks. In a small office in City Hall, Charles was chatting with California's Finance Secretary, Michelle Jenesta.

"This high-speed rail from Los Angeles to San Francisco will greatly enhance economic connections between northern and southern California and strongly stimulate the state's economy," Michelle Jenesta said, grateful to Charles for his efforts in securing federal funding.

"Building railroads in America isn't a piece of cake," Charles knew very well how difficult it was to deal with American landowners. He doubted California would even be able to resolve its land issues, let alone build a railroad.

Most of the land in America was privately owned, with a heavily privatized economy, strong market forces, and a weak government. California's current severe financial deficit made the high-speed rail project a potential stimulus.

"You're a Californian too, Charles. The state's finances are strained, our credit is downgraded, and no one is interested in municipal bonds," Michelle Jenesta sighed. "The Audit Office has warned us that without a balanced budget, spending cuts, and increased revenue, California might end up bankrupt!"

"Tesla has decided to acquire Toyota's Fremont auto manufacturing plant in California," Charles, a major shareholder in Tesla, was well aware of many situations.

"More and more companies are moving out of California due to stringent tax audits and high taxes. On the expenditure side, the governor proposed cutting public spending and social welfare, but it's hard to get legislature approval As for revenue, raising tobacco and fuel taxes and increasing tax benchmarks for the wealthy were initially rejected by the governor during his election campaign."

Charles shook his head. "Although California is the largest economy in the U.S., its debt levels are too high, and the local economy is too dependent on the financial sector. Whether it's Silicon Valley or Hollywood, their ties to Wall Street are stronger than to California. The financial tsunami only exposed those swimming naked. Recently, many American banks have gone under, and regional banks in California are struggling. I'm preparing to inject capital into the West Pacific Union Bank to help them through this tough time."

Michelle Jenesta nodded, stood up, and hugged Charles. "Thank you for all you're doing for California. In addition, Capet Pictures wants to expand its studio near your headquarters in Burbank. We'll urge the city government to sell you the land you need. With the studio construction creating jobs, the city government will surely offer tax incentives!"

After leaving City Hall, Dona Williams and Charles left together in a car.

"The bank shares are being acquired right?" Charles leaned back in his seat, looking at the growing number of homeless people on the streets near City Hall. The unemployment rate was clearly rising.

"It's ongoing. Quite a few people are willing to cash out their shares," said Dona Williams, finding it easy.

"How's West Pacific Union Bank doing?" Charles inquired. He was indeed planning to invest in the bank, but not without reason.

"Not so well. Currently, West Pacific Union Bank shares are at $15 per share, with a market value of less than $2 billion. Compared to last year's listing high of $40 per share, it has dropped significantly, and the stock price is still unstable, continuing to decline!"

West Pacific Union Bank was a regional bank in the United States, with its main business and branches concentrated in California. Headquartered in Los Angeles, the bank had 67 service branches in California.

Its main business included personal and commercial banking, deposits, loans, and mortgages, as well as small business, real estate financing, and venture loans!

"Have you negotiated yet?"

Dona Williams nodded and explained, "To acquire a 25% stake in West Pacific Union Bank and become a major shareholder requires about $500 million. Currently, the bank manages assets of approximately $28 billion."

Charles nodded. "Owning a regional small bank isn't bad; a 25% stake gives me enough control. Once I take control of West Pacific Union Bank, we can work with your AC Capital to acquire shares in Lululemon and Starbucks. Both companies aren't doing well now."

Whether it's Starbucks or Lululemon, they mainly operate storefront businesses. Charles intended to develop West Pacific Union Bank into America's leading regional bank.

By supporting Lululemon and Starbucks financially, West Pacific Union Bank could also benefit from their channels to expand!

"Boss, you're still optimistic about Lululemon, huh? We made good money on Lululemon's stock rise before. The financial tsunami caused its stock to drop a lot," Dona Williams smiled.

"Rest assured, Starbucks and Lululemon will have unexpected growth in the future," Charles said, turning to kiss the lady on the lips. "You'll be very busy soon!"

Dona Williams passionately responded to Charles' kiss. Afterward, she nodded, "West Pacific Union Bank is very keen on you taking over. They also hope to grab a share of Hollywood's pie!"

Charles laughed and placed his hand on Dona Williams' thigh, "Meeting with West Pacific Union Bank's board and discussing details should be easy."

A small regional bank wasn't anything big for Charles, but it did have some benefits.

It could help stabilize Charles's operations in California and provide convenience in fund management!

*****

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