Big deficit looming in California forces the hand of  Arnie.  Add the Terminator to the long list of people seeking a handout from Henry Paulson. Late on Oct. 2, California Governor Arnold Schwarzenegger sent a letter to the U.S. Treasury Secretary saying he may need a $7 billion short-term loan from the federal government to help the state make its payroll at the end of the month.

The governor’s outstretched hand is just the latest sign of the severity of the financial vice squeezing the nation (BusinessWeek.com, 9/29/08). Everyone from small business people to homeowners to the largest state in the nation is finding it difficult to get a loan. “Right now this credit crunch impacts just about everyone who wants to borrow,” says Doug Charchenko, head of the fixed-income department at broker Wedbush Morgan Securities. “New issues have not been able to get into the market. Institutions aren’t buying bonds, they’re hoarding cash.”

Such a federal loan to a state would substantially broaden the federal government’s efforts to stem the credit crisis—and could well lead to similar requests from other strapped states. Jennifer Zuccarelli, director of public affairs at the Treasury, confirmed that California’s request had been received but would not comment further on whether it is under consideration or when a decision might be reached.

China’s biggest bank said Sunday it has received approval to buy a 20 percent stake in South Africa’s biggest lender, the latest big-ticket overseas expansion by Chinese investors.  The deal between state-owned Industrial & Commercial Bank of China Ltd. and Standard Bank Group Ltd. is one of China’s biggest foreign corporate acquisitions to date.

The statement did not provide financial details of the deal, which was announced last year, but the official Xinhua News Agency said it was worth $5.46 billion.  Most analysts will be watching this one closely.

Trump Entertainment Resorts Chief Financial Officer Dale Black Resigns Effective Dec. 14.  Casino operator Trump Entertainment Resorts Inc. said Monday Executive Vice President and Chief Financial Officer Dale R. Black has resigned to accept a similar position at another gaming company. Black’s resignation will become effective on or about Dec. 14, the company said in a filing with the Securities and Exchange Commission.

Trump Entertainment plans to identify potential succession candidates, but did not say when. Trump Entertainment shares dropped 25 cents, or 4.8 percent, to close at $4.92 after hitting a new low of $4.83 earlier in the session. Shares continued to fall in aftermarket activity, tumbling 82 cents, or 16.7 percent, to $4.10.  It will be interesting to see who takes his place.