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FEATURED STORIES
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Exclusive Briefing from Wall Street, Capitol Hill Leaders
OCBC hosted Congressman John Campbell and PIMCO Managing Director Paul McCulley (pictured at right) last week for an exclusive, investors-only look at the economy from Capitol Hill to Wall Street. Both leaders were “looking into the abyss” several weeks ago as financial markets ground to a halt and prompted a historic response from the U.S. government. Campbell recalled the delicacy of coordinating swift and decisive action without creating the very panic Congressional and business leaders hoped to avoid. “It was a bit of a political Catch-22,” Campbell related. “If we passed the $700 billion Paulson rescue package, they’d call it a ‘bailout’ of Wall Street and the public might never know how close we were to a complete failure of the global economy. If we didn’t pass it and the collapse became a reality, we would never be forgiven.”
Looking ahead, Campbell suggested the banking industry might have to go back to the way he recalls it as a young man, “perhaps a little boring, but very trustworthy.” McCulley echoed this sentiment, looking forward to a time when the financial industry emerges from its recent switch from “previously ignoring risk to now seeing risk everywhere.” He outlined “exotic” financial instruments (particularly in the housing sector) that “never should have existed.”
As the crisis came to a head, McCulley described what he saw as the "paradox of de-leveraging" in which "each company acted rationally on its own behalf, but produced a collectively irrational response." This "irrational" response occurred when, in selling assets or raising capital, all companies became "sellers" in a market with no buyers. The financial recovery package produced a needed buyer in the form of the federal government, a move both Campbell and McCulley cautiously support.
Using a medical analogy, McCulley suggests that with the Paulson Plan now in place "the patient (our economy) has finally been correctly diagnosed with a systemic disease, the correct treatment has been administered and the prognosis is ultimately good." Still, he noted, "The patient is still in the ICU and I wouldn't expect him to be running a marathon anytime soon."
PIMCO’s Paul McCulley will be the featured keynote speaker at the upcoming UCI Global Strategies Conference, details below. Don’t miss this!
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Mobility 21 Transportation Summit Strategizes
Transportation Solutions for a Slowing Economy
Nearly 500 government, business and civic leaders from across Southern California joined together for the 7th Annual Southern California Transportation Summit hosted by Mobility 21, the region’s leading coalition dedicated to finding transportation solutions across five Southern California counties. Mobility 21's Summit creates a venue for transportation leaders to come together, collaborate and speak with one voice in the best interest of all Southland transit," said California State Assemblymember Mike Feuer. This year’s event focused on strategies to help transit agencies and other groups address regional transportation priorities during the current economic and fiscal climate.
U.S. Representatives Ken Calvert and Laura Richardson headlined a lineup featuring top transportation officials from across the Southern California, including Metro CEO Roger Snoble, Ventura County Transportation Commission Executive Director Darren Kettle (pictured together at right) and others. OCBC President and CEO Lucy Dunn appeared on a panel with California State Senator Alan Lowenthal and Bob Poole of the Reason Foundation.
This panel developed a series of recommendations for the upcoming five-year federal transportation reauthorization plan.
- Implementing a competitive, performance-based, funding program for transportation improvements in metropolitan regions;
- Rewarding regions that have dedicated tax revenues for transportation, such as Orange County; and
- Adjusting the federal excise tax on gas and diesel to reflect inflation.
State level transportation cuts were also a top issue at the conference. "Gov. Arnold Schwarzenegger's line item vetoing of $100 million for public transit will result in lower capital expenditures and lead to cuts at a time when we should be investing more in transportation," said OCTA Vice Chairman Peter Buffa. More cuts are expected and OCTA fears nearly 25 percent of its operating budget could be slashed if transit funding comes under fire again. For more on the summit, click here.
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This Thursday!
What's in Store for the OC Economy in 2009?
Still time to Register!
The financial market? Oil prices? Housing market? Employment trends? Inflation?
We’re all wondering -- what does 2009 have in store for Orange County?
The 2009 Economic Forecast Conference is presented jointly by the Orange County Business Council and Mihaylo College of Business and Economics at California State University, Fullerton.
Please join us for keynote speaker Dr. Anil Puri, economist and Mihaylo College Dean, with guest speaker Joseph Otting, Vice Chairman of U.S. Bancorp.
Thursday, October 30, 2008
Hyatt Regency Irvine | 11:00 a.m. – 1:30 p.m.
17900 Jamboree Road | Irvine, CA 92614
Online Registration | Print Registration
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Global Business Strategies...What Are You Missing?
OCBC is proud to partner with UC Irvine to present the 2008 Global Business Strategies Conference.
Just Announced: Keynote Speaker Paul McCulley, Managing Director, PIMCO
Learn how to anticipate changes in the global market and stay ahead of your competition, sustain business growth in an economic downturn, access capital through government programs to expand your business and understand the influence of Orange County in the global economy
Speakers will include:
- David Pyott, CEO of Allergan
- Ed Grier, President of the Disneyland Resort
- Bijan Kian, Director of the U.S. Export Import Bank,
- Wayne Gross, Partner, Snell & Wilmer
- Stephen Marlow, Executive Vice President of Toshiba America Electronic Components
- Dr. Andy Policano, Dean of the Paul Merage School of Business.
Monday, November 17, 2008
Irvine Marriott Hotel
7:30 a.m. to 3:30 p.m.
Online Registration
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Infrastructure
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California Cautiously Expands Design-Build Authority for Local Governments
Governor Schwarzenegger’s signed AB 642 at the end of the legislative session, creating a new law allowing cities to use the design-build procurement method for most buildings and certain waste and recycling facilities. Design-build is a construction project delivery system where, in contrast to "design-bid-build" the design and construction aspects are contracted for with a single entity. OCBC supports this system as an effective means to streamline projects, minimize risks and reduce delivery costs and schedules.
While AB 642 reflects an increased acceptance of the method, there are still significant restrictions on its use and this important tool remains unavailable for transportation projects. OCBC member Nossaman has produced a detailed analysis of the significant features of AB 642, and the opportunities and limitations it presents. Click here for the full breakdown.
Design-build works! OCBC member, Parsons, lead a team of professionals, using design-build, to insure that improvements to the 22 freeway came in on time and under budget for the Orange County Transportation Authority. For more info on design-build, contact Kris Murray.
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Workforce Housing
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A Public-Private Solution to Housing Crisis?
Steve PonTell of the La Jolla Institute spoke to OCBC’s Workforce Housing Committee October 15 on the state of foreclosures in the Inland Empire. With over 130,000 properties in the foreclosure process, PonTell characterized this as a $30 billion problem for his region. He highlighted a deficient regional framework in place to deal with this emerging crisis, with federal aid spread inefficiently across localities. What PonTell is attempting to prevent is a Wall Street sell off of properties to speculators who have no stake in the community.
PonTell proposes a public-private structure needed to address this problem. He outlined his proposal to leverage the money received from government to increase its impact. He discussed raising investment funds by offering a rate of return, similar to some toll-road funding. Most importantly for PonTell, the recovery plan must be implemented with local government controls in place to ensure communities are recovered.
For more information, visit the La Jolla Institute website or read the write up of PonTell's efforts in the Wall Street Journal.
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Investor Spotlight
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Wells Fargo Supports Election '08
"Democracy -- now available at a Wells Fargo near you" reads a Los Angeles Times story from last week. Indeed, OCBC member Wells Fargo has stepped up big time to help at the polls as Orange County and the nation approach what is expected to be a record setting turnout election.
In a unique deal with the Orange County Registrar of Voters, Wells Fargo employees will be trained as poll workers to man the ballot boxes November 4 and provide vote-by-mail paperwork at its Orange County branches. The bank has even offered its branches as polling sites in future elections. Read more in the LA Times here.
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Workforce Development
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OC Dropout Rate the Lowest in Southern California
Orange County demonstrated the lowest high school dropout rates in Southern California in a study conducted by the Orange County Department of Education (OCDE). Orange County's 10.1 percent dropout rate (four-year rate derived from one year of data) was the lowest of the 8 Counties studied in Southern California, as well as that of the Silicon Valley.
In a recent letter to business and community leaders, County Superintendent Bill Habermehl praised OC students, but noted "we think our dropout rate is too high!" He went on to stress the Department of Education's commitment to lowering this sobering statistic.
OCDE's statistics take on added significance against the backdrop of new national regulations announced today by Federal Education Secretary Margaret Spellings. With fully one in four high school students dropping out nationwide, the Bush Administration is mandating states track and lift the graduation rates for all students, including minorities and students with disabilities. For more information on Orange County schools, visit www.ocde.us.
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Innovation in Education Summit
Focuses on Global Challenges
OCBC, AeA Orange County and the Orange County Department of Education partnered with Project Tomorrow for the 3rd Annual Innovation in Education Summit at the Tiger Woods Learning Center October 24. Keynote speaker Lance Dublin, a nationally recognized leader in innovation and organizational development, joined OCBC’s Dr. Wallace Walrod and other business leaders to address the nearly 200 parents, educators, lawmakers and business leaders in attendance.
The conference focused on new ideas and solutions for improving science, technology, engineering and math (STEM) education and preparing students for the global economy. Dr. Walrod presented findings from the 2008 Workforce Indicators report and answered questions on Latino educational attainment. Gary Toyoma, Southern California Regional Vice President for Boeing Space and Intelligence Systems, also spoke on the importance of K-12 education. "Only 30 percent of students are proficient in math and science. There is a severe need to recruit new teachers in these fields to fill this need."
For more on the conference, visit Project Tomorrow's website.
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Upcoming Events
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Committee Meetings
October -- November 2008
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Thursday,
October 23 |
Community Colleges Working Group, 3:00 p.m. |
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Friday,
November 7 |
Latino Educational Attainment, 9:00 a.m. |
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Friday,
November 14 |
Advocacy and Government Affairs Meeting, 9:00 a.m. |
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Friday,
November 19 |
Workforce Development Committee, 7:30 a.m. |
All meetings are at OCBC's main offices unless otherwise indicated. Please also view OCBC's Master Calendar.
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Community Events
Post Election Wrap-up
Thursday, November 6
Art Torres and Ron Nehring, the State Chairmen of California’s two major political parties analyze the November election. Visit www.ocforum.org for more information.
Network Orange County
Wednesday, November 12
The Irvine Chamber has hosted Network OC since 2001 and has attracted upwards of 800 attendees offering hundreds of networking opportunities. All Orange County Chambers are invited to participate at no cost. Contact Linda Benjamin at 949-660-9112 extension 111.
Leading the Way Through a Changing Governance Landscape
November 12 - 13
A highly interactive conference for experienced directors, sponsored by Manatt and featuring keynote speaker Sharon Allen, Chairman of the Board, Deloitte LLP. For more information click here.
Leadership in a Changing World
Tuesday, November 18
Steve Churm, President of Churm Media headlines a group of business a goverment leaders for a discussion on "New Economy, New President, New Agenda -- What do I do now?" Hosted by Vanguard University, RSVP online.
Funding Our Infrastructure in the Current Economy
Tuesday, November 18
You are cordially invited to attend the University of California, Irvine Civil and Environmental Engineering Affiliates meeting on funding infrastructure projects. RSVP to a.heath@uci.edu or call 949.824.0584.
Orange Chamber of Commerce Election Wrap Up
Friday, November 21
The Orange Chamber of Commerce partners with OCBC and business interests from across Orange County for an election wrap-up. Ken Khachigian, a veteran of nine presidential campaigns, six of them at senior strategic and staff levels, keynotes. Click here for more information.
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