California
Trump says US government is behind California during visit to fire-stricken state
 
																								
												
												
											 
U.S. President Donald Trump said the federal government is standing behind California 100% in the aftermath of devastating wildfires and said during a visit to the state on Friday that he would come back as much as needed.
“The first lady and I are in California to express a great love for the people of California,” Trump told a gathering of local leaders at a fire station in Los Angeles’ Pacific Palisades neighborhood.
The neighborhood was one of the worst hit by the recent fires, with rows of homes left in ashes. Trump participated in a walking tour of the area earlier in the day and also surveyed recovery efforts from a helicopter as firefighters in the Los Angeles area continued to confront multiple blazes amid high winds and dry conditions.
“I don’t think you can realize how rough it is, how devastating it is, until you see it,” Trump said after the tour.
The Palisades Fire is about 77% contained and has burned through nearly 9,500 hectares of land, according to the California Department of Forestry and Fire Protection.
Trump has criticized California leaders for water policies that he says have exacerbated the recent wildfires. He said before traveling to California that he would “take a look at a fire that could have been put out if they let the water flow, but they didn’t let the water flow.”
California Governor Gavin Newsom has rejected the president’s assertion, and other state legislators have said the fierce wildfires placed extreme demand on a municipal system not designed to battle such blazes.
Newsom greeted Trump as he arrived on the tarmac in Los Angeles on Friday. The two were cordial and shook hands.
“I have all the expectations we’re going to be able to work together,” Newsom said.
Trump responded: “We’re going to get it fixed.”
During the gathering with community leaders, Trump said that Los Angeles residents who lost homes should be allowed back onto their properties immediately, challenging Mayor Karen Bass to speed up the cleanup process.
“People are willing to get a dumpster and do it themselves and clean it up. There is not that much left, it is all incinerated,” Trump said.
Bass said, “the most important thing is for people to be safe,” but promised residents should be able to return home within the week.
Trump promised that federal permits to rebuild would be granted promptly and urged local officials to do the same.
Before visiting California, Trump first visited North Carolina, where he was briefed on monthslong recovery efforts of the damage caused by Hurricane Helene.
Speaking to reporters at Asheville Regional Airport, Trump said FEMA “has been a very big disappointment” and said he is considering “getting rid” of the agency.
FEMA is the Federal Emergency Management Agency that has been responding to disasters in both California and North Carolina.
“It’s very bureaucratic. And it’s very slow,” Trump said of the agency.
Trump continued to express dissatisfaction with FEMA while in California, calling it a “big disappointment.”
Trump, a Republican, has broached using federal disaster assistance as a bargaining chip during unrelated legislative negotiations over government borrowing, or as leverage to push California to alter its water policies.
“Playing politics with people’s livelihoods is unacceptable and a slap in the face to the southern California wildfire victims and to our brave first responders,” Representative Young Kim, a Republican from Orange County, south of Los Angeles, said in a recent statement.
Trump has also suggested putting more responsibility on individual states to respond to disasters.
“I’d rather see the states take care of their own problems,” he said in a Wednesday interview with Fox News. “FEMA is getting in the way of everything.”
Michael A. Coen Jr., who served as chief of staff at FEMA during the Biden administration, said Trump has been “misinformed” about the agency, and he took exception to what he characterized as Trump’s inclination to play politics with disaster relief.
Ahead of Trump’s visit to southern California, firefighters continued to fight multiple fires in the Los Angeles region.
The second-largest fire, known as the Eaton Fire, is now 95% contained after burning through more than 5,600 hectares of land, according to Cal Fire.
The Hughes Fire in the mountains northwest of Los Angeles near Castaic Lake started Wednesday, prompting evacuation orders for more than 50,000 people. Health advisories for smoke and windblown dust and ash have been issued for surrounding areas.
“Smoke and ash can harm everyone, even those who are healthy,” Dr. Muntu Davis, Los Angeles County’s health officer, said in a statement.
Firefighters received help fighting the Hughes Fire overnight with aerial water drops from helicopters. The fire is now 56% contained and has burned more than 4,200 hectares of land, according to the Cal Fire.
The Laguna Fire in Ventura County initially prompted evacuation orders for California State University Channel Islands and University Glen, but the orders were downgraded to warnings Thursday afternoon.
That fire is 70% contained after charring nearly 40 hectares of land, according to Cal Fire.
The U.S. Storm Prediction Center said high winds, low humidity and dry conditions continued to cause “elevated” fire weather conditions on Friday.
There is a chance for some relief in the coming days. The National Weather Service said rain is expected in the area beginning Saturday.
Forecasters expect up to a centimeter of rain across much of the Los Angeles area, while localized thunderstorms could bring even more rain in limited locations. The potential for those storms has prompted concerns about the possibility of mudslides, with debris flowing down hilly areas that have been scorched by several weeks of wildfires.
The fires that broke out in southern California on Jan. 7 have killed at least 28 people and destroyed an estimated 16,000 buildings. The death toll is expected to climb as emergency workers comb through the ashes.
Some information for this report was provided by The Associated Press, Reuters and Agence France-Presse.
 
																	
																															California
Exclusive: FBI searched California real estate firm linked to bad bank loans
 
														 
Item 1 of 2 The podium for the director of the Federal Bureau of Investigation is seen at FBI headquarters in Washington, U.S. June 14, 2018. REUTERS/Yuri Gripas/File Photo
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On September 11, FBI agents searched Continuum’s Newport Beach, California, offices, law firm Paul Hastings wrote in a September 12 letter seen by Reuters.
Representatives for Continuum did not respond to emails and calls seeking comment. The FBI is an enforcement arm of the Justice Department. Spokespeople for the agencies did not respond to requests for comment. An attorney for Cantor Group said the firm upheld the terms of the Zions and Western Alliance loans and did not provide comment on the government scrutiny.
Allen Matkins, a law firm that represents other entities linked to Continuum, wrote in an October 2 letter that it learned on September 11 that certain of its clients were the subject of search warrants “in connection with a pending criminal investigation,” and that a grand jury had been convened in the case.
Prosecutors typically convene a grand jury when they intend to gather more evidence. The letters did not say which specific criminal authority was leading the case or what potential misconduct or individuals it was focused on.
Criminal investigations do not necessarily mean any wrongdoing has occurred and many do not result in charges.
Reuters is reporting the FBI search and probe for the first time. The government scrutiny could have ripple effects for what legal filings and public records show is a complex web of investors and lenders tied to Continuum’s real estate dealings, some of which are entangled in civil litigation.
Paul Hastings and Allen Matkins are representing parties embroiled in a complex real estate dispute. The letters relate to those proceedings. The Allen Matkins letter was disclosed in a California court.
When asked about the letter by Reuters, a lawyer for Paul Hastings said the firm was “working to unravel multiple levels of alleged fraud,” but did not provide more details.
Allen Matkins did not respond to calls and emails seeking comment.
PASSIVE INVESTORS
Zions on October 15 sued Cantor Group fund guarantors Andrew Stupin and Gerald Marcil, among others, to recover more than $60 million in soured commercial and industrial loans. The next day, Western Alliance flagged that it had sued the pair and a different Cantor fund in August to recover nearly $100 million.
Both suits allege key information was misrepresented or not disclosed, breaching the loan terms. Western Alliance also alleges fraud on the part of the Cantor fund.
Continuum acquires and manages distressed real estate assets for groups of investors, and its largest investors include Stupin and Marcil, according to a February arbitration ruling related to the real estate dispute. That ruling found Cantor “consists solely” of Continuum’s legal owner, Deba Shyam, and shares the Continuum offices. Shyam did not respond to calls and emails seeking comment.
Cantor upheld its contractual obligations and was transparent with its lenders, while the loans were audited and independently reviewed multiple times over the years, said the Cantor attorney Brandon Tran, who also represents Stupin and Marcil.
The pair are passive investors in Cantor and held no operational roles, he added. Cantor in legal filings has disputed that the Western Alliance loan is in default.
In a statement, Marcil said he had invested in several of Continuum’s properties. He denied wrongdoing and said that he was a victim.
Spokespeople for Zions and Western Alliance did not respond to requests for comment.
Reporting by Douglas Gillison and Chris Prentice; Editing by Michelle Price
Our Standards: The Thomson Reuters Trust Principles.
California
California sues truck-makers for breaching zero-emission sales agreement
 
														 
California air quality officials have sued four truck manufacturers for breaching a voluntary agreement to follow the state’s nation-leading emissions rules, the state announced Tuesday.
What happened: Attorney General Rob Bonta’s office filed a complaint Monday in Alameda County Superior Court, arguing that the country’s four largest truck-makers — Daimler Truck North America, International Motors, Paccar and Volvo North America — violated an enforceable contract that they signed with the California Air Resources Board in 2023.
The lawsuit comes two months after the manufacturers filed their own complaint in federal court, arguing the agreement — known as the Clean Truck Partnership — is no longer valid after Republicans overturned California’s Advanced Clean Truck rule in June through the Congressional Review Act.
Why it matters: The move sets up a fight to determine whether the federal system or state courts — where CARB would have a higher likelihood of prevailing — will review the case.
California
California sues USDA over halted SNAP benefits, warning 41 million Americans are at risk
 
														 
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