Two Emptying Bank Accounts

Imagine for a moment… A company has 2 bank accounts and expects to have a certain amount of money in each account annually. Let’s call these 2 bank accounts:

Lake Mead Savings and Trust and Lake Powell Savings and Loan

One of the basic conditions for each account is a 5% service charge (evaporation rates). Initially, the depositor was reassured that there would be enough cash flow to keep the accounts viable, to offset the service charges and have enough surplus to offset the accounts through meager times.

But then things changed. After an audit you have considerable reasons to think that your accountant was not a reliable advisor.

In the near term, forecasted revenues are 40-70% of normal. This is after several years of decreased revenues. Add on that the accounts may be further diminished thanks to increasing service charges.

Then some of the company investors/financial groups want to take their money out of the venture:

Washington County Utah, Black Mesa Aquafer, and Las Vegas Underground Storage

What if it starts looking - more and more - like having two bank accounts will be more costly than one?

Then what do you do?

In December 2020, the State of California officially made water a commodity, to be bought, sold, and traded…