As any partnership attorney knows or any partners of an existing partnership, if there are misrepresentations made when the parties enter into a partnership, the entire business enterprise can and probably will turn sour. Whether the partnership is formed in Newport Beach, CA, Orange County, California or La Jolla, Mission Valley, Carmel Valley or Carlsbad in San Diego, or Anaheim, Irvine, Santa Ana, Orange, Tustin, Rancho Cucamonga, Fullerton, Riverside, Murrieta, Palm Springs, Palm Desert, Indian Wells or La Quinta, the partnership must have a solid foundation of trust to survive.

The flurry of partnerships entered into in recent days by financial institutions facing bankruptcy point out the risks of entering into a partnership when one or more of the partners is less than truthful. Given the statements we have heard from financial institutions over the past year touting how fundamentally strong they were, it is easy to imagine boardroom conversations like this one between the Bankafella Trust CEO and the CEO of Bankaramaroo.

"You said you were as financially strong as a bear," Bankafella's CEO said.

"Who ever heard of a bear that had any money," Bankaramaroo's CEO said. "I said I was strong as a bear. Our bank happens to be as financially weak as a church mouse. Thanks for buying us, by the way."

"That's great," Bankafella's CEO said. "Just great."

"What's to worry," the Bankaramaroo CEO said. "You're Bankafella, an American institution. We're partners now. With our internet banking clients and your assets..."

"What assets are you referring to?" the Bankafella CEO asked.

The Bankaramaroo CEO stuttered as he always did when he became nervous. "But, but your balance sheets, your Profit and Loss statements, all our due diligence..."

"You mean all that due diligence you performed just like we did when we had two days to form a partnership or lose our credit rating?" the Bankafella CEO asked.

"Now what?" the Bankaramaroo CEO asked.

"Bring in the lawyers?"

"We fired ours," the Bankaramaroo CEO said. "Couldn't pay them."

"Ours too," the Bankafella CEO said.

"Maybe we could find an attorney to sue the accountants on a contingency basis," the Bankaramaroo CEO said.

Bankafella's CEO nodded, but without any conviction. "How much money have you got in your vault?"

"The truth?" Bankaramaroo's CEO asked.

Bankafella's CEO nodded.

"We could probably scrape up enough for some fast food," the Bankaramaroo CEO said.

"And Bankafella Trust can probably pay for drinks," the Bankafella CEO said.

"What have you got in mind?" the Bankaramaroo CEO asked.

"Lets adjourn this meeting and have lunch and drinks," Bankafella's CEO said. "I have someone I think we should meet."

"Who's that?" the Bankaramaroo CEO asked.

"Our new partner," the Bankafella CEO said. "The one we need to find that won't have time to do any due diligence and who actually has some liquid assets."