Arnold Schwarzenegger faces the fight of his life. The “Governator”, best known for slugging it out in Hollywood blockbusters as an indestructible cyborg, displays steely confidence as he battles California’s worsening budget crisis.

As some of America’s biggest banks on Friday stopped accepting IOUs issued by the cash-strapped state in lieu of money, Mr Schwarzenegger defended his handling of the crisis and denied playing a high-stakes poker game with political opponents over California’s finances.