Rebirth 79: I opened a bank in the United States

Chapter 3 Legal Usury
"Uncle Goodman, contact Portnewt and Monza now. Let's borrow money! We have to borrow more! Five years, I paid 13 points of interest, and the family borrowed 25 US dollars each! The Federal Reserve You can also call and ask.”

Bet!

Carter was never one to follow the rules, never was, and still isn't.In other words, with such an opportunity in front of you, if you don't dare to gamble on it, what kind of bank do you want to do?Pack up your bed early and get out of here.

The financial market has always supported the bold and starved the timid.Although before a brave one is killed, there will be countless brave ones killed.But Carter believes that he will definitely become the one who is strangled to death, just relying on his own foresight
After getting through this difficult period, after the 80s, 90s, whatever Google, Microsoft, Apple, Amazon, etc. in the future, just invest in a few, and you will have wealth and freedom in this life!

"No, it's not just the Federal Reserve! Our trade association in Georgia is also going to issue an announcement to raise funds! I only have two requirements. One, the loan period must be a long-term loan of five years or more; two, the interest rate must not exceed [-]% Five. As long as it does not exceed [-]%, you can agree to it. The more the amount, the better!"

The more he thought about it, the more excited Carter became.Simply continue to increase the handicap. The hundreds of thousands of dollars from Portnewt Bank and Monza Bank alone can't satisfy Carter's appetite.

With the hundreds of thousands of dollars in hand, it can only ensure that his own Black Bank can survive the current predicament.After the loan is recovered in the future, I can earn a little bit of money.But is it enough to make a little money?

"Are you sure it's fifteen points of interest?! Carter, are you serious?"

Unlike Carter's excitement, Goodman looked stunned, and even reached out to fish his ears, wondering if there was something wrong with his ears.This kind of indecent behavior was never seen in this self-proclaimed elite guy in the past.

"Of course, I'm very serious! Fifteen points, as long as it doesn't exceed fifteen points, you can agree. In addition, if the amount exceeds 25 US dollars, for every additional 100 US dollars, you will have a commission of 10000 US dollars, interest 10000 for each point reduction! I will give you [-]!"

"No, no, no, this is not a question of bonuses or commissions. Carter, are you crazy?! How can we repay the loan after five years? We are just a very small city, not Atlanta, let alone New York You can't expect huge loans from peanut and tobacco farmers!"

Goodman waved his hands again and again in fright, demeanor?It has long been lost to grandma's house.
Going around the large desk, Goodman walked over to Carter.Looking at it like that, it seemed like he wanted to grab Carter's neckline and question him.

"Calm down! Uncle Goodman, think broadly. What are we? We are a bank. We have money in our hands, which is our greatest confidence. Don't worry about not making money."

Carter understood why Goodman was so terrified. In the final analysis, his family was too weak.Also, banks these days are actually very traditional.In addition to the monthly management fees paid by depositors, there is basically only one way to make money from loans.There are not many potential customers who need loans near Black Bank, which naturally cannot make money for loans.

Not to mention investment income, the current Black Bank simply does not have the strength to get involved in the investment banking business.As for foreign exchange settlement and settlement business, come on, they Black Bank are all customers of those intermediary banks
So Carter's first idea of ​​making money was also a loan.Borrow large sums of money at low interest rates by taking advantage of poor information.After the Federal Reserve raises the federal funds rate, the money circulating in the market decreases, and then it will be purely a seller's market.

Only you have money here, if you want to borrow money, you can only find me! You have to eat the 20 points of interest!It can even be higher than the interest rate set by the Federal Reserve to lend.After all, the federal funds rate set by the Federal Reserve usually only affects the financial industry.

To put it bluntly, the federal funds rate is the interest that banks need to pay when they borrow funds from the Federal Reserve.Ordinary individuals are not eligible to borrow money from the Federal Reserve.In this way, how much interest will the banks give to individuals on loans?
Carter doesn't know this, but he can take a wild guess. Banks pay more than 20 points of interest on the money they borrow, and the money they loan out
Is it polite not to charge more than [-] points of interest? !

Don’t forget, the standard for judging usury in China in the previous life was [-]% annual interest rate. If the interest rate exceeds [-]%, the state guarantees that you don’t have to pay it back!But in fact, there is another value that is also very critical, that is, the annual interest rate is [-]%.

An annual interest rate of [-]% is already very high!When Carter was chasing a girl from the School of Political Science and Law, he happened to read "Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases", and discovered something very interesting at that time.

In Article 24 of the regulations, it is clearly stipulated that if the annual interest rate of the loan does not exceed 36%, the court should support the lender in demanding interest and principal from the borrower.If it exceeds 36%, the court will in turn support the borrower to ask the lender for the interest that has been paid in excess of 36%, and clearly state that the loan agreement exceeding [-]% is invalid!

So usury is actually two lines. The first line is 24%, which is the warning line. After 24%, it actually has the smell of usury, but it is not particularly bad, so the excess part can be negotiated for repayment; The second line is 36%, which is a high-voltage line, and there is no need to discuss it after passing it.Then turn around and look at the interest rates in the United States a few years later. Almost one of all the loans during that period counts as one, and all of them are usury!

Moreover, it is still a usury that can be issued legally!After all, your Federal Reserve has taken the lead in engaging in high interest rates, so you are not allowed to add fuel to the fire?

You know, the Fed is not unlimited.Especially the federal funds rate, an important indicator that can affect the national economic development, according to regulations, the federal funds rate is only allowed to fluctuate between 8% and 14%.

In the future, the Federal Reserve will take the lead in raising interest rates to more than [-]%, so why not allow the banks below to raise interest rates?This is America!Even the crazy IRS can't resist the power of capital. If only the Fed is allowed to raise interest rates, other banks are not allowed to raise interest rates
Then the president must be tired of living and wants to see God and his hometown.
Forehand lending funds to other banks to make small profits, and backhand loans to individuals, individual businesses and enterprises, making big profits!

No matter how you think about it, Carter feels that he can't lose.But Carter couldn't explain this kind of foresight about the future.After all, this information was only what I had seen in the course of world economic history. Carter really didn't understand other aspects of this period.

Trying to make up a seemingly reasonable reasoning excuse seems exhausting.But fortunately, Black Bank is just a small rural bank with a poor family background, which also means
Few people can beep!

"Now I'm the boss! I've decided, you do it, no matter what the final result is, I will bear it all!"

(End of this chapter)