Rebirth 79: I opened a bank in the United States

Chapter 381 The scale of assets and liabilities expanded exponentially
"Special circumstances mainly refer to: 1. Your business behavior violates the laws of our country, or some behaviors break through the moral bottom line of our people, which just arouses public resentment. In this case, we believe that your side is not in When it is suitable to engage in business activities within the territory of our country, in order to avoid waste of resources, the joint venture may be expropriated, and after rectification, it will be handed over to the state for operation.”

"2. In the event of force majeure factors such as wars and catastrophic natural disasters. When requisitioning the premises of the joint venture is required for the purpose of resettling the masses, we will first consider the requisition by agreement, such as paying the rent of the site by the state finance. If the situation continues to deteriorate, We might consider a full levy."

Facing Carter's question, the representative of the municipal party committee who had been on the sidelines spoke up.

"This so-called special situation mainly refers to two aspects: our objective and actual needs and your possible illegal operation. Regarding the corresponding compensation, it also needs to be discussed on a case-by-case basis."

"If it is the first case, it is due to our strategic needs to expropriate your property. The corresponding compensation should be generous. In addition to repurchasing the existing assets of the joint venture according to the market value at the time of expropriation, we will also Provide you with an economic compensation not lower than 20% of the market value of the joint venture when the joint venture is expropriated to compensate for your losses."

"And if it is the second case, that is, passive expropriation not caused by us. After you pay the corresponding fine, we can only give you 50% of the market value of the expropriation as compensation. We hope to urge you to Fang, legal and compliant operation!"

"As long as we operate legally and compliantly, we will definitely do our best to protect your rights and interests!"

"I still need a more specific explanation, such as the two major categories of situations you just mentioned. What are the specific subcategories, what are the situations, and how many levels are there for different situations?"

Carter was not satisfied with this answer, and continued to ask:
"Example: As you just said, in case of a natural disaster, we need to expropriate our premises in order to accommodate the affected people. For example, when the number of victims reaches a certain number, it is an agreed expropriation; Does the right belong to your side or our side, or can it be implemented through consensus between the two parties?"

"As for the specific rules, since we have no precedent for Sino-foreign joint ventures in the hotel industry, this needs to be discussed in a meeting. Why don't you give us a day, and we can discuss it in a meeting the day after tomorrow?"

"Can."

It took nearly a week to negotiate the contract details of the Sino-foreign joint venture Home Inns Hotel Group.

And because the detailed explanations of the relevant clauses and notes were all written into the contract, the total number of pages in the final contract also exceeded three digits.
After the contract was signed and the office staff were recruited, Carter took half a day to have a meal with his first batch of Chinese employees.schedule tasks
In addition to office functions, the primary job of this group of people is to run the office.The contract for the hotel group project has been signed, but Carter has no time to wait for a series of trivial matters such as the handling of relevant licenses, the opening of foreign exchange accounts for joint ventures, the establishment of the group's labor union organization, and tax relief for domestic reinvestment of net profits. done.At the dinner table, Carter handed over all the tasks to these people, which can be regarded as an internship assessment.

With a thick stack of contracts and a suitcase full of gifts, Carter embarked on the return flight
"Don't tell me, nearly [-] million US dollars, you brought these things back?"

Outside the terminal building of Hartsfield International Airport in Atlanta, Goodman, who was leaning against the door of the car, looked unhappy.Looking at Carter, who was dragging big and small bags like migrant workers entering the city, he didn't say he stepped forward to help, but asked coldly.

"Hey! Goodman, there are a lot of things! The asset documents alone take up more than half of the box, come help me, I'm exhausted! You really don't know how I carried all these when I changed planes in New York Stuff going from JFK to LaGuardia. Fuck it!"

"Hehe. I think the most terrible thing is your current leverage ratio!"

Goodman, with a cold face, couldn't resist Carter's pitiful eyes after all.Quickly stepped forward to take the luggage, and helped to pack it into the trunk.
"Have you ever considered how big your debt is now? At the earliest, it was 166 million, which will be due in three years; for the SR-20 highway project, the loan of 5000 million US dollars will be repaid step by step in [-] years. Now you have another one $[-] million."

"A total of [-] million in debt! This is only the principal of the debt! Let's not say whether you are rich or not, God! Two years ago we were a small bank with total assets of less than five million. You His personal assets are less than half a million."

"Carter! Are you really not afraid? This chain of debts, if one of the funds cannot be turned over, it will be over! You will have nothing!"

"In addition, on the bank side, the total assets of Black Bank are also on the verge of exceeding the limit. At that time, the reserve ratio will also be quadrupled. This requires a surplus of cash!"

Facing Goodman's barrage of questioning, Carter quickly shrank back to the co-pilot.Instead of looking flustered on his face, he asked with a smile on his face:
"It's going to exceed 2500 million so soon? Good thing! Goodman, look, our debt scale is huge, but our asset scale is also expanding exponentially!"

Due to the 80 Bank Law, the difference in the reserve ratio required for banks with assets above and below 2500 million is too large.Carter has always operated the four banks under his name independently.

Four bank licenses are used, which means four independent banks.In this way, as long as the assets of a single bank do not exceed 2500 million, the four banks can independently operate with a reserve ratio of 3%.

It seems that the four banks, each with a 3% reserve ratio, still seem to be 12%, but in fact it is not the case at all.For example, assuming that the total assets are 4000 million, if it is classified as a single bank entity, then according to the requirement of a 12% reserve ratio, it is necessary to prepare a reserve of 480 million US dollars.

After evenly distributing the 4000 million among the four banks, only 120 million US dollars is needed!The difference of 360 million in the middle can be used by myself to continue to operate profitably.

Only in this way, the risk factors will be greatly increased.

If it weren't for an insider like Patterson in the FDIC branch in Atlanta to help cover it up, which savings bank would dare to play like this would definitely have its water meter checked!

But Carter was having fun here, while Goodman was quite frightened on the other side.
"Nonsense, you've added such a high leverage, if it can't multiply, we will go bankrupt! But, Carter! Risk! Risk! It's still the risk of the son of a bitch!"

"I heard you said that you invested nearly 700 million in the Japanese real estate market? I won't say anything about it. Their economy is now improving. Even if the real estate market does not rise sharply, they should not lose much. But there is still the [-] yuan What about [-]? What did you do? And the [-] million in China.”

"I did some research recently, and their currency is destined to depreciate! You enter the market at this time, I. Are you trying to piss me off?!"

(End of this chapter)