Chapter 141: Competing to See Who Can Endure More

"Of course! Just like I told you earlier, Mr. Patterson! I have ample financial reserves, and I can assure you that even if all the loans from Forest Bank turn into bad debts, I can handle it!"

Cutting a piece of beef, Carter didn't rush to put it in his mouth. Instead, he flashed a confident smile at Patterson.

At this point, everything that should be known by the other party was already known. As long as the total amount of funds actually controlled wasn't exposed, Carter didn't need to pretend anymore. Now, he needed to display a bit of strength to boost the confidence of his temporary partner, Patterson:

"Even if we add the four million plus for paying depositors, it's not a problem. Four million three hundred thousand in deposits, plus two million seven hundred thousand in loans, the maximum loss would be just over seven million... Rest assured, I can handle it!"

Just over seven million...

The piece of beef Patterson was swallowing almost got stuck in his throat. He gulped down a mouthful of wine to wash it down and then coughed awkwardly:

"You... You can't put it like that. You're in business to make money, after all. Now that we're friends, I can't just sit by and watch you lose money continuously..."

Patterson couldn't help but trust Carter's deadly confident words, especially recalling the Vacheron Constantin watch on Carter's wrist. After all, someone willing to spend tens of thousands of dollars on a useless watch theoretically should indeed have over seven million in funds, maybe even more...

"When I get back, I'll require the three banks to submit financial reports to me every month. Every two months, I'll send someone down to inspect. I'll do my best to share the burden... No, make that financial reports every half month..."

After being reassured by Carter's actions, or rather his discovery, Patterson regained his energetic demeanor, coughing awkwardly before continuing.

Seeing that Carter wasn't in a hurry to eat, Patterson put down his knife and fork, tapping his fingers lightly on the table as he formulated his plans, or rather, his joint plans with Black Bank:

"Given today's situation, those inspections won't be of much use. They won't leave us any evidence. I just hope you can endure these few months..."

"They can't just cut off loans without reason; the pressure on them won't be small either. If they do, there will be an increase in local unemployment, which will put pressure on the city government, and they'll face a rise in bad loan rates and a decrease in cash deposits..."

"Just three months, I estimate they won't be able to hold out. Maybe even less than three months, around two months I might be able to catch them slipping..."

"Mr. Patterson, sorry, I may need to interrupt. Firstly, I agree with what you said. But during this period, our losses will be significant! The unemployment situation in Pearson is already not optimistic. If this happens... the losses we will have to bear might be more than seven million. If possible, can we speed up this process?"

As Patterson was enthusiastically outlining his plan, Goodman suddenly interjected. In Goodman's mind:

Old Bass could threaten the FDIC or Forest Bank by forcing demand compression through loan cuts, thereby disrupting Pearson's economy. As Patterson mentioned, it's a strategy of mutual harm. The competition was about who could endure more...

But there was a problem: it was three banks against one! Their loss of eight hundred meant Black Bank had to put up three thousand to counter it.

People need food to survive! They can't go long without food or income. If Pearson's unemployment reaches a critical point, it means the bank would have to shell out more money to support them through loans.

The logic wasn't hard to grasp, not to mention the pressure from the city government and the responsibility of the savings bank, and the inability to declare bankruptcy again. The objective of acquiring Forest Bank was to make money, after all!

To make money, they needed local people to trust them, to deposit money, and to borrow from them. If Pearson residents struggle to survive and the bank closes its doors when they most need loans, no one would step in when the bank reopens. That would render the acquisition of Forest Bank pointless, and all the initial investments would be wasted...

"It's hard to say... Mr. Goodman, based on the current situation, their assets are still quite strong. Whether the cycle can be sped up depends on them, not us..."

Patterson understood Goodman's point immediately. He could only helplessly spread his hands:

"If they launch a fierce attack right away, directly cutting off loan channels, then as long as you can withstand this wave of assault, their downfall will come quickly. If they proceed steadily, it might take two to three months to end."

"But everything is relative. If they slow down their pace, your pressure will correspondingly decrease, won't it?"

"Exactly! Uncle Goodman, you don't need to worry too much. There's a Chinese saying: when soldiers come, block them; when water comes, cover it with earth! With our current strength, are we still afraid of them?"

"Hahaha, indeed! Let them come, we'll counter every move they make..."

...

...

"Carter, why? I need an explanation! Even if we can't speed up, we could have asked for more benefits. For instance, the future borrowing limit from the FDIC, or Bass Bank..."

On the way back to Douglas, Goodman, who had been suppressing himself for a long time, finally couldn't hold back his temper:

"You're the boss, I shouldn't be saying too much. But if we follow Patterson's plan and the cycle drags on, the cost we'll incur will be unimaginable! I know you're determined to get Forest Bank, and paying more is fine as long as we can afford it. But you shouldn't have agreed to his terms so quickly! The FDIC isn't a benevolent entity! If you agree to them like this..."

"It's alright, Patterson is a smart man; some things don't need to be said too directly. Besides, the FDIC isn't benevolent, but are our peers any better? Or are you worried about being ostracized by the industry?"

Looking at the scenery flashing past the window, Carter grinned. Coming to this meeting was truly eye-opening...

"But our peers, no matter how bad, are still..."

"Still what? Our own people? Or a community of interests? Maybe now we share the same stance, but what about in a few years? When they can't hold out, do you think they won't come to us for that loan? When they come knocking, will we repay?"

Goodman was at a loss for words. He wasn't like old Blake, the kind-hearted one. Want us to repay before the due date? Given the current environment, let's see if they can last until then...

"But our money is limited too. Investing so much into one bank, what about the future..."

"One step at a time, let's solve the present first. Goodman, you must understand, ever since we borrowed that six million, we're no longer part of Georgia Bank's inner circle..."