Chapter One Hundred and Thirty-Four: Bank Sells for Fifty-Six Thousand

"Hahaha, Goodman! Long time no see!"

"Long time no see, my old friend! Let me introduce you, this is Mr. Barkley, the manager of Fitzgerald City Garden Bank. He's our senior colleague..."

As Carter arrived at the Best Western Hotel in Meiken with Goodman, conversations like this repeated over and over again, like a stuck reel of film.

With his hair neatly combed and dressed in a handsome suit, Carter wore a sincere fake smile as he shook hands and exchanged greetings with his colleagues one by one. Occasionally encountering a few individuals whose warmth seemed dubious, Carter would engage in brief, obligatory hugs.

However, such encounters were few and far between, perhaps due to the bankers' reserved nature or the lackluster economic environment that had dampened people's spirits. To still be able to smile in such circumstances, Carter thought these people must have mastered the art of composure.

Of course, during this process, Carter inevitably encountered his "creditors." Reading their expressions, Carter noticed that many of them seemed rather uneasy, particularly old Porter from Portnewt Bank, whose face appeared particularly odd.

As the crowd entered the hotel conference room and took their seats, a man in a similarly formal attire stepped onto the stage. With a somewhat relaxed tone, he opened the symposium, or auction, regarding the bankruptcy restructuring of Pearson City Forest Bank.

Interestingly, although the meeting was about Pearson City Forest Bank, its owner was conspicuously absent. Moreover, it was a tacit agreement among the attendees not to mention him...

In the ears were the host's humorless, or rather, entirely inappropriate jokes, while in the eyes were a group of suit-clad individuals, who looked presentable but lacked substance, the so-called banking elite.

Carter suddenly felt a bit ironic. Reality, oh, reality...

Carter believed that last year, and before that, when these well-dressed individuals met the owner of Forest Bank, they were just as enthusiastic as they were meeting him today.

"The purpose of your presence here should be clear to everyone, so I won't waste words! First, let me introduce myself. Some of you may not know me."

Unperturbed by the lack of response, the host continued with a smile, "My name is John, John Patterson. I come from the Bankruptcy Management Department of the Federal Deposit Insurance Corporation, and I am also the head of the bankruptcy restructuring working group for Pearson City, Forest Bank. The FDIC has authorized me to handle post-bankruptcy issues regarding Forest Bank..."

"Let's get to the point!"

"Pearson City Forest Savings Bank, established in 1923! With such a long history, even predating our Banking Act legislation! In its 57 years of operation, Forest Bank has accumulated many high-quality clients. We were surprised and saddened by its bankruptcy. After careful review, we believe Forest Bank still maintains a very high credit rating..."

As Patterson spoke, Carter's expression grew stranger, while the others maintained an expression of indifference. It seemed like they were listening attentively, but in reality, they were just going through the motions...

Is this what elite meetings are like? Shouldn't they be discussing profit distribution seriously and then conspiring to divide the Pearson market? This capital feast, how could it be conducted like a product launch or a promotional event?!

"Don't worry! We haven't reached the main part yet. These are just formalities, meaningless to listen to!"

Noticing Carter's odd expression, Goodman leaned in and whispered in his ear. He himself had felt similar on his first attendance at such a meeting with old Brooke.

The scene before him was too much for Carter's sensibilities! And the real excitement was yet to come...

"Next, let's look at the assets and liabilities of Forest Bank!"

"Smack!"

Carter's knee was suddenly nudged by Goodman. Although Goodman's reminder was unnecessary, Carter realized that the climax was approaching because, at this moment, many of those "elite" figures, who had been daydreaming, began to pay attention. Except for a few who were genuinely uninterested or had decided to tag along for the free meal, most now perked up, ready to listen.

"First! Forest Bank's total assets: $4,678,400! Total liabilities: $4,635,130!"

Along with Patterson's explanation, many people pulled out pens and paper to jot down these crucial figures.

"Of these, deposit liabilities: $4,398,430; borrowed liabilities: $230,000; settlement liabilities: $6,700!"

Quickly jotting down these numbers, Carter performed a subtraction. Total assets minus total liabilities equals bank capital, which amounted to $43,270...

The bank's asset seemed absurdly low; no wonder it was forced into bankruptcy liquidation...

Even though the meeting hadn't yet touched on Forest Bank's risky assets, just this $43,270 in capital, compared to its over $4 million in total assets, indicated how precarious its situation was.

"Now, let's take a look at Forest Bank's risky assets, that is, how much money it has lent out... A total of $2,741,250! Currently, Forest Bank has $1,671,800 in depositor funds."

"Check account openings: 48,642! Savings account openings: 21,240; Fixed deposit account openings: 10,163!"

"Gentlemen, I must say, to have so many account holders in a small town like Pearson City, with less than sixty thousand residents, speaks volumes about Forest Bank's excellent reputation locally!"

"However, behind the good reputation and decent revenue, risk control is something we bankers, especially savings bankers, cannot afford to ignore! Forest Bank's lesson should serve as a warning. In future business operations, attention to risk control is paramount!"

While Patterson started to ramble again, Carter performed another calculation. With Forest Bank's capital of $43,270 divided by risky assets of $2,741,250...

The result: 1.6%...

Not a promising situation!

Seeing the 1.6% displayed on his notebook, Carter sighed helplessly.

Bank risk management these days, it's really lacking. But if you neglect it to this extent, and even shy away from doing the bare minimum, then it's no wonder the FDIC is coming after you!

Representatives from various banks, who had also calculated Forest Bank's asset risk ratio, shook their heads in disbelief. With such a risk exposure, even though Patterson's subsequent revenue table showed decent profits, many people discreetly withdrew their eager interest. It seemed they were ready to back out and not get involved in this mess...

Patterson, sensing the reluctance, knew he couldn't delay any longer. If he procrastinated further, Forest Bank wouldn't be easy to sell. So, he quickly announced the bid:

"Fifty-six thousand dollars! For just fifty-six thousand dollars, you can fully acquire ownership of this bank!"