Chapter 239: A Big Project

"Do you think if I say it's inconvenient, you'll just go back? Or should I personally pay for your stay here for two days, as if you're on vacation? How about that?"

Patting the two girls beside him on their butts, signaling them to leave, Carter reluctantly led Patterson and his companion to a relatively secluded beach table and sat down.

Just as Patterson wouldn't accept that he came here merely for a vacation, Carter knew one sentence wouldn't dispel their intentions. Since the issue had arisen, it had to be faced.

"I believe you understand my purpose, Mr. Black. Let's be straightforward: a one million dollar low-interest loan, at 8% annual interest, over five years. What do you think?"

Once seated, Patterson got straight to the point. Offering Carter merger funds at an 8% annual interest rate was a significant concession for the FDIC. However, compared to the potential losses if Bass Bank completely collapsed, this small loss seemed acceptable.

However, this condition clearly did not satisfy Carter. Shaking his head, he straightforwardly responded:

"Mr. Patterson, I admit your offer is sincere, but it's not enough. This doesn't solve the fundamental problem."

"Bass Bank's reputation is a major issue, and the risks are very uncontrolled. Moreover, for our savings bank, profitability is almost entirely tied to urban development. Over 80% of our profit comes from medium- and long-term loans. And, incidentally, aside from being a banker, I'm also an entrepreneur."

"To promote the profitability of my other enterprises, I'm currently reducing the bank's profits, even operating at a loss, to inject enough money into the market and stimulate my other industries' profits. I use these profits to cover my losses in the bank."

"So, clearly, if my other businesses don't need Argyle's market or labor—or if Argyle can't provide me with any benefits—taking over Bass Bank would only result in meaningless losses. And with Mr. Bass's recent example, I wouldn't dare isolate Bass Bank and implement much higher interest rates than my other two banks."

"In this situation, a one million dollar loan is meaningless to me. Unless you're willing to offer me a high-interest-free loan to cover my losses in taking over Bass Bank, I won't agree to this."

Carter's point was clear. Patterson, who had flown from Georgia to Hawaii, understood that at this moment, only Carter had the capability to take over Bass Bank.

The reason was simple: if Carter was concerned about profitability, wouldn't others be too?

As Pearson's neighbor, Argyle had also seen a significant population outflow to Pearson, then to Douglas due to construction. These people took their funds with them. After intentionally cutting loans and with the current consumer base fleeing, Argyle's current situation was arguably the worst in central-southern Georgia.

Unemployment had soared to a staggering 20%. On average, one in five families had completely lost their source of income. With Argyle's 15,500 households, besides the nearly 1,000 already fled, the remaining 14,500 had around 2,900 families in a state of total income loss, relying solely on savings and questionable loans.

Meanwhile, people were leaving at a rate of several to a dozen households per day, further worsening Argyle's situation. Without timely intervention, Argyle could deteriorate significantly.

And it might take years of economic recovery for people to return...

"Three million! At an annual interest rate of 6%, Mr. Black. This matter concerns not only the FDIC, but also Argyle and the Atlanta Fed. At this point, I won't mince words. If your bank steps in, even if you do nothing, it will stabilize the public's confidence. This will buy us a window of time to seek solutions."

Rubbing his forehead, Patterson took out a document from his briefcase:

"To stabilize Argyle's situation and ensure healthy capital flow, ordinary businesses are useless. This is a document from Argyle City offering tax incentives, rent reductions, and even free land to attract major enterprises."

"If that doesn't work, the only fallback is government-guaranteed loans to start large infrastructure projects. But with just Argyle's guarantee, it's not enough. Argyle is lobbying nearby cities for joint guarantees, which could also help them solve some employment issues."

"You have a construction company, don't you? Such a large project, is it not profitable? If we can get support from surrounding cities, along with joint guarantees from Douglas and Pearson, the Atlanta Fed will be more likely to approve a loan of over sixty million, which shouldn't be a problem."

"With this money, you can build anything—roads, highways, or other revenue-generating facilities. For example, if you build a highway, the annual revenue won't be small. I believe this could offset your losses and bring substantial profit."

"As long as Argyle's employment and economy are stable, wouldn't Bass Bank make money?"

"No, no, Mr. Patterson, your proposal is superficial. Indeed, a massive loan can alleviate the immediate problem, but as I am currently troubled, what happens to the population after the road is built?!"

Although tempted by the idea of building a road, Carter quickly dismissed it.

Apart from the aforementioned issues, there were already plenty of roads connecting north and south. In the future, the U.S. road network would remain unparalleled worldwide.

In the '20s and '30s, during massive development, a lot of roads were built. Even in the future, the U.S. would lead the world in total road mileage. Currently, the U.S. had an exceptional road network.

These roads had passed their toll periods. Why would anyone use your toll road when there were free alternatives?

The most heavily trafficked routes, blocking Florida's southern exit, were north-south highways. And there were plenty of them. The return on building roads wasn't as high as imagined!

As for other large projects capable of employing a large labor force at once, Carter couldn't think of any. Without a solution to this problem, the plan was unfeasible!