Backed by abundant cash, the run on East West Bank quickly subsided, and by the third day, there were no large-scale withdrawals, and some users who had withdrawn their money in panic quietly returned to redeposit their money. East West Bank quickly returned to normal......

Robert and all the bank staff were excited.

Tang Bao was still as calm as usual, it was expected that the run would calm down, and there was no need for him to surprise something that was already doomed.

……

"Boss, East West Bank has successfully weathered this run." Robert said excitedly.

Tang Bao smiled slightly and remained silent.

Weathering the crisis is nothing, he needs East West Bank to become bigger and stronger. At the moment, East West Bank is a small community bank, with a head office and three branches, and it is not even a big bank in the San Francisco area, let alone in the whole of California or the whole of the United States, it is just a very humble small bank.

on this.

Tang Bao naturally couldn't be satisfied.

California is a large continent in the western United States, the third largest in the United States in terms of area and the most populous state, with more than 30 million people.

This is the perfect place to start expanding East West Bank.

And.

Tang Bao remembered that the real estate market in the United States was overheated and a bubble appeared, and soon a savings and loan crisis would be triggered by the real estate bubble, which caused a large number of small and medium-sized banks and savings and loan institutions to fall into bankruptcy and collapse due to the loss of a large number of real estate loans, and even some large banks were not spared and fell into a liquidity crisis.

California is the hardest hit area of the crisis......

in the office.

There are only two people, Tang Bao and Robert.

"Robert, I want to know how many of the loans within East West Bank are real estate loans, including corporate loans and personal loans?" Tang Bao asked, although he had hired a special accounting firm to do a financial inventory before acquiring the bank, he only knew that the bank's finances were fine, but he did not pay attention to the company's loan structure. He has to prepare for the coming crisis!

Forehead.

Robert came back from his excitement and looked at Tang Bao in surprise, secretly wondering how the boss, who had always been indifferent, suddenly cared about this matter.

"Well, before, there were about $1.9 billion in loans, most of which were corporate loans, and private loans accounted for only about 7 percent. More than 80% of all loans are real estate business loans, because in recent years, the real estate boom in the United States has made it very safe to lend money to real estate companies, and the loan interest rate is also higher. Robert told the story of everything.

"Safety? What's going on with those two $120 million loans? It seems that they are all loans from real estate companies. Tang Bao asked rhetorically.

Real estate, security?

Tang Bao doesn't know what to say, but it's no wonder Robert, now, the entire real estate market in the United States is indeed a prosperous scene, large and small banks have lent money to real estate companies and buyers in order to make huge profits, and some even personally invested in the real estate industry.

No one would have imagined that the real estate crisis would suddenly erupt.

"Well, it was an accident. The owner of the real estate developer was a gambler, and he secretly took the funds used to develop commercial housing and sent them to the casino...... I ......" Robert defended depressedly, he also felt very unlucky, the real estate boss who went to other banks for loans, all of them worked overtime to build a house and then sell it after getting the money, and the real estate boss he met turned out to be a bad gambler.

Tang Bao was noncommittal.

"The real estate developer committed suicide after coming out of the casino, and the company and the real estate project were also seized by the court, and we are the largest creditors, and we can get some of the funds back, but it will take time, maybe half a year, it may be longer...... These two loans, a total of $120 million, I estimate that at least half of them will be lost, and only $60 million will be recovered. Robert heard Tang Bao mention the two loans, so he talked about it in detail.

No matter what kind of business, it is impossible to make a profit without losing money.

Tang Bao didn't say much, not to mention that if it weren't for the problems with these two loans, he would not have been able to seize the institution to buy the bank.

He understood: Robert said so much, on the one hand, to introduce the whole incident, and on the other hand, to express his point of view, real estate loans to make money, everyone does this.

"Well, the proportion of real estate loans is too high, and it has to be adjusted as soon as possible. You have to understand that if the real estate market is cold, these loans may not be recovered, and it will be an unimaginable disaster. We must prevent these unknown risks in advance......" Tang Bao expressed his opinion.

"Huh, boss?"

"Questions?"

Tang Bao said with a frown.

"The reduction of loans in the real estate industry will inevitably have a great impact on the profitability of banks, and it is a pity to give up this market." Robert reluctantly said that the real estate industry is very profitable, and he used to manage Redwood Community Bank mainly by making a profit. Now that he heard Tang Bao's intention to reduce this business on a large scale, he was naturally very unhappy.

"But the stakes are also huge. By the end of this year, the proportion of real estate loans must be reduced to less than 10% if the real estate loans can be recovered as soon as possible, and those that cannot be recovered in advance will be transferred to other banks. Tang Bao didn't plan to talk to Robert more, and said undoubtedly.

Hear the words.

Robert couldn't help but laugh and said, "Boss, what is the reason why you are so unoptimistic about the U.S. real estate market?" ”

"Not bad. U.S. real estate is already overheated and a crisis could erupt at any time, and we must strengthen our efforts to control this risk. Tang Bao said affirmatively.

"Okay."

Seeing that Tang Bao was so insistent, Robert could only agree. With only two months to go until the end of the year, real estate loans totaled more than $1 billion, but it was easy to adjust and sell them all with a slight price reduction.

He also made this clear to Tang Bao.

on this.

Tang Bao naturally said that there was no problem, it would be good if he could sell it. If it is rotten in your hands, it may become a bad bank debt next year...... Although he had money, he could not stand idly by as East West Bank was about to lose money. It is a pity that the supervision of commercial banks in the United States is still relatively strict, and commercial banks are strictly prohibited from engaging in investment banking business, which means that East West Bank cannot carry out high-risk business such as stock venture capital, which is undoubtedly very annoying news for Tang Bao.

These thoughts flashed through Tang Bao's mind, and he knew that this bank separation system in the United States would soon be slowly broken, so there was no need to hurry. East West Bank is just a small bank, with a single business, Tang Bao's most urgent goal at present is to rapidly expand the scale of the bank, even if it can't immediately grow to Citibank, Bank of America, Wells Fargo, Chase Manhattan Bank, JPMorgan Bank and other giants, but it can't be too big, otherwise he will compete with these financial giants in the future.

Expand, expand, expand!

That's something East West Bank has to do, and it's about to have a big opportunity to expand.

"Robert, in addition to shrinking real estate lending, East West Bank needs to expand, and I want East West Bank's business to not just stay in the San Francisco area, it needs to spread all over California, and even the whole United States, and of course it is my ultimate goal to run East West Bank into an international banking giant." Tang Bao said to Robert solemnly, indicating that every word he said at the moment was not a joke, and he was very serious.

Robert was stunned by Tang Bao's words.

He was very shocked, he didn't expect the Chinese boss in front of him to have such a big ambition, but he quickly became a surprise, wouldn't it be even more exciting to be able to follow such an ambitious boss.