Banks Pummeled by Low Rates

 

An article in the Wall Street Journal dated October 23, 2012 stated that due to the current “superlow” interest rates in the United States, the Banking Industry is experiencing its lowest net profit margin in three years.  

The eroded net profit margin (which tracks how much banks earn on funds borrowed from depositors which are in turn lent or invested) has caused sliding lending profits, causing banks to close branches, weigh additional fees and roll back customer favorites, such as free checking.  The average margin for the industry’s largest banks is at 3.12%, the lowest since 2Q 2009.  

Over time, these downsized profits are likely to accelerate a downsizing process that has halved the number of insured institutions over the past two decades.  The spread between banks’ deposits and lending rates has narrowed in part because of low Federal Reserve-influenced rates and decreased demand for loans amid the soft economic growth.  As their higher-yielding loans mature, banks are being forced to replace them with assets that carry much lower rates.  If interest rates begin to rise, these new loans may prove to be unprofitable. 

Higher costs for banking services could push more people out of the financial system altogether, adding to the millions of customers already considered as lacking access to affordable financial services.

Webinar from IIUSA regarding Regional Centers 2012 Annual Reporting (Form I-924A)

(Source: IIUSA) Regional Centers don't forget to get your I-924A completed and submitted to USCIS by December 29, 2012. Join IIUSA on 11/9 for a webinar regarding Regional Centers 2012 Annual Reporting (Form I-924A).

SIGN UP HERE -  http://iiusablog.org/events/iiusa-host-119-webinar-regional-centers-2012-annual-reporting-form-i924a/

Wealthy Chinese seeking overseas residency - EB-5 Immigration Investor Visa Program

(Source: BBC News) Great article from BBC News  that discusses issues on why wealthy foreigners are wanting out of their country, mainly the Chinese. The EB-5 visa program is an investment-for-residency program, handing out green cards as long as the investment can be shown to have created at least 10 jobs. In 2006 Chinese nationals were granted just 63 visas under the scheme. Last year the figure had leapt to more than 2,408 and this year it is already above the 3,700 mark. It means a tidal wave of Chinese money is currently pouring into US infrastructure projects. The investor program is open to any nationality but Chinese investors now make up 75% of the total.


Read BBC Article here : http://www.bbc.co.uk/news/world-asia-china-18966261

President Obama Signs Extension of EB-5 Immigration Investor Program

(Source: The White House)  On September 28, 2012 President Obama signed S.3245, a bill which extends to September 30, 2015 the authorization of the EB-5 Regional Center Program, the E-Verify Program, the Special Immigrant Non-minister Religious Worker Program, and the Conrad State 30 J-1 Visa Waiver Program for the next three years.

See statement here - September 28, 2012, the President signed into law

China Weekly Hangout: Why are the Chinese leaving their home country?

(Source:  The China Speakers Bureau - China Herald, Thanks to EB5 News Blog for sharing)  

Watch this 50-minute panel discussion video produced by Mr. Fons Tuinstra of the China Speaker Bureau.  It is very good insights on the reasons that Chinese are leaving their home country. Why are they going to the US and other countries? New trends in emigrations from China to the US by panelists Mr. Isaac Mao, Ms. Meixian Li and Mr. Richard Brubaker, who expects the number of Chinese leaving will be in the years to come give or take 20 million.

US House passes three year extension of EB-5 regional center program

On September 13, 2012, the U.S. House of Representatives passed S. 3245 (412-3) – which includes a three year re-authorization of the EB-5 Regional Center Program through September 2015.  Having passed by the Senate on August 2, the bill is now on its way to President Obama for signature – likely later this week.  Judiciary Committee Chair Lamar Smith (R-TX), Immigration Subcommittee Ranking Member Zoe Lofgren (D-CA), Representative Rick Larsen (D-WA), and Representative Peter Welch (D-VT) all spoke in favor of the EB-5 Regional Center Program re-authorization.

Visas-for-Dollars Program a Boon to Hotel Developers

New York Times published on September 6, 2012 a news article titled "Visas-for-Dollars Program a Boon to Hotel Developers" written by Janet Morrissey. In the past few years and current more hotel developers have successfully utilized EB-5 regional center program to raise funds for their projects throughout the United States. A main point in the article is that most foreigners who want to be involved with the EB-5 program are more concerned of receiving their permanent visa, than a high rate of return on their investment. 

See full article at  NEW YORK TIMES

For more information on EB-5 financing for development projects or for investment inquires,

CONTACT US TODAY!

2815 Monroe Avenue, Suite 2100

Rochester, New York 14618

Tel: (866) 763-6515

                                    EMAIL HERE or WEBSITE HERE