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Chapter 620 Mergers and Acquisitions Frustrated

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    After finishing 18 holes of golf, Wang Yaocheng and Mo Yuxuan sat side by side on the golf cart, driving all the way to the center of the clubhouse, and asked casually in the car; "Brother Yuxuan, how is the risk control preparation of HSBC Bank?"

    Mo Yuxuan replied; "HSBC Bank has always strictly enforced loan discipline. The credit threshold is much higher than that of American banks. The internal whole has gone through two rounds of detailed screening. The proportion of problematic subprime loans and non-performing debts itself is very low.  , involving approximately US$6.96 billion in North America, of which subprime loans are less than US$2 billion.

    We have dealt with the bank executives and credit departments involved seriously. This part of the subprime loan non-performing asset package was resold to Bank of America, and 660 million US dollars was withdrawn, and assets were written down by 1.27 billion US dollars.

    For this reason, more than 400 bank employees were dealt with, most of them were fired or transferred, and a small number were demoted and paid. It can be said that HSBC Bank does not have the problem of subprime loans.  "

    "Well, yes, we have to plan for everything."

    "Boss, are we overreacting? Such a small amount of subprime loans accounts for a little more than 3¡ë of bank loans, which is actually harmless."

    "Brother Yuxuan, financial discipline is discipline, and the rules that are not allowed to be violated are the red line. You must stick to the red line and never allow it to be crossed. Whoever dares to refuse to listen to you will lose his job, even if he has amazing talents.  Don¡¯t forget, the hundred-year-old Barings Bank in the UK collapsed because of a trader, and the lesson is not insignificant.¡±

    "Indeed."

    Mo Yuxuan is an experienced businessman, and now all companies at the consortium level have carried out large-scale non-performing assets sorting out, and the non-performing assets that have been screened out are dealt with and written down as soon as they are needed.

    Chen Shi, Director of the Audit and Audit Department of the consortium, led his subordinates to carry out inspections. Once any problems are found, they must be dealt with seriously, and they will never be allowed to hang on the current account.

    Such a big move cannot be justified only by strict financial discipline.

    Mo Yuxuan pondered for a while, and asked, "Boss, did you smell something?"

    "Brother Yuxuan, do you still remember Ray Dalio, the manager of Bridgewater Fund?"

    "Of course I remember, this guy made a lot of noise in the Mediterranean Manor last year, and the consortium can only respond positively. Rey Dalio has not stopped for more than a year, selling his own set of financial crisis theories everywhere.  Now it's a joke on Wall Street!"

    Having said that, Mo Yuxuan was startled suddenly, turned his head to look at Wang Yaocheng and said, "Boss, could it be"

    "Um."

    Wang Yaocheng nodded calmly, looked at the mountains in the distance and said, "The mountains and rain are about to come! There have been many signals to prove that Rey Dalio is not just worrying about the sky, false threats, but the world  There's a real problem with the economy."

    When the golf cart arrived at the center of the clubhouse, Wang Yaocheng and Mo Yuxuan got out of the cart, looked around at the beautiful scenery, sighed slightly, and continued;

    "Recently, the New Century Financial Corporation of the United States issued a profit warning for the fourth quarter, and the company's participation in subprime loan asset transactions may cause heavy losses.

    American International Group AIG and Wall Street investment bank Merrill Lynch have issued the same performance warnings almost in succession, targeting subprime loan asset transactions.

    This shows what?

    It shows that the subprime mortgage may be about to explode. Since 2001, the United States has raised interest rates 17 times in a row by the Federal Reserve Bank, which may become the last straw that breaks the camel's back.

    The game of beating drums and passing flowers can no longer be played. As the president of HSBC Bank and a senior banking executive, Brother Yuxuan should know how deep the subprime loan pool is?

    This involves tens of trillions of dollars of wealth, and almost the entire Wall Street is involved, as well as Swiss banks, German banks, and British banks as far away as Europe. At present, only small fish are emerging. As the situation ferments, it is possible  Giant prehistoric crocodiles hiding under the water's surface are also involved.

    According to public information;

    During the second and third quarters of 2007, there were large-scale home loan defaults across the United States.

    ? When the loan concession period ends, those old blacks with weak payment capabilities, South American immigrant groups, and low-income people with precarious jobs cannot repay their mortgages and can only choose to default.

    With the market economy in a good situation, these sub-credit groups overestimated their future income and their solvency. The financial game of Wall Street inflated the entire bubble and further magnified the risk  ¡­

    Hehe, sweet dreams will eventually wake up. When this huge financial chain breaks from the root, everything will be irretrievable.In 2006 and 2007, it reached a big level, and now it ranks 297th among the world's top 500 companies.

    If it can acquire the old Fortune 500 company ABB Group, it can drive Gree Group's ranking to rise sharply, reaching a position of about 150 in the world.

    In the face of increasingly fierce market competition, comprehensive equipment manufacturers are much more adaptable than individual manufacturers. Just like Disney Media Group compared New Line Films and DreamWorks, the two sides are not at the same level.

    Wishes are beautiful, but reality is cruel.

    Wang Yaocheng's attempt this time ended in failure. He looked at the white clouds floating in the blue sky and smiled;

    The financial turmoil that is about to sweep the world is coming, even the powerful UBS Group will not be spared, I hope you can still be tough when the time comes.

    Otherwise, hehe there will be a good show to watch.  (Remember the site URL: www.hlnovel.com
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