Louis, the CEO of Bank of America, is here. Please listen to what this man has to do.
¡°One look at Brother Lu¡¯s upright and reserved look and I knew he was up to no good. Sikong Ling was polite and polite, waiting for him to confess his feelings.
Louis praised the young man, saying that he was a once-in-a-century banker, like J. P. Morgan is strong.
The young man said proudly: "No, I am from a poor family and love to make money. I am far less aristocratic than J.P. Morgan."
Louis boasted again and then said weakly: "We have some problems with Bank of America's operations. I'm afraid you are the only one who has the strength to save us"
The young man was deliberately surprised and said: "No way? But I see that you just acquired Merrill Lynch today. It doesn't look like you are having operational difficulties anyway. 44 billion is almost half of the funds I spent on financing nuclear power. "
Lewis smiled bitterly and said: "This is all money borrowed by the Federal Reserve. They originally wanted to borrow only 30 billion, but then I talked about 40 billion. We refused to accept Merrill Lynch even if we borrowed 40 billion. This was so unreasonable, so I had to agree." The government will never let Merrill Lynch go bankrupt. Citibank cannot protect itself. Morgan just bought Bear Stearns, and the government forced Merrill Lynch on us. In fact, I also suggested to the White House that you buy Merrill Lynch. They said Bank of California has just been established and is not as strong as Bank of America. In fact, I know that you are very strong, probably above us. Assets and so on are all fictitious. Looking at your return on investment, you are not among the top ten banks. I can catch up, no, I can¡¯t even see your backs!¡±
The young man laughed: "You are quite aggrievedwhat? Are you in such difficulty?"
Louis smiled apologetically and said: "Well, you know, Paulson Fund and our over-the-counter transactions we have suffered too much, with an 80 billion risk exposure, Bank of America will definitely not be able to survive Unless I suggest, Bank of California acquires Bank of America, you see"
The young man shook his head: "Oh, the securities department is playing too hard Oh, what? Acquisition of Bank of America? This is so scary. This will scare the American people to death. Citigroup, the boss, is about to finish playing, and Bank of America, the second oldest, has been acquired. , it¡¯s so scary.¡±
Louis smiled apologetically again: "I can't care less. It's even scarier if Bank of America goes bankrupt."
Bank of America's structured investment institution is obviously not just doing over-the-counter transactions (non-public transactions) with the Paulson Fund. It is indeed suffering miserably. There are only two ways, one is to be acquired, the other is to be nationalized. It is estimated that the government will not Would put it out of business because it's really scary. But it is not impossible, because it is necessary to nationalize Citigroup and Bank of America at the same time. There is too much pressure on Congress and it will be difficult to pass it. If it operates like this, I am afraid that Congress will really force the White House to save one company and lose the other, just like Lehman Brothers and Merrill Lynch. And according to the logic of the White House, it is obvious that the larger Citigroup is more worthy of saving, and Bank of America is in a very dangerous situation. If a super commercial bank were to hit him during his days as CEO, Louis would have become famous in his life, so he was so panicked. Judging from his poor compliment, this big banker was not used to talking like this. It was really no solution anymore.
What Louis looks forward to most is for Bank of Canada to acquire Bank of America, because this will make it possible to hide the 80 billion risk exposure. Once the Ministry of Finance intervenes, his career will be over. He will be the fired CEO of Citigroup and Merrill Lynch. example.
The boy's request was also simple. Louis had to cooperate with him and wipe out the directors of Bank of America. Moreover, the boy had to go back and ask Ronaldinho and Paulson whether the deal was worthwhile. If not, he would have to risk it. The risk of scaring the American people to accept the Bank of America is really full. Bank of America is a public listed company, and it has an obligation to make money for its shareholders. Unlike Bank of California, which is still a partnership, it can do whatever it wants. Others don't know and have no right to interfere. As long as they don't ask the government for money, they can do whatever they want. How do you do it.
Ronaldinho and Paulson were sitting comfortably outside and had already been waiting outside. When Louis went out, the two brothers were chatting and looked very happy, which was in sharp contrast to Louis' sad face, so they saw Louis coming out. Shut up now and stop bullying others!
Ronaldinho doesn¡¯t care whether it¡¯s a good deal for you or not. When he heard that he could acquire Bank of America, he was so excited that his stomach turned red. He¡¯s really ignorant. Don¡¯t plot against him!
When the CFO and CLO (chief loan officer) of the Bank of Canada were called, even a mature and prudent old guy like old Rothschild blushed with excitement.
Sikong Ling frowned. If he only expected to get high this time in his life, of course he would be high after accepting Bank of America, but adding another strong man to the Kong Ling empire would become a thorn in the eyes of the American people. This is really not cost-effective. Be a dark wizard who secretly controls everything, don't be an arrogant berserker.
Paulson said: "Let's not use words like acquiring Bank of America in the transaction. Bank of Canada and Paulson Fund will take shares in Bank of America. It should be no problem."
That¡¯s true. As long as the government doesn¡¯t make noises, not many people will know about it., in order not to scare the people, the government will naturally cooperate. In fact, old friend Buffett's Berkshire Hathaway also holds equity interests in many banks, but if he didn't say it, no one would know. Buffett has held a large number of stocks in American Express and Wells Fargo for a long time.
On September 17, the net value of the money market mutual fund PrimaryFund was only 97 cents, falling below $1. The main reason was that after the bankruptcy of Lehman Brothers, the fund held shares originally worth $785 million. Lehman Brothers bonds became worthless. Previously, money market mutual funds were considered by investors to be among the safest short-term investment products for many years. This is the financial product that Sikong Ling advocates is 99% safe and used to replace fixed deposits. Although this time the stock fell below $1, it only lost a little. This is a proof of the reliability of the stock base, because it does not allow you to buy too many bonds from a single company, no matter how high the rating is. . Still, the first money-fund losses stoked global market concerns about traditional safe assets. On September 19, the U.S. Treasury Department had to immediately announce a large-scale money market mutual fund rescue plan. According to this plan, the Treasury Department can use up to $50 billion in funds from the Foreign Exchange Stabilization Fund to meet the requirements of public offerings. Money market fund assets provide insurance aimed at boosting market confidence and alleviating investor concerns about the ability of money market funds to withstand losses.
Because it is completely separated from financial institutions that like to trade subordinated bonds, the Bank of Canada, the world's largest monetary base, is very strong and has eye-catching yield performance, winning the favor of the market. Friends who like monetary bases have transferred to the Bank of Canada monetary base, 17 Since Japan's first currency base suffered a loss, hundreds of billions of funds have been flowing into Bank of Canada's account every day! After the release of the rescue plan on the 19th, the momentum slowed down, but there are still a lot of customers flowing into the Bank of Canada. Of course, there are also quite a few customers who are not confident about the currency base of the Bank of Canada and lock the interest for three to six months.
JPMorgan Chase and Wells Fargo are the banks that performed best in this crisis. They would rather give up the market than engage in subprime mortgages, but they are not as thorough as the Bank of Canada. I admire the performance of the Bank of Canada very much. I don¡¯t accept it. This is the rhythm of the king.
The five major investment banks are dead and injured. Apart from Goldman Sachs, which became a winner through short selling like the Bank of Canada, Morgan Stanley is the only one with a solid foundation that can still survive, like a strong man wielding a machete with his face covered in blood. , yelling: "Don't save me, I can still hold on!"
On September 21, the Federal Reserve announced that it had approved the transformation of Goldman Sachs and Morgan Stanley, the two remaining major investment banks on Wall Street, into bank holding companies and accepted supervision by the Federal Reserve. Just a week ago, there were four major independent investment banks on Wall Street. Within a week, the independent investment banking model was completely over.
The global stock market has fallen spectacularly in the past few days, with 7 trillion US dollars evaporating from the market. Asia and Europe were spared. The global financial market has been violently turbulent, the foreign exchange market has fluctuated violently, the inter-bank market has been severely hit, liquidity has dried up, commodity prices represented by oil prices have plummeted across the board, and Iceland is facing bankruptcy. The Federal Reserve, Bank of Canada, European Central Bank, Bank of England, Swiss National Bank and Bank of Japan made a rare announcement to join forces to rescue the market.
On September 25, Washington Mutual Bank, which was once equal to the core capital of Bank of Canada, was taken over by the Federal Deposit Insurance Corporation of the United States, becoming the largest bank failure in U.S. history. It was later acquired by JPMorgan Chase Bank for a cabbage price of US$1.9 billion. When the Bank of Canada was first established, Sikong Ling used Washington Mutual as an example and claimed that it was the tenth largest bank in the United States. In the blink of an eye, it disappeared.
The crisis in Iceland can be said to be the most serious in history in terms of the size of the country. The banking industry was involved in a large number of subprime mortgage products and suffered heavy losses. All three major commercial banks went bankrupt. Let alone liquidity at this time, the Icelandic government has banned foreign exchange transactions, and everyone knows that the Icelandic currency has completely collapsed. All foreign exchange in Iceland is used to purchase necessities, food, medicine and oil, and all other imports and exports are frozen.
aquaBounty, a subsidiary of Sikong Ling, was building a fishery in Iceland. Unexpectedly, disaster struck from the sky, foreign exchange transactions were banned, and all banks were closed. This quickly asked BOSS for help.
At this time, the only one and the largest of the three major banks in Iceland, Kaposin Bank, was still talking to the government about how to go bankrupt gracefully. People from the Canadian Bank went to ask: When will your financial system resume operation? Our fishing ground suddenly ran out of money!
The savior has come. The Bank of California's strength in the financial crisis is world-famous. Kaupshing Bank turned to the Bank of California to negotiate a bailout. Finally, the Icelandic government agreed to the Bank of California's full acquisition of Kaupshing Bank. The latter was saved from bankruptcy, and Agree with Kaopuxing Bank to conduct foreign exchange transactions through hedging. The so-called hedging is to buy a currency and sign a contract to sell the same amount of the currency at a certain time in the future. This can avoid the fluctuation of the exchange rate. Of course, there will be some transaction fees, but this is visible and predictable. , which is much stronger than the collapsed Icelandic currency.
Kaopsing was the only commercial bank that could still conduct foreign exchange transactions at this time, so it was naturally overwhelmed. Its position as the largest bank in Iceland was at an absolute advantage. Most of the huge losses of the original Kaupshing Bank were borne by the Icelandic government, which can be regarded as reducing the burden on both parties. At this time, the entire national financial system of Iceland was depleted of liquidity. Even the little money to buy food, medicine and oil was borrowed from Germany and Denmark. When Canadian silver entered Iceland, it was a clear spring of water for the thirsty Icelandic people. , so that Iceland's various industries will not suffer widespread losses.
Kaopsing Bank has successively acquired a large number of troubled airports, ports, fisheries, metallurgical industries and other industries, which has greatly accelerated the recovery time of Iceland's economy, and it has also received huge returns. Once everyone else has no money and you have money, it's the best time to pick fruits. Icelanders don't know whether they should be grateful to ZSK or hate him. Ordinary people are more grateful. The country is bankrupt. This From time to time, there is a large sum of money that saves everyone from drowning. This is considered a good person, and it is right for people to make more money.
Because of this crisis, Iceland also realized that it was not strong enough and could not remain relatively independent from the European Union like the United Kingdom and Switzerland. Iceland used to be quite arrogant, but now it has realized its mistake and applied to become a full member of the European Union.
Bank of America quietly submitted major equity change applications to the Office of the Controller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, the Department of Justice, the Securities and Exchange Commission, the Futures Trading Commission, the Office of Thrift Institutional Supervision, and the Federal Trade Commission under the U.S. Department of the Treasury. Nearly half of its directors followed suit. The board of directors agreed to retire, and a large number of new directors, mainly Paulson Fund and Bank of California, took over Bank of America.
At this time, the U.S. government is extremely busy with the rescue plan. The original plan submitted by the Treasury Department to Congress was only two and a half pages, involving a rescue plan of up to 850 billion U.S. dollars. There was only such a description, and the Secretary of the Treasury also said, "We have no choice." , the members of Congress were so angry that they cursed in the street. The first submission was rejected without any suspense. These days, they are arguing about how to balance the interests of all parties.
The change of ownership of Bank of America did not attract the attention of the White House. It was thought that the original directors had lost their hearts and had to leave sadly. This is normal in the season of uncertainty, so various institutions hastily approved Bank of America's application.
This plan of Bank of America is very stupid. It not only introduces a large number of directors, but also puts the Paulson Fund, whose capital structure is relatively opaque, ahead of the Bank of California. But the fact that the government didn¡¯t pay attention doesn¡¯t mean that the media didn¡¯t pay attention. Who is ZSK? Wherever he goes, there is no second person who can make the decision. How can an extremely ruthless capital tycoon really just invest in shares and be ranked behind the little-known Paulson Fund?
After some digging, the New York Times headline published the headline: ZSK absolutely controls Bank of America. The article stated that according to reliable sources, most of the Paulson Fund's funds come from ZSK himself, and several of the newly added Bank of America directors are people with close ties to Bank of Canada and the Paulson Fund. A conservative estimate is that ZSK controls 30% of the voting rights of Bank of America. The other small directors have no say at all, which is equivalent to turning Bank of America into the private property of ZSK.
Since the outbreak of the financial crisis, although the Bank of California has been strong, it has hardly appeared in the public eye. Everyone has watched JPMorgan Chase and Bank of America acquire this and that, bail out this and that, and they all feel that the Bank of California is so low-key. The resultNima added silver to accept Bank of America? Holy crap.
Citigroup has lost its virtue. In the future, Bank of America and JPMorgan Chase will be the leaders. Now, at a glance, Bank of America and Bank of Canada are one, and they are definitely the best in the world. ZSK¡¯s bank can be described as a financial nuclear-powered aircraft carrier.
Paulson's chicken-thief plan was a complete failure. In fact, if the Bank of Canada incorporated the tens of billions earned by the Paulson Fund into its core capital, it would also reach the top spot in the world. It would not need to be as eye-catching as the Bank of America. Alas, what a mistake. Sikong Ling was like an old wealthy landowner who was carrying a sack of money but pretending to be leisurely. However, the sack broke and all the big bills inside fell out, attracting pedestrians on the road to watch.
The media in the United States have ridiculed the young man, knowing that you have hundreds of billions of money, and another hundred billions is not a shocking thing. The problem is that you are hiding it like this.
Paulson quickly took Ronaldinho to see the BOSS to apologize. He did not dare to go to the BOSS alone, fearing that Master Sikong would flip the table in anger and scare the second uncle of the Bao family to death. What he mainly said was that my chicken thief plan was unreliable and I didn't do a good job of keeping it secret. It caused trouble for you, the old man, and you deserve to be punished!
Sikong Ling didn't say anything, and left them to eat. As they ate, Paulson relaxed. The boss really didn't take this matter to heart. If he could hide it, he would be Cao Aha. What will you do if you turn over?
¡°Actually, people all over the world still look down upon Cao A for hiding it, thinking that he only earned one US dollar, but in fact
Citibank is in danger of bankruptcy, and its stock price is in free fall.The peak of US$200 dropped to the lowest of US$1. Sikong Ling personally managed the fragmented fund to hunt for the bottom, and controlled nearly 50% of Citigroup's shares with a total holding cost of 15 billion. Citigroup is now a shadow figure in his hands.
The Great Panic caused even outstanding banks like JPMorgan Chase to be sold off. The stock price dropped from nearly 50 US dollars to 15 US dollars. The fragmentation fund accumulated 30% of JP Morgan stocks, consuming only 20 billion US dollars.
Wells Fargo was still not spared, with its stock price falling from US$40 to US$8. The Fragment Fund took action again, controlling about 30% of Wells Fargo's equity at a holding cost of 15 billion.
Now, the boy has completely mastered the top five banks that manage 50% of the wealth in the United States. Enough is enough. He has really made enough in this life. If anyone talks to me about money again in the future, I will vomit. He has made too much money. Any more would be disgusting.