Chapter 111 Huge Loans

  An hour later, Andrew and Xia Jingxing drove to the San Francisco branch of First Securities.

After    parked the car, the two were led into a conference room by Liu Hai, who was greeted by the station door.

  A few steps into the meeting room, Xia Jingxing didn't communicate with Liu Hai a word, and didn't want to be too close, so as not to involve the other party, but gave the latter an encouraging look.

   Liu Hai almost understood the meaning. After leading the two of Xia Jingxing into the meeting room, they left the meeting room with a little anxiety and waited outside to discuss the results.

  Five middle-aged Chinese people, both men and women, sit at the long conference table. They are all middle and senior management of First Securities.

  They shook hands with Xia Jingxing and Andrew, and after they informed each other of their identities, they began to talk about the topic.

   "Mr. Xia, have you considered it?"

  Xia Jingxing gave Andrew a glance, and the latter replied on his behalf: “We decided to find an accountant and tax accountant to file a new tax return.”

  Hearing Andrew say this, the five top executives of No.1 Securities all secretly breathed a sigh of relief.

  Taxes of nearly one million dollars, they were also afraid that Xia Jingxing would die and would not pay taxes.

  In this way, it is also difficult for them to do it, and it is impossible to force Xia Jingxing to file a tax return.

  What if Xia Jingxing became so angry that he dragged First Securities to an end?

  I paid the tax honestly. The years are quiet and everyone is in peace.

"but…"

  Andrew spoke again, “In this matter, First Securities did not fulfill its due reminder responsibility, or misled customers...

  When my client Mr. Xia opened an account with First Securities, he was told that he could open an account with a mainland ID card and be exempt from capital gains tax...

  Now that it has incurred a capital gains tax of up to 900,000 US dollars, First Securities must compensate for the loss of Mr. Xia Jingxing. "

  Xia Jingxing did not speak, and watched the faces of several securities company managements silently.

  Sure enough, when Andrew said so, the faces of several executives suddenly turned black.

  Xia Jingxing mourned Liu Hai for three seconds in his heart. Once he asks for compensation, Liu Hai will inevitably be punished by the company. This is beyond doubt.

  But there is no way. Business belongs to business, and favor belongs to favor. One yard is one yard.

  In this matter, obviously you can’t afford to suffer the loss silently just because you have friendship with Liu Hai.

  On the side of Liu Hai, he won't make the other party embarrassed. He has arranged all the places to go. It depends on whether he wants to go.

  "Did our company's broker make such a guarantee when opening an account? Mr. Andrew, you have to show evidence in everything!"

  The senior executives of First Securities have all met the world, and they are not ashamed of the lawyer Andrew.

  Andrew smiled faintly, “It’s okay if you don’t admit it. Mr. Xia and two friends also opened an account with First Securities. They have heard the same promise that they can serve as witnesses when they appear in court.”

   "Mr. Andrew and Mr. Xia, there is no need to make such an unpleasant disturbance."

  A female executive among the five spoke in a very gentle tone.

  She continued: “When Mr. Xia came to First Securities to open an account, he could not actually open a securities account because he did not have a social security number.

  Our First Securities provides such an opportunity, Mr. Xia can make such a huge profit.

  If it really goes into court, Mr. Xia’s profits may be regarded as "illegal income" and be recovered by the SEC according to law. "

   Andrew shrugged and said calmly: "Compared with the loss of 3 million US dollars, the loss of First Securities is greater, right?

  For example, if the securities firm's investment bank license is revoked, the SEC will issue a sky-high fine? "

   "It doesn't make sense to lose both sides, Mr. Andrew, we should focus on a win-win situation for both sides."

  Andrew smiled and said: "Yes, but the premise is that you must compensate Mr. Xia Jingxing to a certain extent.

  If it is not for your business to make a mistake and mislead my client, he does not have to pay, even if it is one cent of capital gains tax. "

  Several senior executives of No.1 Securities will naturally not agree to compensation easily. Even if they are psychologically prepared for compensation, they cannot agree too readily, or they will feed the other party’s appetite.

  So they argued with Andrew and threatened each other.

  Xia Jingxing didn't interrupt, she just drank tea quietly, allowing Andrew to play freely.

  Dead fat Andrew, as an economic lawyer, is extremely proficient in his business. Various cases of brokerages being fined, he opened his mouth.

   also took the initiative to help First Securities calculate how much money might be fined and what the loss was.

  The two sides talked for several hours, and the five top executives of the first securities all felt tired, but Andrew was still alive in one-to-five, his mouth was like a machine gun, and he kept bursting.

   "Well, we are willing to compensate Mr. Xia Jingxing for 50,000 U.S. dollars. This is also our biggest concession.

  You should know that our company did not earn this amount from Mr. Xia. "

  Seeing Andrew is really difficult, the people of First Securities began to give in.

   is only 50,000 US dollars, obviously not satisfying Andrew's appetite, or it does not meet the expectations of the parties.

  He shook his head, "You have the main responsibility in this matter. You have to bear at least two-thirds of the 900,000 U.S. dollars tax, which is 600,000."

  One is 50,000 and the other is 600,000. The two sides have great differences.

  It was another rant, no one was willing to give in, and the negotiations were at a deadlock.

  ……

  ……

  The next day, the two sides conducted a second round of negotiations.

  Andrew offered a new condition, which made the executives of First Securities a little confused.

  They repeatedly confirmed: "Ten million U.S. dollars, three-year interest-free loan?"

  Andrew nodded, "Yes, if you agree to borrow money from Mr. Xia Jingxing, we can give up other compensation, and we will no longer pursue the fault of First Securities."

   "What about the collateral? Ten million dollars is not a small sum."

   Sitting aside, Xia Jingxing inserted a sentence: “I also have an Internet company. The current valuation is over 100 million yuan, and I can pledge 10% of the equity to you.”

  The senior executives of First Securities have obviously understood part of Xia Jingxing’s background, and shook his head again and again: "Sorry, we do not accept pledges for the equity of Facebook.

   has only obtained angel round investment, the growth is not sure, and the risk is too great.

  We are a securities company, not a venture capital institution.

  If it is a listed company's equity, we can accept the pledge without hesitation.

   or quasi-listed companies after the C round and D rounds are also good, business, revenue, profit, etc. are relatively stable.

  If the loan is overdue or bad debts, there is no worry that no buyer will take over the equity.

  While startups may go bankrupt one day, isn’t the equity just in your hands? It can't be realized either. "

  Xia Jingxing did not hesitate to say: "Facebook has already made millions of dollars in profit, and Google has also offered tens of millions of dollars to buy us. The equity is not as worthless as you think."

   "This will definitely not work, let's change to other terms!" First Securities executives resolutely refused.

  Andrew glanced at Xia Jingxing, his eyes playful.

  He persuaded the little brother yesterday after hearing Xia Jingxing's proposal of such a new condition.

  Don’t read Facebook, which is very popular with venture capital now, but if you want to use equity to find loans from various financial institutions, it’s still a loss.

  Google can get loans for quasi-listing because it has stable revenue and profits.

  How long has Facebook been in business? It simply fails to pass the risk control of major financial institutions.

  Moreover, this is not a loan in the name of a company, but a loan in the name of individual shareholders, which is more difficult.

  No, I was rejected as soon as I spoke. It was a waste of effort.

After being rejected, Xia Jingxing said without discouragement: "I borrowed this money for securities investment. After the loan is received, the account is still opened with your company. You can supervise the account and confirm that the loan is not used for other purposes. .

  In addition, I can also put one million to two million principals into this securities account. "

  "Isn't this a margin account? 5 times or 10 times leverage?" an executive of First Securities asked.

  "Not the same, this account is not allowed to close positions, nor is it set intra-day and overnight risk control values.

  If this happens: after I have invested one million or two million in principal losses, the ten million borrowings have also begun to suffer losses, and you cannot close my position.

  This is very different from a margin account. It is a three-year long-term loan. When it expires, I will return you 10 million principal on time. "

  Xia Jingxing is a person who has suffered a loss once, and is a little vigilant and cautious about leverage.

  It is interesting to have the senior executives of First Securities. Compared with the margin account, the borrowing proposed by Xia Jingxing is undoubtedly more flexible and can withstand a very large stock price rebound.

  They are wondering, is this confidence in the target stock or not?

  Actually, Xia Jingxing only knows the long-term trend of Amicco's stock price, and does not understand the stock price rebound in the middle, so he dare not increase leverage rashly.

  Otherwise, he would not give up the compensation of First Securities, and came up with a compromise method of borrowing 10 million U.S. dollars.

  Rather than asking for hundreds of thousands of dollars in compensation, the principal of 10 million dollars is provided for him to use for three years, which is more favored by him.

  The starting window for Amicco's stock is already very short, and he has no more time to compensate for the differences with First Securities.

  He can't afford it!

  In addition, the interest-free loan he proposed is just a test condition. First Securities can accept the best, but it cannot accept it. He can pay part of the interest and use the loan with compensation.

  In fact, he and First Securities are holding each other's handles and wanting to ask for a large amount of compensation, which is very unrealistic.

  True to court, no one can please, so I can only make the SEC cheaper and collect two fines, which is pretty good.

  He went from asking for cash compensation, and then issuing settlement terms for interest-free loans, and even paid loans.

  The purpose is to test the bottom line of First Securities, and at the same time lower the other party’s psychological threshold, so that the other party has a "earned" mentality to achieve the ultimate goal!

  The financial industry in the United States is very developed. Brokers like First Securities can borrow large amounts of low-cost funds from other financial institutions in the form of lending and issuance.

How low is   ? The annual interest rate does not exceed 2%.

  Then lend them these retail investors at an annual interest rate of 6% to increase leverage to earn the intermediate price difference.

  Handling fees and commissions gradually do not account for the majority of the profits of brokers. In the future, many brokers will even waive handling fees and commissions, mainly to earn the spread of lending on customer margin accounts.

  He asked First Securities to borrow 10 million U.S. dollars, which was interest-free for three years.

  Assuming that there is no risk in the loan, First Securities only needs to discount less than $600,000, or even lower.

  If he borrows for a fee, First Securities only needs to act as a channel and does not have to bear any loss.

  The main differences between the two sides are still entangled around the collateral, repayment ability, and so on.

  Xia Jingxing explained to several senior executives of First Securities for a while, but still could not persuade them.

He pretended to look impatient, and followed the steps to release a bit of sweetness: "Well, I don’t want to be interest-free. I borrow 10 million dollars and pay you 2% of the annual interest. After three years, the principal and interest will total 10.6 million dollars. It will be settled to you in one lump sum.

  In addition, the collateral is still Facebook’s equity. You can also supervise the securities account. You can also ask me if there are major problems. "

  The securities account supervision mentioned by Xia Jingxing actually sounds good.

  As long as he opens an account with First Securities, the other party will definitely be able to see the transaction records of his account in the background.

   Saying it is the same as not saying it.

  However, First Securities borrowed such a large sum of money to him, and he must be afraid of running away.

  If stocks are sold, deposits and withdrawals, there will definitely be someone calling for inquiries.

  But these are not things he should worry about, just show the conditions.

  Several top executives of First Securities glanced at each other, and they were all moved.

  The other party pays 2% of the annual interest. Their company is equivalent to no interest discount and no payment. At the same time, they have reached a settlement with Xia Jingxing, and there is no need to compensate the other party for tax losses.

   "We need to discuss it!"

  As for the collateral of "Facebook Equity", several top securities executives are still a little bit uncertain.

  If the collateral risk is not that high, they don’t need to be so hesitant.

  Xia Jingxing nodded, "Yes, but I must give me a definite answer within today."

  …………

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  (End of this chapter)