Chapter 639 Kaminarimon Bankruptcy (2)

   "Gentlemen, good evening, and now I declare a contingency!"

   Paulson walked into the conference room where the CEOs gathered with a deadpan face, and said to the executives in a room very calmly, "Now, those who are unwilling to help Raymond Brothers can be thankful."

   Since the deal is close, the CEOs are relaxed. They chatted cheerfully and joked unscrupulously, and the whole conference room was filled with a joyous atmosphere.

   Unfortunately, the moment Paulson entered the meeting room, the atmosphere came to an abrupt end. No one dared to play casual jokes in front of Paulson, even when the deal was close to closing.

   Soon they heard such a surprising sentence, and everyone's expressions changed. They didn't think that Paulson was announcing that the deal could not be reached, but that Paulson was after the calculation. Come to think of it, most of them had disagreed with the proposed acquisition of Raymond Brothers.

   "Henry, what happened?" Jamie Dimon stood up with a puzzled face, "We have reached an agreement, as long as we announce it before the market opens on Monday. Everything is resolved, isn't it?"

  All eyes are on Paulson, hoping that the other party can give a clear answer.

"We screwed up, this business failed!" Paulson explained with difficulty, with a bitter face, "The British government does not intend to approve this transaction. Moreover, Barclays Bank still needs a shareholder voting process, The results are unpredictable."

  Although Paulson's voice was not loud, the whole news exploded in the ears of the CEOs like a thunderbolt from the clear sky. It was so shocking that they panicked and lost their souls. The sudden change left most people at a loss as to what to do, they stood there in a daze, unable to react at all.

How could this be?

"What the **** is going on?" Jamie Dimon was surprisingly angry, not only because the duck flew from his mouth, but also because if Raymond Brothers went bankrupt, **** and its trading positions He is about to suffer a huge loss, which is so big that he swears in front of the Secretary of the Treasury of the United States, "We already have cash, cash!"

   Soon someone else reacted, and another banker followed Jamie Dimon's words and continued: "How is this possible? Aren't the British our most loyal allies?"

"No, the British are planning to take the opportunity to blackmail and rob!" Another banker thought he was smart and said, "This is their strategy, right? It's the Financial Services Bureau... No, it's Barclays' strategy. They don't Satisfied with our asking price, want to get more through such threats!"

  As soon as these words came out, they immediately resonated with most people. People's eyes are no longer looking at Paulson, but turned to Barclays' Bob Dimon. What surprised them was that at this moment, Bob Damon's face was ashen, sweat was profuse, and he looked like a catastrophe was imminent.

  This doesn't look like an opportunity to threaten, most people who saw Bob Damon's reaction thought so.

   "This is not our problem!" Even if Bob Dimon is daring, he does not dare to play tricks at this time, because it seems to offend the entire American consortium and even the top government. He said in denial with trembling lips, "This is definitely not our problem, and we have no intention of threatening at all. Gentlemen, I just found out about this, and I need...to verify it."

  Bob Dimon was angry, embarrassed, and very discouraged at the moment. At this time, he never expected to fall on the side of the British government, which not only made him lose face in front of his American counterparts, but also made the future of the whole deal uncertain. But it's pointless to think about it right now. He took out his mobile phone tremblingly and prepared to call McCarthy of the Financial Services Bureau.

"no need!"

With a cold face, Paulson stopped his "struggle" with a wave of his hand, "I have already talked to senior British officials including McCarthy and Darling on the phone, and the other party has clearly expressed this meaning. I believe this decision is made by the Prime Minister So no matter what connections and resources you have, it is impossible to change the decision of 10 Downing Street at this time."

   "Slap", Bob Dimon shook his hand, and the BlackBerry dropped to the thick carpet, making a muffled sound. His face became even more ugly, and his whole body trembled violently, as if he would fall to the ground at any moment.

  The person next to him saw that the situation was not good, and quickly helped him to sit down, and handed him another glass of water. It took quite a while before Bob Damon regained his breath, and a trace of blood finally returned to his face.

  Under such circumstances, it is impossible for everyone not to believe it. Even though everyone suspects that Bob Dimon is acting, they dare not disbelieve Paulson's words.

   "We were tricked by the British!"

Although there were quite a few British people present, Paulson still disregarded the feelings of the other party under the rage, and directly said what was in his heart, "Now we have to think about it. If Raymond Brothers really goes bankrupt, everyone in the market The possible shocks. Now that the Leimen brothers have gone bankrupt, there is no possibility of recovery!"

   Paulson has thoroughly characterized this matter. Raymond Brothers is destined to go bankrupt. Now it is time to consider the drastic impact on the market.

   "We're in big trouble!" As soon as Paulson's words came out, Jamie Dimon's face immediately sank, and he blurted out.

As the settlement banks of Merrill Lynch Securities and Lehman Brothers, the two investment banks have a huge amount of unsettled positions in the government. For the mortgage of this part of the position, the government once asked Leihman Brothers to take out 5 billion To 10 billion US dollars in collateral, but Raymond Brothers have been delaying. Now, once Leimen Brothers declares bankruptcy, this part of the position will basically be frozen, and it will not be possible to unwind until the liquidation of their assets is completed. It may take months or even years to go through the entire bankruptcy process.

  This also means that **** must prepare liquidity for this part of the position.

"Lehman Brothers also has a large amount of open positions in our channel!" Ken Lewis of Bank of America also said solemnly, "In terms of CDOs and CDSs, their account losses are huge. If the positions are forcibly closed, these The loss may even affect our financial statements for the third quarter."

   Immediately afterwards, the heads of several other organizations also stood up and complained about the affiliated transactions with Raymond Brothers. Some of these areas are commercial real estate, some are long-term notes, and some are short-term treasury bonds. In short, no matter what kind of investment products, without exception, they all have one characteristic, that is, huge positions.

   This is why Paulson, Geithner and others spared no effort to save Raymond Brothers.

  Because of the special status of investment banks in the financial ecological chain, they have long been an indispensable link. They package products and sell them to investors and institutions, they provide opinions and channels to funds and investors, and they are also investors in the market. They are everywhere, as long as they can make money.

  In this case, they can have contact with any party, and if one of the giants falls, it will inevitably affect other institutions. Especially in this kind of market downturn and turmoil, the spread of this panic is very likely to cause the confidence of the entire market to collapse, and then trigger a chain reaction.

Basically, everyone here has experienced the stock market crash in 1987. Even if they have not experienced it, most of them have also experienced the bursting of the technology stock bubble. There are lingering fears in people's hearts.

  The real situation is far more frightening than the stock market crash or technology stock bubble, because financial innovation has led to excessive proliferation of various derivatives. Although this crisis was caused by CDOs, in another related market, the CDS market, this kind of panic must never occur. Because the total value of this market has reached an astonishing $60 trillion, surpassing the global stock market of $40 trillion and four times the GDP of the United States. And if this market collapses, the consequences will be unimaginable.

  Lehman Brothers holds CDS worth about US$100 billion in this market.

  So it is necessary to cut off the chain reaction caused by the bankruptcy of Raymond Brothers, because no one can afford this responsibility. Not Geithner, not Paulson, not even the President of the United States.

   This is why before Paulson and Geithner asked each consortium to count the related transaction positions of Lehman Brothers, and now these data are finally available.

   "We need liquidity!"

After everyone complained, it was Jamie Dimon who took the lead to stand up and demanded, "If Raymond Brothers declares bankruptcy, basically their assets will be frozen. The lack of liquidity will seriously affect us. If we cannot If you inject liquidity, it will be a big trouble for everyone here, very big trouble!"

   "It's in our consideration!"

   Just then, Geithner walked in, holding a thick document in his hand. He first gestured to Paulson, and then began to distribute the documents in his hand, "We have anticipated such a situation, and the liquidity problem will be resolved soon."

   "How to solve it?" Jamie Dimon is still reluctant.

"Set up a stabilization fund, and various institutions can obtain liquidity from this fund!" Geithner glanced at Jamie Dimon lightly, with no sadness, joy or anger on his expression, "As for funds, the Fed will issue Part of it, everyone here will contribute a part. Didn’t we reach a fund agreement on the asset acquisition of Leimen Brothers before? Just use this part of the fund to join!”

Without waiting for others to object, Geithner went on to say: "It is estimated that the capital scale of the stabilization fund needs to be 100 billion U.S. dollars. All institutions here are eligible to apply for emergency liquidity assistance from it, and the maximum amount does not exceed the sum of your contributions. , or $35 billion."

"In this way, your liquidity problem will be solved." After looking around with a complex expression, Geithner distributed the documents in his hand to everyone, and said in a cold tone, "Those who did not participate in the rescue , are not eligible to apply for the relief plan of this stabilization fund.”

  As soon as Geithner finished speaking, there was a sudden gasp in the conference room. Originally, they were still thinking about the consequences of refusing to rescue the Leimen Brothers, but they never expected that the Federal Reserve and the Ministry of Finance would play such a trick behind the scenes. Fortunately, everyone here agreed to help Brother Leimen, otherwise they would not have their share now.

  The most amazing thing is that each company can apply for a share of 35 billion U.S. dollars, which is exactly the same as the amount they originally wanted to rescue Raymond Brothers. This figure can reduce to a certain extent the accusations of “market intervention” by the Federal Reserve and the Ministry of Finance.

   Some people even suspect that these documents were drawn up long ago, but the figure of 35 billion US dollars was added at the end.

  By this time, no one raised objections, because they were all intimidated by the deep scheming of Paulson and Geithner: the other party had already made preparations for the possible bankruptcy of Raymond Brothers.

  If they are disobedient, will they be the next ones who may go bankrupt? This is a question that haunts the minds of all CEOs. Now it seems that the law of "too big to fail" has failed!

   PS: It is rumored that Liu Qiang (Xiaoyao Liu Qiang), the author of "Futures Master Feng Yunlu", the fund manager, committed suicide by jumping off the building. High long index futures and allocating funds to buy stocks made him bankrupt. Be in awe of the market! ...By the way, in the next two or three days, there may be fewer days for relatives at home. cpower casts a monthly ticket! Thank you book friend Xiao Qi for the reward of the miracle of civilization!

  

  

  (end of this chapter)