America's Road to Fame

Chapter 135 Walking with Jackals

By the time William Chen returned to New York, it was already November 11th.

The main reason is that after leaving China, he did not return to New York immediately, but went to Japan by the way.After all, there is Nozomi Sasaki there, so one cannot favor one over the other, since she has already come here, no matter what, she has to spare two days to accompany her.

Now William Chen discovered that in his future bank, there are two more objects that can be bound. Chen Zihan, who did not appear last time, has become an object that can be bound without knowing it. The other one is Zhang Yuqi .

As for the international chapter and Zhang Jingchu who are friends with him, they did not appear in it.

Regarding these, William Chen didn't have too many thoughts, but this change of Chen Zihan seemed to be of reference value for him to study many mechanisms of future banks.

In addition, the only function of these people appearing in the list that can be bound is to be able to test the other party's loyalty to their feelings.

After returning to New York, Chen William first returned to the company and had a face-to-face understanding with John Paulson about the economic situation during this period. To sum it up in one sentence, the situation is very good.

Whether it is the 3A-level subprime mortgage bond index or the 3B-level subprime mortgage bond index, they are all in a steady decline. Now they have fallen from 100 to around 70. William Chen feels that it is far from the straight line. Time is running out.After all, after two years of delay, the scale of the crisis will be greater this time, and the damage will be more severe.

"One more thing is that those big investment banks have finally realized the risks in the subprime mortgage CDO bond and CDS bond market. Many companies have contacted us, hoping to reach an agreement with us to close their short positions in CDO bonds early. There is also the hope of repurchasing those CDS bonds that we bought before."

"Are you realizing it's not good now? What companies are there?"

"Many, Goldman Sachs, Morgan Stanley, Merrill Lynch, Deutsche Bank, Bear Stearns... Anyway, that's all I can remember."

"It's still too early, ignore them, and besides, they are not the counterparties to our shorting of CDO bonds, so why are they in a hurry?"

John Paulson said with a smile: "Although the opponents of the CDO bonds we shorted are their customers, not their companies, but have you forgotten? In order to get rid of the CDO bonds in their hands, those institutions But even coaxing and cheating, relying on the trust of those customers in them, the burden was thrown out."

"At that time, it was to save their lives. They had no choice. But now that they have calmed down, they need to think about the future. If those CDO bonds become waste paper, these institutions may face large-scale class action lawsuits. They scammed customers."

William Chen shrugged when he heard what John Paulson said, and said with a smile: "What does that have to do with us, they did it themselves, didn't they?"

"Indeed, I'm afraid those CEOs are having a headache."

"They shouldn't have such a headache. Isn't all this caused by their greed?"

"However, I guess that some of them are obviously more anxious, such as Merrill Lynch and Bear Stearns. I'm afraid it may not be ruled out that they used their own funds to bet against us."

John Paulson's words reminded Chen William. He thought for a while and ordered: "Pay attention to their movements, and if the situation is not good, close their short positions first. I'm afraid that the loss will be too large and it will lead to bankruptcy." .”

"These two are one of the top five investment banks, so they shouldn't go bankrupt just for this little money."

John Paulson said in disbelief.

"Who knows if they have any other tricks?"

Although William Chen knew that in the subprime mortgage crisis in his previous life, only Lehman Brothers went bankrupt among the five major investment banks, but this time it was even more serious. Who can guarantee that the other banks will be able to escape unscathed? Anyway, it is always better to be careful.

Thinking of this, William Chen asked: "How many short CDO orders do we have at Goldman Sachs?"

John Paulson thought for a while, and said: "The total assets involved in shorting CDOs at Goldman Sachs are about US$10 billion, plus the target amount of CDS, the total is more than US$20 billion."

"That is to say, in the end, Goldman Sachs' actual loss here should be around 10 billion US dollars, right?"

"Yes, it's their clients who are damaged by CDO short orders. If they don't use their own funds to secretly trade with us, it's just the guaranteed compensation of CDS, which is more than one billion U.S. dollars."

"Oh, that's not much, for Goldman Sachs. Well, if you have time, make an appointment with the CEO of Goldman Sachs, and I'll talk to him about it."

It would be wrong to say that all the five major investment banks suffered heavy losses during the subprime mortgage crisis.After all, Goldman Sachs, the most cunning among them, was the first to switch camps when the situation was not good. Therefore, at the time of the final statistics, Goldman Sachs not only finally evened out its losses, but also made a profit of more than 40 billion US dollars in the subprime mortgage crisis because of timely short selling .

Their CEO, Lloyd Blankfein, received a bonus worth more than $1 million, making him one of the most rewarding corporate executives in Wall Street history.

In John Paulson’s short-selling layout this time, in order to cash out the profits, he carefully selected different short-selling quotas for various institutions. Among their opponents, they included Goldman Sachs, Morgan Stanley, Merrill Lynch, Deutsche Banks, Bear Stearns, American International Group, UBS, Lehman Brothers... This long list includes almost all capital tycoons currently involved in the field of subprime mortgage bonds.

On average, each institution is only paying a maximum of 10 billion to 30 billion U.S. dollars, which is completely within their affordability, so in the end, even if individual institutions unexpectedly go bankrupt, most of their profits can be guaranteed was successfully paid.

Among them, if you want to find an ally, then Goldman Sachs, which has suffered the least damage in this crisis, is the best partner.

This is also the reason why Chen Weilian wanted to talk to the other party.

Now it can be said that William Chen is facing a group of wolves on Wall Street, and the way to deal with them is either you are strong enough to become a lion so that the wolves dare not fight against them; or you give them a little fat and let them for your use.

Chen Weilian is strengthening his strength, and now is the time to take out his fat and walk with the wolves.

……

"Happy birthday, Uncle Tom."

William Chen had dinner with Tom at noon, because today was an important day for him—Uncle Tom's birthday.

Since William Chen's previous parents passed away, William Chen would have a meal with him every year on Tom's birthday. close ones.

On Tom's birthday this year, William Chen gave him two sets of year-round tickets for the best seats in Madison Square Garden, the home arena of the New York Knicks.

He knew that Tom was a die-hard fan of the New York Knicks, and he would go to the home court to watch the game whenever he was free, so he bought the package of the two best seats at a high price, which added up to more than 100 million US dollars.

Of course, Madison Square Garden also has VIP boxes, the annual price ranges from hundreds of thousands to 150 million US dollars, where you can drink wine and eat delicious food to watch the game, but William Chen knows that Uncle Tom prefers to be close The stadium is watching the ball, so these two seats are located behind the home players, and the viewing angle is excellent.

"It's too precious, William."

It can be seen that Uncle Tom was very happy to receive this gift. William Chen said to him:
"I heard that you started dating recently, Uncle Tom. I'm very happy to see this scene, so I specially prepared two seats for you. I hope she can accompany you to watch the game in the future."

"We are just trying to communicate, and we don't know the final result yet."

Tom shook his head and said with a smile.

However, William Chen can tell from his expression that he is still in a very good state and has a sense of happiness that he has never had before.

"Anyway, this is a good start, isn't it? When can you introduce us to each other? I believe it must be a very good woman who can capture my Uncle Tom's heart."

"It's still too early, William. If the relationship is stable, I will definitely let you know."

Seeing Uncle Tom's rare shy expression, William Chen knew enough was enough, and believed that if the two could get together, he would see each other sooner or later.

Now that he can see that Uncle Tom, who is closest to him, can find his own happiness, William Chen also feels very gratified.

(End of this chapter)