American Fortune Life

Versailles Palace, Beverly Hills.

The classically full-featured conference room was full, and Andy sat in the seat of the main seat, glanced down and glanced over the details of the Indy Mike Federal Bank that the Federal Reserve Insurance Corporation had given to the think tank.

The number of think tanks coming from New York this time has reached 50. The main thing is that the size of the Indy Mike Federal Bank branch has reached 33, even if 3800 employees have been laid off before the takeover. This is already India. Demack Bank is half the size. He needs enough people to complete the acquisition in a short time.

After Indy Mike Bank hit a high of $ 50.11 per share on May 8, 2006, its stock price fell 87% in 2007, and has plummeted again by 95% this year. On the last trading day before the failure, its closing price was $ 0.28.

The US federal government is expected to lose up to $ 8 billion from IndyMike Bank, which makes FDI eager to find a "takeover man" to take over the bank. Due to the wave of bank failures, time is very urgent.

Indy Mack's main assets are $ 23.5 billion in commercial loans, mortgages and subprime loans. Whoever takes over this bank will face huge risks.

"I have persuaded fdi to sell Indy Mack Bank for approximately $ 1.5 billion. The sale agreement includes Indy Mack branches, deposits and assets.

fdi also agreed to sign a loss-sharing agreement ... "

Hearing Al's somewhat bland tone, Andy's hand to look at the data could not help but stunned, and looked at Al in a stunned state, and said uncertainly: "Loss sharing agreement ?!"

Alvitre smiled calmly and confidently: "In fact, this was also a temporary thought when I negotiated with fdi. This group of guys didn't want to be idle during the time of taking over Indy Mike Bank, not only sold a large number of subordinates. Housing loans to reduce their deficits, and also want to provide Fannie Mae, Freddie Mac with a large number of similar housing loans, and the price of securitized mortgage loans issued by the latter has been plummeting, and I warn them that if they do, we The acquisition will be rejected.

Based on the detailed information provided by them, we evaluated Indy Mack's total assets at $ 32 billion and actual assets (loans minus deposits) at $ 13.9 billion.

Our advantage is cash payment. I told them that if we want us to pay more cash, then we will not accept some problematic assets.

In the end, FDI agreed to hold some more serious assets, and agreed to sign a risk sharing agreement, under which FDI will bear 95% of the losses once the total loss of Indymac Bank's loan portfolio exceeds 30%. "

With Andy's eyes brightened, he couldn't help laughing and said, "In other words, as long as I spend 1.5 billion US dollars, I can complete the acquisition of 33 branches, deposits and assets of Indy Mike Bank!"

"It will also require a capital injection of around $ 1.3 billion to pay in advance the risk of loss of the 5% loan portfolio we bear!"

"Their guts are too fat! Don't they worry that we will shake off the burden of those high-risk loans directly?" Andy couldn't help sighing the guts of these guys from fdi.

It is important to know that in accordance with normal procedures, even if the borrower violates the loan conditions, banks usually try their best to avoid losses. Such as repossession of real estate, cars and other collateral auctions, and the loss sharing agreement means that future losses will be borne by the government.

"Oh, it ’s not that they are brave, but there is no way. They have paid 1.3 billion deposit insurance compensation in the past two weeks. At present, there is no certain price that can estimate the value of those loan portfolios. The financial market has been shut down. What do you think? They do n’t want to buy, and fdi also has to sign an agreement on risk sharing, but this will not change the fact that we also have to bear significant risks. "

"Hehe, it's okay, isn't it 1.3 billion ... Hehe, it's really interesting, it's 1.3 billion, anyway, it's not my money, it's all the Fed, and I lose it, so good, haha, good I used 1.5 billion to buy Indy Mike Bank with 33 branches and 9.6 billion deposits, and I have made a lot of money, so let them pay for it. "

Andy patted the table and laughed. The others in the entire conference room drew their mouths unnaturally. Nima, the boss ’s festival is really speechless, is there no sense of responsibility? ? This was decided from the beginning to get rid of fdi!

Well, it seems that this pit fdi has to jump without jumping.

"Oh, I think so too!" Arvitelle's face showed a harmless smile, and then handed Andy a document saying, "This is my strategic layout for taking over Indy Mike Bank. It is a three-step process. "

Andy's mood is simply unpleasant now, the smile on his face is getting brighter, and his big white teeth can't be hidden at all. He takes the documents handed over by Al and starts to look up.

"In fact, in order to achieve the goal of rapid turnover, we only need to quickly deal with Indy Mike Bank's non-performing loans and other assets. Anyway, the loss sharing agreement signed by fdi will make our job much easier.

In fact, we have already started the first two steps, such as completing the acquisition as soon as possible in the first step, and establishing the asset base of the bank by taking over other failed banks, such as the Bank of Miami Valley we have taken over, Missouri Douglas National Bank, Hume Bank, Missouri. In the future, we can continue to acquire closed small banks to expand branches and lay a solid foundation for the third step to establish market share.

The end is to repackage these asset collections into a new institution, a new bank! The new bank's business returned to a single model, avoiding the non-traditional mortgage loan business that caused Indy Mack Bankruptcy to become the main provider of quality mortgage loans and loans of equal priority.

I didn't write in the last step. Whether you want to turn it into a private bank or re-list the boss, this will strengthen your capital ability and make it a stable deposit source! "

Andy looked at the plan, sighed, closed it and pressed his right hand on the plan. He looked at his think tank chief consultant with a very satisfied thumbs up in his eyes and said, "If it weren't for the think tank, you ca n’t do without you. I really want you to be the eo of the new bank. "

"Boss, to be honest, I am not in a position to take charge of the new bank in dealing with future non-performing loans and other assets. What we need is a master who can sell the devastated economy!"

After hearing Al's words, Andy couldn't help but change his face slightly, and his expression became dignified, while the other think tank members also looked diligently to their own think tank boss, a little shocked, wondering why his boss proposed this kind of candidate Choice direction.

"Yes, we need someone who can brazenly block the road to dig out the profits in the risk-sharing agreement, encourage foreclosure, and trigger the loss-sharing agreement ..."

Al seemed to be talking about irrelevant matters. The smile on his face had not disappeared. Even everyone including Andy had been transformed by his coldness.

To be honest, Andy never thought of using his own bank to trigger a loss-sharing agreement, because foreclosure would mean driving people out of their homes, and the bank would get real estate, which would make their new bank Becoming infamous, and perhaps the future occupation of Wall Street, his Andy Smith will also be one of the main targets of protest.

Watching others make homeless people, Andy may not have felt much, but it was made by his bank himself. To be honest, he really hesitated.

Aar's deep eyes flashed with glory, seeing the young big boss who has been touching his chin, his face dignified and looking down, it is very clear that the heart of the big boss is not cold enough, the interests are supreme is what a successful big capitalist needs to implement Philosophy of life, inexplicable softness and compassion will only miss opportunities, pupils shrunk slightly, Al Dan said, "As long as the bank realizes 50% of the foreclosure, fdi expects The total loss is $ 10 billion, and we can put it in your pocket if we want. "