Happy Tycoon

To put it bluntly, Lehman Brothers was really unlucky.

Lehman Brothers was exposed to the crisis last year, in September 2007.

On September 11, seven years ago, two planes hit the World Trade Center in New York, Lehman's headquarters located in the World Trade Center, suffered heavy losses, but also narrowly escaped death.

On the same day seven years later, Lehman's stock price fell below 4 yuan per yuan, and it was once again a moment of life and death.

At the end of 2007, the total asset value of Lehman was about 700 billion US dollars, and the net value of the company after deducting various liabilities was about 20 billion US dollars, and the leverage ratio was 35 times. And this year, in the first half of 2008, Lehman's mortgage asset problems were gradually exposed, and the loss may reach tens of billions of dollars. up to nearly 70 times.

At this time, Lehman was already in danger, and Lehman would collapse if there was a slight disturbance.

At this time, the Korea Development Bank in East Asia, that is, KDB, was willing to inject capital into Lehman. As soon as the news came out, Lehman's stock price immediately stabilized.

The main reason why KDB is willing to recruit Lehman Brothers at this time is because the boss of KDB used to be the head of Lehman's Korean branch, and he has a lot of affection for his old club.

At that time, KDB was willing to offer $26 a share, while Lehman insisted on $28. The head of Lehman Brothers, Dick Fuld, really didn't want to sell at a low price. After all, Lehman was quite profitable, with a profit of US$4.2 billion in 2007. But that's what's so scary about mobility—what's the use of showing off your eight-pack when the air is dry.

As a result, this stalled deal finally dragged out of the question. On September 7, 2008, the U.S. government suddenly announced the takeover of the two companies, inserting $200 billion in preferred stock investment into their capital structure.

The next day, South Korea's financial regulatory agency expressed its opinion in an oriental euphemistic way: KDB should treat the issue of capital injection into Lehman with extreme caution. Immediately, KDB issued a statement, terminating negotiations with Lehman. As a result, Lehman's stock price fell sharply. What's more fatal, no one borrowed from Lehman, and the liquidity was about to be cut off.

Looking around, Goldman Sachs and Citigroup can't protect themselves, and **** has just eaten Bear Stearns, and they will not be interested in Lehman, which is in a similar situation.

There are only two blind dates left, the relatively simple and honest Bank of America, which was born in a commercial bank, and Barclays Bank from Great Britain.

That weekend in mid-September 2008, an ordinary holiday for many on this planet, was Lehman's life and death.

Prior to this, Bank of America and Merrill Lynch had been eyeing each other for a long time. Merrill Lynch looked at the mortgage assets on its books and knew clearly that if Bank of America bought Lehman, then the next short target of this financial vulture would be itself. Bank of America also has an unforgettable old relationship. It sat at the negotiating table and talked with Lehman, but always aimed at Merrill Lynch.

Can this matter be delayed? Without further ado, Merrill leaned closer to his tender body decisively, and took the room card that the Bank of America handed over under the table.

Hearing the good things about Merrill Lynch and Bank of America, Paulson, the finance minister, was overjoyed and ordered both parties not to hesitate to complete the merger.

That weekend Paulson called all the executives of Wall Street giants to the Federal Reserve building to do two things. First, follow the example of the LTCM crisis in 1998 and ask Wall Street to set up a rescue team to buy Lehman's problematic assets, and then the acquisition The second is to finalize the deal to acquire Lehman.

Does Goldman Sachs dare to dismantle the old leadership? Certainly not. So things went surprisingly smoothly for the rescue team. Seeing that Lehman was about to be rescued, the M\u0026A case was stuck on a seemingly insignificant subsection: Barclays was a British bank. It turns out that according to British regulatory laws and regulations, mergers and acquisitions need to be voted by the general meeting of shareholders to count.

This is no different from the US regulations, but the following one is very important: Before that, Barclays could not guarantee the Lehman transaction, because it would constitute a substantial merger. It will take a few days at the earliest for shareholders to vote. During this period, Lehman has to be open for business. If investors continue to withdraw their funds, Lehman may go bankrupt because the transaction cannot be settled before the merger is passed.

Once, when the old Paulson persuaded Dick Fuld, the latter replied I have been in charge of Lehman longer than you have been in charge of Goldman Sachs, which means very clearly, you are a fool!

So some people said afterwards that it was because of Fuld's consistent arrogance that completely angered the old Paulson. Some people also said that the old Paulson just wanted to make an example to the greedy Wall Street. In short, Paulson Sr. made it clear early on that the government should never pay for Lehman.

Heh heh, I just want to treat you as the chicken that scares the monkey, what can you do to me? You fucking dare to say that about Lao Zhi, if Lao Zhi doesn't kill you, you're good at it!

However, the old Paulson still has to do face-saving work. He asked the British regulators to waive the relevant regulations, but the British guy shook his head like a rattle: We have enough troubles in our own financial system. Open the back door to save an American investment bank ? no way!

Now the old Paulson has something to say, read it, I am not fussy, I am going to beg the British guy for you Lehman

However, when Barclays persuaded the U.S. government to change its mind, the old Paulson's attitude was very firm at this time-our country's financial system cannot be easily destroyed! The implication is very clear, no way!

As a result, the fate of Lehman Brothers as a chicken could no longer be changed, and the 158-year-old Lehman Brothers finally came to the end of their lives.

The bankruptcy of Lehman Brothers finally turned the subprime mortgage crisis into a global financial crisis!

The cruelty in the financial market is most vividly manifested in the subprime mortgage crisis.

However, all of this has nothing to do with the Dragon Fund. There is John Paulson in the front, and there are large investment banks such as Bear Stearns, Merrill Lynch, and Lehman Brothers behind. matter.

Not to mention, by January of next year, Ao Heitan will take office, and Paulson's journey as finance minister will be completely over. He also checked a P!

Yang Jing knows these things clearly, but he can't say it now.

Fortunately, the Evil Dragon Fund performed well enough in the subprime mortgage crisis. It was enough to make enough profits under the condition of ensuring concealment.

As for John Paulson, although he also made a lot of money during the subprime mortgage crisis, with a total of 20 billion U.S. dollars, and was called the empty god by later generations, the little money earned by the Paulson Fund , and really didn't let the dragon fund take it seriously.

A mere 20 billion US dollars, not even a fraction of the profit of the Dragon Fund.

Okay, let's not discuss these anymore. Yang Jing clapped his hands, raised his glass again and said, The Olympic Games will be held in Yanjing, China next month, guys, who is interested in going with me? Want to see that grand event?

The three of Henry and the others also raised their wine glasses. After touching Yang Jing and taking a sip, Henry smiled and said, Boss, do you want to relax?

Yang Jing shrugged his shoulders noncommittally, I have been busy for so many years, I should give myself time to relax. People, you can't always be tensed like a bowstring. It is good for your body to relax properly. By the way , Mike has agreed to my invitation, he will fly directly to Yanjing next month, and we will meet there. Guys, who of you would like to go to the Olympics with me?

Henry looked at both sides, hesitated for a moment, then raised his hand and said, Count me in. I think these little guys are ready to be teachers, so I'm going to give myself a vacation.

Cesar grinned and said, How could such a good thing leave me behind? I'll go too.

Yang Jing looked at David, and David shook his head and said, Boss, I think I'd better keep an eye on it. There needs to be someone who sits here. And I'm not interested in the Olympics, you just go and see it. gone.

Yang Jing looked at the three of them, finally smiled and said, Well, let's meet in Yanjing next month!