Rebirth of Hong Kong's tycoons, shorting Eagle Sauce

The two managers of Citibank saw this and simply played the tactic of procrastination.

They planned to see how their peers would deal with it.

Fuld listened to his subordinates' reports with wide eyes.

Because of the acquisition of Xiao Ri Zi's mortgage securities products, Lehman Brothers' annual revenue reached a record level of nearly 60 billion US dollars, and its earnings exceeded 4 billion US dollars.

The stock price also reached 165.73 US dollars per share, which means that Lehman Brothers' market value has exceeded 80 billion US dollars.

But less than three months later, Lehman Brothers' earnings showed a huge deficit.

"What's going on? Wasn't it fine in the past few months?

Even if the domestic default incident broke out, why didn't the foreign earnings meet expectations?"

Fuld almost roared and questioned a large number of financial elites under his command.

After a long time, someone raised his hand and said:

"Boss, after our investigation, the real estate bubble in Sakurajima is more serious. The mortgage securities they sold us contain a lot of junk subprime loans!"

Fuld was stunned. He remembered that these products had high returns.

He had finally managed to snatch it back from the Xiaorizi consortium.

"Didn't you check that there were no problems at the time?"

According to their past judgment criteria, there were of course no problems, otherwise they would not have acquired so many mortgage securities.

But with the outbreak of defaults, many financial institutions suffered losses.

They realized that the financial products packaged by Xiaorizi contained a huge bomb.

Fuld saw that everyone was silent, and he was a little helpless.

However, Fuld and his people still did not realize that this would cause Lehman Brothers to go bankrupt.

They just thought that everyone was losing money and they would double their money in the future.

The first to fall was New Century Financial Corporation, which was acquired by Gilton.

As the second largest subprime mortgage company, facing a debt collection of up to 17.4 billion US dollars from Wall Street, this company controlled by Universal Real Estate announced that it had applied for bankruptcy protection!

Then the United States ushered in a huge wave of bankruptcies.

Mortgage institutions began to go bankrupt one after another.

The Federal Reserve and the United States' financial department were a little overwhelmed.

Just when they were thinking about whether to use a lot of money to rescue the market, Universal Real Estate received bad news - their cash flow was completely exhausted!

Universal Real Estate has been playing the game of borrowing from Peter to pay Paul.

There was no problem with all this during the real estate boom, but now mortgage companies have closed down one after another, or reduced lending, house prices have plummeted, and there are only sellers in the market, no buyers.

Universal Real Estate naturally has a problem of capital shortage.

The most fatal blow to Universal Real Estate was the collapse of New Century Financial Company.

This company is more like a cash machine for Universal Real Estate. Now that the money printing machine has stopped, it naturally caused a series of reactions.

The shareholders of Universal Real Estate were shocked to find that debt is a bottomless pit. In the past, any one of them could keep it alive by taking out some money.

But now the real estate has shrunk significantly, and most of what Universal manages are long-term fixed assets, which are difficult to cash in under such circumstances.

So since 2007, the share price of Universal Real Estate has begun to decline sharply, with a drop of up to 70% in five months!

Judging from the market value and debt, the former world's No. 1 real estate company is now insolvent!

Its debt is equivalent to 1/6 of the United States' GDP in 2006!

Wall Street and the White House have tried their best to block news about Universal Real Estate's debt, and even banned discussions on the Internet.

People are still kept in the dark about this matter.

The United States's financial director contacted several major shareholders to hold a meeting.

Fuld no longer has the arrogant look he once had.

The president of Bear Stearns looked worried.

The president of Merrill Lynch didn't say a word after entering the door, as if he had lost his soul.

The financial director saw their expressions.

"You should all know that Universal Real Estate owes 2 trillion US dollars."

When everyone heard this number, they were still shocked.

Even if all the capital of their five major investment banks was packaged, it would not be able to fill the hole of Universal.

What's more, their own situation is not much better, and they may fall into a situation of cash flow exhaustion at any time.

"Our official opinion is that everyone should take out some money to help Universal Real Estate overcome the current difficulties. When the housing market picks up, the crisis of Universal will naturally go away."

As he said this, he looked into the eyes of several people.

Fuld glared back:

"Whoever wants to save can save it. Anyway, there is no money, and life is at stake."

The other companies took a look and expressed their attitudes:

"How to save such a big hole? The government should set an example."The five major investment banks are also testing the government's attitude. If they encounter such a situation, will the country take action?

The Financial Secretary frowned and shouted at the top of his voice:

"You are all major shareholders of Universal Real Estate. If Universal falls, you will not be far from bankruptcy!"

The five major investment banks are so good at leveraging, and a big reason for this is the asset valuation brought by their investment in Universal.

If Universal explodes, the stocks of the five major investment banks will collapse!