America's Road to Wealth

Chapter 196 The New King of Wall Street Is Birth

Also January 1th.

The most powerful black man on Wall Street is facing blame and accountability from the company's board of directors and CEO David Komansky.

Smith Building, in Abel's office on the fourth floor.

Abel was standing in front of the floor-to-ceiling windows with his arms folded, staring at the tall buildings across Manhattan.

Those buildings that symbolize finance still stand tall.

Only Abel knows how many people there will be dying of pain at this moment.

For Smith Capital, the amount involved in this transaction is too large.

So much so that Abel basically spent the past two nights in the company's office because he was worried about the counterattack of the short sellers.

He enjoys the tranquility here.

But he knew that across the East River in New York, there were already a lot of people tearing their hearts out.

He also knew that if he waited a few more hours, hundreds of speculators would be cornered.

Capital will not give even the slightest bit of mercy and sympathy to the losers.

And he is a random capital, and the butterfly effect has aggravated the bubble.

In parallel time and space.

In January 2001, there was such a black swan event in the foreign exchange market.

But not as intense as this time.

It was him, the wolf of Wall Street who shorted in the early stage and idling in the mid-term.

Making this situation so intense has caused more people in this time and space to misjudge.

Let more people go bankrupt, or end their lives.

Just now, there have been media reports in New York.

Someone jumped off a building on Wall Street, and jumped twice.

beep~ beep~ beep

There was a knock on the office door.

"Come in." Abel said, looking at Manhattan across the way.

Across the East River in New York, he seemed to see blood on the ground of Wall Street at this time.

The door was pushed open.

For a week, I only slept three or four hours a day.

Rely on coffee, and even want to rely on drugs to refresh me in the middle.

David Mellon, who was stopped by Abel.

The young master of the Mellon family, with his hair that hasn't been washed for a few days, is in a mess.

But he walked in with a smile on his face.

Abel turned around and looked at David Mellon with a smile.

The latter came directly to him without saying a word.

In a very exaggerated way, he jumped down, kneeling down, raising his hands high, and shouting heart-piercingly:

"God! God! God! My supremacy god!!!"

It looks like crazy.

Abel shook his head with a smile. Abel knew that David was caught by the market these days.

And the gains from these two days, the excitement is almost a bit insane.

Abel walked over, slapped him hard on the shoulder twice, and kicked David hard on the ass a few times.

Then say, "Don't be like XJ! Come on, go out and see how my wolf cubs are doing."

"Hey hey hey~"

David Mellon stood up with a silly smile, and followed Abel out.

Chairman and Managing Director of Smith Capital.

Soon came to the trading hall on the third floor.

In the trading hall, they also fought hard for several days and nights.

Traders at Smith Capital who also slept very little.

After they saw Abel appear, the first few.

I don't know if David Mellon taught it just now.

It's actually like David Mellon just now.

One or two, shouting the same words as XJT in their mouths.

Kneeling on the ground and raising his hands to Abel, he looked like he was madly worshiping.

The actions of these guys in front soon led to the imitation of hundreds of Smith Capital employees.

Ten seconds later, in the spacious trading hall on the third floor.

More than 100 traders from Smith Capital.

They all raised their hands high, chanted XJT-like content in their mouths, and worshiped Abel.

To be honest, Abel didn't like this crazy look.

But he knew why they were the way they were.

Mainly because of the state of the safe house in Smith Building this time.

Its investment experience is really too ups and downs.

At first Smith Capital chose to go short.

At that time, the overall market of USD/JPY was slow.

To be short at that time was to go against the general trend of the market.

This kind of behavior made Smith Capital a few days.

At the most, the floating loss almost exceeded [-] million US dollars.

Small bushes then moved into the White House, and two days later the Federal Reserve announced an emergency rate cut.

These two incidents caused many Wall Street investment banks to make wrong judgments.

Coupled with the depreciation of the dollar due to interest rate cuts.

As a result, the USD/JPY bull market, which was originally very good, began to go bearish.

For more than a day, Abel's floating loss turned into floating profit.

According to the normal script.

Abel should wait to earn a certain floating profit, close the position and leave in a few days.

But he didn't.

Instead, he wants to short USD/JPY when the bears enter the market in large numbers.

Played a lot of idling hard.

Smith Capital took advantage of the large number of short sellers entering the market.

In a very short period of time, more than 50 positions were successfully opened.

The follow-up result was that he lost more than 20 billion US dollars within two days.

So that the margin on the account is very dangerous.

Abel had to sell a lot of stocks in the US stock market to raise funds to increase margins and to hedge risks.

The critical moment appeared at Tokyo time in Asia, at 07:30 on January [-]th.

With the pioneering quantitative easing policy that the Neon Central Bank has come up with.

And it happens that the next day is the weekend, and the futures market is closed.

And within two days of the weekend.

Several major countries in the world have successively announced interest rate cuts in their own currencies to hedge against dollar interest rate cuts.

A large number of black swans that are good for the dollar have appeared, plus the super black swan of quantitative easing that is bad for the yen.

In the end, the USD/JPY market was out of control, and it is today's situation.

The ups and downs here are certainly important.

But the most important thing is actually in this gamble between Smith Capital and Wall Street.

Smith Capital has obtained a single exaggerated profit that is very rare in the history of Wall Street.

50 lots in the first place, followed by 11 lots to cover positions one after another. This time, the total amount of foreign exchange held by Smith Capital is 61 lots, and the average position of opening a position is around 105.100.

According to the current market, 119.650 is calculated.

Smith Capital's profit was 1455 points.

A profit of ten dollars per point, that is, a standard lot, will have a profit of $14550.

The total profit is a profit of around 61 x 1455088.75 billion.

And Smith Capital, in this investment.

The total invested capital, in addition to the initial 30 billion US dollars.

Subsequent additional funds of about 30 billion US dollars.

The principal amount is 60 billion US dollars.

So far, $88.75 billion has been earned.

60 billion US dollars, earning almost 89 billion US dollars in less than ten days!
With this achievement, the trader and David Mellon, who had witnessed it, naturally fell into this situation.

Abel also let his subordinates vent their emotions accumulated during this period.

After they calmed down, he took the microphone handed over by David Mellon.

"Brace yourself, my wolf cubs."

He was talking about himself, a bit disgusted by the words of the second grader.

"The hunt isn't over yet. USD/JPY is way beyond that. Watch, we'll bleed Wall Street!"

David Mellon raised his hands in coordination and shouted loudly: "Rivers of blood, rivers of blood, rivers of blood!!"

The employees of Smith Capital below also raised their hands frantically.

For a time, "rivers of blood" flooded the entire Smith Building.

People who don't know pass by may think that something bad happened inside.
After inspiring the spirits of the traders.

Another David, David Jones, walks over with Abel's business phone.

"Philip Purcell," David Jones mouthed to his boss.

Abel nodded and took the phone that David handed over.

"Hey, Philip, good afternoon." Abel said with a smile across the phone.

Abel could clearly hear Philip Purcell on the opposite side smiled wryly.

"Mr. Smith. You may be fine. But honestly, we're not that good."

"Oh? Why? The weather in New York is fine today. Look, the sun is rising outside!"

"This kind of weather, I think it's suitable to go out for a walk, what do you think?"

Abel asked knowingly, and said so on purpose.

"Okay." Philip Purcell's voice calmed down:
"Mr. Smith, let me just say it. You won this time, and you won very thoroughly."

"Morgan Stanley throws in the towel."

"Morgan Stanley has about [-] short positions left. Make an offer, Mr. Smith. We want to close."

It has been said before.

Whether it is long or short, when the quantity reaches a certain level.

If there is no opposing camp, accept that your position contract is over.

That is to say, if no one takes the order, it will be regarded as a liquidation, and the loss will continue.

If it is not bankrupt, the debt owed by such losses must be repaid.

If you don't pay back the money, the middlemen and guarantors will accompany your counterparty to pursue the debt collection.
Those small and medium-sized investment banks and investment companies are relatively easy to talk about.

I really couldn't afford to lose money, so I went bankrupt.
But giants like Merrill Lynch and Morgan Stanley certainly cannot go bankrupt so easily.

You can't really be in debt.

In other words, if you don't want to continue to lose money.

These investment banks have a large number of empty orders in their hands and must choose to close their positions immediately.

But in the market, it is Abel who holds the most long orders.

These big investment banks with a lot of orders can eat a lot of their short positions, and only Abel is the only one.

That's why Philip Purcell made the call.

On the Smith Building side, Abel, who walked to the French windows on the third floor, said with a smile on his mobile phone:
"Are you so pessimistic? Purcell, the market hasn't even opened in the afternoon. Maybe in the afternoon, the dollar/yen will fall again?"

"Perhaps," said Philip Purcell:
"But Morgan Stanley chose not to play. And as far as we know, you are the biggest long. Make a price, Mr. Smith."

"Okay. It seems that you are determined. Morgan Stanley really deserves to be Morgan Stanley. You are decisive."

Abel smiled and said, "Morgan Stanley has 2% of Comcast and 3% of Google. Sell them to me at the current market price."

"No problem," said Philip Purcell immediately.

If these shares can make Abe Smith willing to let Morgan Stanley go.

Not to mention their current market prices.

Even if it was free, Philip Purcell would probably be happy.

But Philip Purcell knew that Abel could not be so generous.

A piece of meat the size of morgan stanley is right next to abel
It is impossible to put down the half-swallowed meat because of other small profits.

That's not Wall Street style.

If he did that, Philip Purcell would look down on Abel instead.

Think of the kindness of the Abel woman.

The kindness of a woman can not live long in Wall Street.

Sure enough, Philip Purcell was relieved by Abel's next condition.

"And I want to raise 5% of my shares in Morgan Stanley based on the market price. What I want are original shares with voting rights."

Compared with the previous "little request".

This request will make Morgan Stanley feel uncomfortable and embarrassed.

5% of the original shares with voting rights are not too small.

As a listed company, stocks have always been very dispersed.

More than 15% of the shares are super major shareholders, and more than 20% are relatively controlling shareholders

5% of voting shares.Among the shareholders of Morgan Stanley, it can even be ranked in the top 10.

These voting shares can already have more than two board seats on Morgan Stanley's board of directors.

Facing Abel's request, Philip Purcell gave him a simple and direct answer:

"Give me half an hour, Mr. Smith. In half an hour, I will answer your question directly."

"No problem. I'll wait for you, Philip."

"Goodbye, then, and have a nice afternoon."

"Have a nice afternoon too~"

The phone was hung up there by Philip Purcell.

Only then did the smile on Abel's face subside.

Holding his mobile phone, he looked across to Manhattan from the third floor.

This time he didn't fantasize about the bloodshed on Wall Street.

He was thinking about Morgan Stanley.

Abel believes that there is a high probability that Morgan Stanley will accept his request.

There are several reasons.

One is Abel himself, who already owns around 1.6% of Morgan Stanley.

This is part of the shares he acquired in the secondary market, that is, in the stock market.

Although the shares bought in the secondary market do not have voting rights, they have the same value.

Although they have no voting rights, they are not original shares.

But he can also be regarded as one of the major shareholders of Morgan Stanley.

under these circumstances.

Letting his holdings exceed 5% does not embarrass Morgan Stanley.

The second reason is that Abel already had a great reputation in Wall Street.

After this World War I.

His reputation on Wall Street is bound to rise to a higher level.

His first confrontation with Wall Street has so far been a complete victory.

This also means that he has truly established himself on Wall Street.

Self-supporting success! !
Smith Capital + Pacific Bank of Commerce will become one of the new Wall Street giants.

Get a new Wall Street magnate on the board of Morgan Stanley.

This can be said to be very normal.It is also very much in line with Morgan Stanley's corporate culture.

In the end, Morgan Stanley probably figured it out.

USD/JPY will continue to go higher.

If there is no way to close the position in time, Morgan Stanley will continue to lose money.

This will lead to a very ugly financial statement for Morgan Stanley this year.

In order to stop the loss in time, there is nothing wrong with bringing Abel into the Morgan Stanley board of directors.

Sure enough, it didn't take half an hour.

Only a few minutes later, Philip Purcell called again.

"The board has agreed. From now on, Mr. Smith, you will also be a member of the Morgan Stanley board."

Philip Purcell said quickly.

The CEO of Morgan Stanley even changed his tone when he called this time.

Become respectful a lot.

Abel couldn't help laughing, this confrontation with Wall Street.

One of the off-court resources he wanted the most, in his hands.

"No problem. Now that I have become a member of Morgan Stanley's board of directors, I certainly cannot sit back and watch Morgan Stanley's serious losses and remain indifferent."

Abel responded with a smile: "Let the people from Morgan Stanley's trading department come over here to connect."

"Thank you for your helping hand, Director Smith."

Philip Purcell was also a wonderful man, who changed his address all at once.

"Haha~ Mr. CEO, I hope we can cooperate happily in the future."

"Pleasant to work with."

The phone was hung up by Abel, but before the smile on his face subsided.

This business phone was started again.

Abel looked at the contact note, it said Richard Fuld.

His unrestrained smile bloomed again, and became more presumptuous.

A call with Richard Fuld of Lehman Brothers.

It's pretty much the same as Morgan Stanley's Philip Purcell.

In bargaining.

He got 5% of the voting shares of Lehman Brothers and entered the board of directors of Lehman Brothers.

Lehman Brothers also owns 5% of Google and 2.5% of News Corp.

It's Murdoch's News Corp.

Lehman Brothers is Murdoch's largest investor on Wall Street.

This is why in the parallel time and space, when Lehman Brothers was on the verge of collapse, the reports of Murdoch's News Corporation were all positive.

Abel had already obtained 3% of the shares of News Corporation from the desert stock god.

If the 2.5% is added, he will also have more than two board seats in News Corporation.

Next, Abel's entire noon.

Almost all of them are spent on answering the phone and bargaining.

During this hour, the smile on his face never restrained.

in the afternoon.

When the New York Stock Exchange is about to reopen.

These calls have slowly become rarer.

Abel felt a little regretful, he didn't expect that Goldman Sachs would not end this time.

This allowed him to collect the four major investment banks in Hollywood, no, it should be said that the achievement of collecting the board seats of the five major investment banks could not be achieved.

Hmm.. There are originally five of the four major investment banks on Wall Street. This is common sense, isn’t it?

The fifth is Bear Stearns, which is common sense.

At present, Abel has gathered the board seats of Bear Stearns, Lehman Brothers, Merrill Lynch Securities, and Morgan Stanley.

Only one Goldman Sachs is missing, and he has achieved success.

But because Goldman Sachs was absent in the early stage, it even joined in to do long in the middle.

This achievement of his is obviously impossible to complete for the time being.

In the afternoon, within 10 minutes of opening.

Short capital, trying to carry out a dying struggle.

This caused USD/JPY to fall back to 117.360 within half an hour.

But at this time, how could the bulls let go of the beautiful meat in front of them?
Struggled for about an hour or so.

USD/JPY has returned to the 119 line again.

After three o'clock in the afternoon, the line touched 120.

120 seems to be the last warning line for the bears to struggle.

After breaking 120, it will be like a flood.

Wait until January 1th.

USD/JPY came around 123.650.

within two days.

More than [-] small and medium-sized investment banks and securities companies on Wall Street declared bankruptcy.

At the same time, many giants on Wall Street are inside.Within these two days, new appointments and dismissals were announced.

For example, Stanley O'Neill, the first vice president of Merrill Lynch, was announced to be dismissed and is said to have been investigated.

Bryn Bulley, chief financial officer of Lehman Brothers.He was also forced to resign and helped the bulldogs of Wall Street to take the blame.

Morgan Stanley and Bear Stearns have similar appointments and dismissals.

Among the giants, there are only PNC Financial Services Group and Goldman Sachs, and there is no unusual movement.

This is the case on Wall Street.

Put your eyes on the world.

Small and medium-sized investment banks that have declared bankruptcy or are on the verge of bankruptcy in the past few days, plus Wall Street.

Quantity should be doubled.

A total of more than [-] small and medium-sized investment banks and securities companies closed down and went bankrupt.

More than fifteen Wall Street giant executives "resigned" and were dismissed.

Unfortunately for these companies and executives.

It seems to imply the rising of a new Wall Street giant.

Smith Capital, which has been established for less than a year.

Through this battle with Wall Street, it has declared its status and sense of existence.

At the same time, along with Abel Smith, he was welcomed into the board of directors by four of the five largest investment banks on Wall Street.

after becoming their director.

The name Abel Smith.

Finally, there is a new nickname on top of the original "Wolf of Wall Street" nickname.

Some people say that Abel's new nickname should be "King of Forex".

Because almost most of his money is earned in foreign exchange.

But there are many who are against it.

A larger number of these people think that Abel also has very terrifying gains in stocks, crude oil, and precious metal futures.

I didn't see the US stocks that Smith Capital invested in.

It's still less than a month away.

Their overall increase has exceeded 50%?

Some people believe that Abel Smith, the new Wall Street giant.

His new nickname should be "God of Investment".

Even if you can't use such an exaggerated title as "God".

At least it should be nicknamed "King of Investment" or "King of Finance".

Anyway, in the first month of 2001.

The entire Wall Street, and even the entire United States, financial and financial-related publications and programs are full of Abel's name.

A large number of experts, commentators, and analysts related to finance.

They all want to know, in this foreign exchange black swan event that lasted for about half a month and was called "Smith Forex Month" by the industry.

How much did Abel profit.

This situation has even extended to the financial publishing industry around the world.

After Storm Smith in October.

Within the global financial and financial media, a new "Smith storm" has once again blown up.

(End of this chapter)