Investor That Can See The Future

Chapter 141

Jin Yeo-jun took a breath and then spoke into the microphone.

“According to the information we received, there were 450 withdrawals the night before Hoseong Savings Bank’s business suspension. At a time when other customers could not find money and wander around, someone was able to withdraw their money from the deposit.”

Jo Woo-jin nodded his head.

“The people who stole the money are the bank VIPs, such as relatives of executives and employees, friends, politicians, local officials, prosecutors, lawyers, doctors, etc. Obviously, the bank door was not opened, and Internet banking was also blocked, so how could only these people be able to transact? What’s even more absurd is that the inspectors of the Financial Supervisory Service were already at the headquarters at this time. However, while watching the money being taken, no action was taken. What the hell is the Financial Supervisory Service doing? Does it make sense that the institution that should supervise financial institutions condoned such illegal activities?”

Jin Yeo-Jun couldn’t stand it any longer, so she loosened her tie and shouted.

“So these bastards blocked internet banking so that ordinary customers couldn’t take a single penny, and all the VIPs’ money was withdrawn. The FSS looked at it and stayed still!”

Jo Woo-jin said sarcastically.

“The interesting fact is that the wife of the party leader Choi Myung-hwan of the Korean House of Representatives is included in the list of more than 400 withdrawals. As you know, Rep. Choi Myung-hwan has been shouting harder than anyone else that Kang Jin-hoo is a financial scammer and that Hoseong Savings Bank is safe. But that person took all the money the night before.”

Jin Yeo-Jun smashed her desk with her fist.

“No, your Excellency says that Hoseong Savings Bank is safe, but does it make sense for the party leader of the Korea Party to withdraw money first? Do you hear your words as bullshit? Such a human being is the true enemy of Your Excellency. Your Excellency, we must eradicate such enemies first!”

“And Rep. Kim Han-cheol was also on the list. The full amount was withdrawn from the account in the name of you and your parents. The bank run is wrong, and the depositors who run to the bank to withdraw money are called lemmings, but he was the first to bank run.”

“Gee is self-criticism for being a lemming, what?

“Among the politicians who stole money, most of them belong to the Korean House of Representatives. Parliamentarians, mayors, mayors, governors, city councilors, ward councilors, etc. If these names are made public, the community will be shocked.”

“Ah-oh! You bastards with no real conscience.”

Jo Woo-jin arranged the story on behalf of Jin Yeo-joon, who could not hold back his anger.

“These people may think they stole their money, but absolutely not. If the bank goes bankrupt, depositors will get their money back in proportion to the loss. In the end, the amount that other depositors can recover will decrease as these people withdraw. In a nutshell, it’s as if they stole other depositors’ money. We need to investigate all these people right now and recover all the money they lost.”

“If only half of our efforts had been put into the aftermath of the earthquake, the FSS and Hoseong Savings Bank officials would have already been captured.”

“If Hoseong Savings Bank goes bankrupt, it will end with only the common people. Then you will be a complete enemy.”

* * *

Lemming’s remarks stirred public opinion.

Rep. Kim Han-cheol explained that he did not intend to disparage the depositors, but the scandal did not subside.

In this situation, the public outrage exploded when an article broke through the news stating that only VIPs were withdrawn on the night before the business suspension, and the FSS knew and tolerated it.

Rep. Choi Myung-hwan explained to reporters who came to cover the story.

“I don’t know anything about it. After all, that’s what my wife did.”

“You really didn’t know?”

“My wife manages the money, so how do I know as a husband?”

“There is a report that a lawmaker called Min Seong-ju, president of Hoseong Savings Bank, directly, how did this happen?”

“… … It will not answer.”

In a call with reporters, Rep. Kim Han-cheol said, “I called an executive I knew because Internet banking was not working, and they took care of it. He didn’t know it was a favor, and I thought he was doing it for all customers.’ He gave an absurd answer and hung up the phone.

There was a flood of protest calls to the Korea House Party. Most of them were party members. It was only natural that the area where the Hoseong Savings Bank is located is the garden of the Korean family.

* * *

Taehyung looked down.

“The Parents’ Union went to work today.”

After I made my remarks, the parents’ union protesters appeared in front of the company. Dozens of elderly people gathered, hung banners, and even mobilized loudspeakers to protest.

Apart from the protests, I’m not sure why the words ‘incitement of the pro-North Korean left’ or ‘protection of a free Korea’ are used here. Why is the American flag waving again?

Is there anyone who is as friendly with the United States as I do and loves capitalism?

Although there was no report of the assembly, the police did not stop it, and the three broadcasting companies and the conservative newspaper worked hard to cover it up and sent it out as an article.

I laughed out loud when I saw the breaking news article.

“These bastards really… … .”

“Did you expect this too?”

“No, I didn’t know it would be this much garbage.”

I never imagined that I would only withdraw money to VIPs the night before going into business suspension. At least the remaining money was given to those who had it, so the share of return to ordinary customers was further reduced.

“Can you get that money back?”

“It will be difficult.”

Even if those involved are disciplined or punished, it is not easy to recover the money that has already been lost.

“At this point, shouldn’t we go to the Korean National Party and protest?

“The victims must have come.”

No one believed that Hosung Savings Bank was safe anymore. The victims waited for the government announcement with a glimmer of hope.

Politicians kept their mouths shut to the point that it was insignificant that they had poured out intense criticism in the meantime. The media also stopped criticizing me at some point.

Taek-gyu asked as if he didn’t understand.

“But didn’t everyone know until it got to this point?”

I clicked my tongue and said.

“Because humans are stupid and make the same mistakes over and over again.”

You don’t know whether a bubble or bankruptcy until it bursts. But when it explodes, things that have not been seen before are revealed without filtration.

Hoseong Savings Bank has grown thanks to Park Si-hyung’s preferential treatment.

In hindsight, none of the privately funded projects had business potential. Nevertheless, Hosung Savings Bank, which became an investor, made a lot of money. It was possible because even if there was a loss, it was covered by taxes.

But the executives mistakenly thought it was because they were good at management.

So, after that, he continued to invest in high-risk businesses, and for that purpose, he established a special purpose corporation and approved the loan.

In case of insolvency, he kept hiding by manipulating the ledger. He must have been confident that he would be able to pay off his immediate loss by making a profit.

“Of course, there is no way such illegal loans and fraudulent accounting could have just happened. From low-level civil servants to politicians, there must be no one who did not receive money.”

There are two reasons why the problem that would have arisen sooner if it had been with other savings banks has not been revealed until now.

One reason is that the organization that should be supervised is the president’s in-laws’ house, so they only checked the books roughly and the other is that the size has continued to grow.

Even if you fail to repay 1 trillion of loans, there is no problem if you receive 1.5 trillion won in deposits. If you can’t collect 2 trillion won, it’s enough to receive 3 trillion won.

However, as growth slowed, problems began to emerge.

The increase in deposits continued to decline even though fixed costs snowballed due to the forced expansion of branches and employees.

While loans were not collected on time, deposits raised at high interest rates returned to maturity one after another. In order to prevent the cash flow from being tight, the precipitation of subordinated bonds was also brought out.

However, there is a limit to blocking.

If I hadn’t stepped in, it would have collapsed in less than a year. And until then, it must have continued to suck the money of ordinary people like a black hole.

“How often does something like this happen? The IMF crisis and the credit card crisis.”

Even before the bankruptcy broke out, the government was holding hands.

Then and now, the damage is always the responsibility of the common people.

* * *

The entire country was in turmoil due to the suspension of Hoseong Savings Bank.

This was also a testament to the great influence that Jin-hoo Kang has in Korea. Especially in the financial world, there is no need to worry.

For this reason, from the moment he spoke, financial companies kept a close eye on Hosung Savings Bank. No one in the industry thought that he had pointed out the insolvency of Hosung Savings Bank without any basis.

It is certain that there is some inadequacy. What matters is how big it is.

When the detailed audit and on-site inspection began, everyone was alert.

At first, there were rumors that hundreds of billions of insolvency had been discovered. Up until this point, everyone thought that the government could stop it.

However, the amount quickly increased to 1 trillion won. Considering that the investigation is still in its infancy, it is unclear how much bigger it will be.

Institutions all started selling Hosung Savings Bank bonds that they held at once. Hosung Savings Bank’s bond credit rating was ‘AA-stable’ on the surface.

As the selling volume poured in, the price plummeted to less than half. If you hold the bond until maturity, you can sell the bond right away, even if you take a loss of half.

What this meant was clear.

The market judged that Hosung Savings Bank would not be able to hold out until maturity.

By this time, the press also noticed the Sim Awakened of the situation.

Mainstream media did not write articles that were against the government. Therefore, it was decided to wait until the government announcement came out.

However, the government postponed the announcement until the end of ten days, and said that the investigation would take time and that it would extend the period a little more.

If there were no problems, the investigation would have ended sooner. This was, in effect, tantamount to admitting that there was insolvency.

When the extension of the investigation was announced, the bond prices of Hoseong Savings Bank plunged to 20% of their par value, and the bond prices of other savings banks fell all at once. Anxiety showed signs of spreading across bank bonds.

The media, who only looked at each other, wrote articles and sent them out belatedly.

[(Breaking News) Hosung Savings Bank estimated accounting fraud of more than 3 trillion won][(Emergency Breaking News) Hosung Savings Bank, Worst Accounting Fraud in History][It turns out that subordinated bonds were sold until the day before the business suspension][Protection of up to 50 million won in principal and interest, subordinated receivables are not protected]

People who saw the article were astonished at the scale of the insolvency.

The internet has been turned upside down.

-Is it true that the bankruptcy of savings banks exceeds 3 trillion won?

– Wow! Sir, I’m tired of the in-laws scale! You can eat it like that. It’s not like I became your son-in-law for nothing.

-Is there any possibility to resume business?

-Haha already capital erosion, bankruptcy is confirmed.

– Your Excellency VS Otaku 2nd round. Otaku wins!(Read more @ wuxiax.com)

– Your Excellency, two losses. You need to be a little more daring.

– You were right after Kang Jin-huo. Oh oh! After fresh!

-I lived because of Kang Jin-hoo. My father also said that the teller was twisted and almost bought subordinated bonds.

– This time, Jinhoo Kang saved several people.

-By the way, what happens to those who bought subordinated bonds? It seemed like they weren’t alone.

– Subordinated bonds are not the answer to the board where you can’t even get your deposit back.

* * *

Finally, on the 15th day, the government announced the results of the audit.

Cha Jong-ho, the head of the Financial Supervisory Service, appeared in front of reporters.

“As a result of the investigation, it was revealed that there was a large-scale accounting fraud. Hosung Savings Bank’s actual BIS ratio is 53%, and it is virtually capital erosion. Therefore, we would like to inform you that it is difficult to resume business for the time being. We will open the Financial Services Commission as soon as possible and designate it as an insolvent financial institution while devising measures for management improvement.”

After the presentation was over, reporters asked questions.

“Is management improvement possible? Isn’t that actually bankruptcy?”

“Last year, there was a large-scale detailed audit and on-site inspection, so why didn’t you find out about the insolvency?”

“Why didn’t you stop illegal withdrawals the night before the business suspension?”

“I announced that there was no problem a week ago, but what the hell happened?”

“As the head of the Financial Supervisory Service, shouldn’t you first apologize to the people?”

Cha Jong-ho said a word while wiping the sweat dripping with his handkerchief.

“I will not take any questions.”

* * *

Surprised depositors rushed all at once in front of the Hoseong Savings Bank’s main branch. However, the door to the bank was firmly shut, and there was only a notice announcing the suspension of business.

“Open the door!”

“Give me my money!”

“Tell the boss to come out!”

Kim Soon-rye sat down on the spot. Then she burst into tears and clasped her hands together and begged.

“Gosh! I was all wrong. I was so stupid I didn’t even know what subordinated debt was. If you don’t have that money, you and I will all die. please save me I’m begging you like this, so please give me my money back.”