Manhattan Reborn 1978

new York.

It's approaching evening~

Manhattan, Blue Crystal Hotel.

Lilith stood at the door of a room, took a few deep breaths, opened the door and walked in.

Neria Norton Morgan, who had just arrived from Boston with her family, was in the room with her eldest sons Panaris and Elder, her eldest daughter Cheryl, her sons-in-law Tuss and Grace, and her youngest son Giles. Chatting with Pine, Bloomer and others~

After everyone saw Lilith pushing the door open and coming in, everyone was silent for a few seconds with different expressions on their faces. .

Neriya didn't speak, she just looked at Lilith with a calm face~

Giles and Pine, Elder and Grace, all stood up. .

They looked at each other quickly, and Pine walked towards Lilith with a smile, pulled her down next to Grace, and sat down~

Cheryl, who was sitting next to her mother, observed her mother's expression calmly, stretched out her arm and held her arm, smiling.

"Mom, Lilith is already here!"

"Did you also take out the gift?"

Neriya glanced at her daughter beside her, then swept her eyes from the people standing, and finally landed on her eldest son Panaris. .

Panaris stood up with a smile, walked to his mother, squatted down, and said, "Yes ~ Mom!"

"you.."

"Okay, you don't need to say anything!"

Neriya sighed softly, took out a jewelry box from behind, looked at Lilith who was feeling a little uneasy and said.

"I brought a set of jewelry passed down to me from home: rings, necklaces, earrings and brooches~"

Neriya lowered her head and stroked the jewelry box with her hands. Her calm words made the children around her feel a little embarrassed and turned their heads away. .

"This is the gift I prepared for my daughters!"

"Cheryl chose the brooch, Grace chose the earrings, and all that was left was the explanation and the necklace."

"Lilith, give them all to you now!"

"..."

Under the encouraging looks of several people, Lilith walked up to Neriya and took the jewelry box. .

Seeing that she was still a little timid, Cheryl couldn't help but put a little more force on her hands and said to her mother: "The guest list that Pine just mentioned..."

"Ok!"

Neriya turned to look at Pine, who was standing next to Giles, and asked: "Have you given the list...have you read it?"

"Yes!"

"He has no objection?"

"No~"

"Then let it be~"

"I'm tired!"

"Tomorrow, let's go to the hotel to see the venue~ Let's do this for today!"

"Ok!"

. . .

Cheryl held her mother's arm, threw a sign to her husband Tuss and her brothers and sisters, and left with a smile~

As the eldest son in the family, Panaris felt like he had dodged a bullet. .He took a deep breath and smiled at a few people.

"Okay~ Do you have any plans for the evening?"

"..."

Elder frowned slightly and sat down next to Panaris calmly. .

Grace glanced. .Her ex-husband, Elder, walked over to Lilith, who was still standing there in a daze, and whispered.

"Let's go~ I'll go back with you!"

"Let's send her back~ It just so happens that Bloomer also wants to see David!" Giles suddenly stood up and smiled at Grace.

"Huh?" Grace glanced at Pine who was following Giles, raised the corners of her mouth slightly, and asked.

"Can't I be together?"

"Um...of course!" Pine stepped forward and held Giles' shoulders, smiled and nodded to Grace, then turned to Panaris and said.

"The last time David went to London, he met Gerald and Canes. They all came over~"

"And little Peter will arrive in New York early tomorrow morning..."

"So, let's go over and meet them tonight!"

"Okay!" Panaris thought about it a little surprised and nodded.

"Send good wishes to David and his friends for me~"

"Ok!"

Pine stepped forward, holding Lilith with one hand and holding Grace's arm with the other. He winked at Giles and strode out of the door~

Giles raised his eyebrows with a crooked mouth, waved to his brother and Elder, and followed them out. .

. . .

What should go, what shouldn’t go. .All gone!

In the room, only Panaris and Elder were left~

The two of them sat there with their own thoughts for a while before Panaris stood up and walked to the phone and asked Elder.

"phone number?"

"You..." Elder said only one word and looked at Panaris silently.

"Speak!"

"Do you still want me to wait?"

Elder sighed, gave out a phone number, and then said: "I don't suggest you do it now..."

"I heard it!" Panaris held the microphone in his hand and whispered back while playing the number.

"..."

----

Manhattan.

42nd Street, above Wildfire Bar.

top layer.

David was sitting sideways by the window, holding a small dessert in his hand, talking to the camera and eating easily. .

“It wasn’t until 1913 that the Federal Reserve System of the United States, which was designed to enhance the security of the banking system, was established, marking the re-emergence of the central banking system in the United States~”

"All national banks must become members of the Federal Reserve System and accept a series of rules and regulations set by the Federal Reserve Bank of America!"

"State banks at that time could choose to become a member of the Federal Reserve Bank of America or not join this system."

“Therefore, due to factors such as having to accept the constraints of the Federal Reserve Bank of America’s rules and regulations and high operating costs, most state banks have not joined this system~”

"By 1930-33, during the Great Depression..."

"About 9000 banks across the United States have collapsed, causing many commercial bank depositors to lose their deposits."

"The federal government, in order to prevent depositors from suffering huge losses due to such incidents in the future."

“The Banking Act of 1933 established the Federal Deposit Insurance Corporation (fdic) to provide federal insurance for bank deposits~”

“And it also stipulates that member banks within the Federal Reserve System must purchase FDIC insurance for depositors!”

“Banks that are not members of the Federal Reserve Bank of America can also take out insurance~”

"In fact, most non-member banks of the Federal Reserve Bank of America do the same thing."

David took a small piece of dessert from the small table next to him, put it into his mouth, and said with a smile: "The Banking Act of 1933 is often called the Glass-Steagall Act."

"It prohibits commercial banks from engaging in business such as underwriting and issuance of corporate securities, but allows them to purchase newly issued government bonds."

"It also imposes strict controls on the purchase of bonds approved by banking regulators~"

"Similarly, it prohibits investment banks from engaging in the same business as commercial banks."

"For example: First National Bank of Boston, transferred its investment banking operations to First Boston Corporation."

"There is also JP Morgan Bank, which transferred its investment banking business to Morgan Stanley..."

"But it is precisely because of the very unique history of banking development in the United States and the Glass-Steagall Act that after World War II, the United States has more than 6000 commercial banks, more than 1000 banks and loan associations, and nearly 400 Protect savings banks and more than 7000 credit unions."

“Does this high degree of decentralization in the banking industry mean that the U.S. banking system is more competitive?”

"Does it run more efficiently and healthily than other countries' banking systems?"

"The current supervision of commercial banks in the United States has become a chaotic system composed of multiple regulatory agencies with overlapping powers."

"The Federal Reserve Bank has the authority to supervise and regulate all bank holding companies and their affiliates and foreign branches of state member banks."

"But in fact, a large amount of daily supervision work is completed by the Currency Supervision Office under the Ministry of Finance."

"And what I learned from Chase Bank, Morgan Bank, Mellon Bank, etc. is..."

"Now, Columbia banks across the country will choose to entrust a licensed accounting firm to cooperate with them to complete their annual financial audit work."

"Even the Federal Reserve Bank of New York will start entrusting more socially licensed accounting firms next year to help with its annual audit work and reduce some repetitive and unnecessary labor."

"Nowadays, those who open banks actually need to find an external accounting firm to cooperate with them to conduct annual audits of their financial status."

"This can be considered a major feature of the American banking industry!?"

"Hehe~"

After David complained a few words to the camera, he shook his head and got back to the topic.

"Although banking institutions are still the most important financial institutions in the U.S. economic system."

"But in recent years, their market share of traditional banking businesses that absorb deposits and issue loans has been shrinking year by year~"

"Part of these businesses have been replaced by a shadow banking system through the deregulation of securities markets."

“Junk bonds, one of the hottest financial derivatives on Wall Street today, are the biggest manifestation of shadow banks’ erosion of traditional banks’ mortgage market share!”

David crossed his legs, tilted his head and glanced at the dim light outside the window, and continued.

"Since the 60s, domestic inflation and interest rates have begun to rise slowly, and they have become increasingly difficult to predict~"

“As the times advance, in order to survive in the new economic environment, financial institutions have to research and develop new financial tools that can meet customer needs and are profitable, such as new products and services.

"The basic types of financial innovation can be roughly divided into three categories: innovation that adapts to changes in demand; innovation that adapts to changes in money supply; innovation that circumvents controls~"

“Financial innovation is to maximize profits~!”

"This is also very beneficial to economic development!"

"Because the biggest change in the economic environment is undoubtedly the increasing volatility of interest rates!"

“50年代，3个月期的国债利率波动，介于1％－3．5％之间。”

"But in recent years, its fluctuation range has expanded to about 4%-10%."

"And I predict that... after entering the 80s, it will further expand the range to more than 5%-15%!"

"Significant fluctuations in interest rates have caused huge losses in capital gains and increased uncertainty in investment returns. I won't go into too much detail here~"

“But we can predict that the rise in interest rate risk will increase the demand for financial products and services that can control this risk!”

"We can give two examples~"

"For example: In 75, the California Savings and Mortgage Association began to issue variable-rate mortgages~"

"That is to say, the interest rate of the loan will usually be adjusted with the changes in the government bond interest rate. The fixed period of adjustment is 6 months."

"Later, the very attractive nature of variable-rate mortgages encouraged lenders to issue variable-rate mortgages at lower interest rates than traditional fixed-rate mortgages."

“So it’s been a hit with a lot of families!”

"But there are also many families who still prefer fixed-rate deferred loans, believing that they will not fluctuate with the interest rate, causing the risk of unpredictable interest increases."

"Similarly, in 75~"

"Commodity exchanges such as the Chicago Board of Trade, found that if they could develop products that helped investors and financial institutions prevent or hedge interest rate risk, they could make more profits selling these instruments."

"Futures contracts have been around for a long time~"

"But if we provide futures contracts for financial instruments... we will create a new type of financial derivatives~"

“Because the profit and loss of this contract are related to previously issued securities, investors can use it to hedge interest rate risks!”

"So, financial derivatives were born in 1975~"

“In addition, with the rapid development of communication technology in recent years, it is easier for investors to obtain financial information of companies related to their investments~”

“As a result, it is becoming easier and easier for investors to screen their companies’ credit quality, operating conditions, financial income, etc.~”

"Junk bonds, bonds with credit ratings below Baa that were once looked down upon by people, have gradually become favored by investors~"

"Similarly, short-term bonds issued by large banks and companies have gradually become favored by financial investors with the development of information technology and the rapid development of mutual funds."

“There is also the emergence of mortgage-backed securitization (mbs), which was just exited this year, to transform illiquid mortgage loans into negotiable low-risk + stable-income securities~”

“MBS has enhanced the liquidity of savings and loan banks’ deposited funds and given conservative investors more choices~”

When David said this, he suddenly remembered something and complained to the camera: "Oh! That's right!"

"The currency mutual fund I just mentioned is an investment method that issues fund shares and can be redeemed at a fixed price by issuing a check~

"For example, if you purchase 5000 shares with 5000 yuan, the money market mutual fund will start investing in government bonds, time deposit certificates or high-quality bonds of large companies, large banks, etc.~"

"After the Federal Reserve raised interest rates a few days ago, I wanted to buy some short-term government bonds."

"But all the short-term government bonds on the market have been taken away by mutual funds..."

"I just paid attention to the current scale of mutual fund development~"

"As of now, the total size of all mutual funds in the country has exceeded 100 billion yuan!"

"It is foreseeable that if the Fed chooses to continue raising interest rates next year, the scale is likely to exceed 300 billion."

"In three years' time, its capital scale will definitely exceed the 2000 billion yuan mark, and even reach more than [-] billion yuan~"

“So, in terms of avoiding regulation, money market mutual funds are also a very successful financial innovation!”

"Hehe~"

. . .

Gerald, Kanes and Holm, who were sitting not far from David, suddenly saw the housekeeper Acklade walking quickly towards the stairs~

David also heard the footsteps behind him, waved his hand to the cameraman, indicating that he should take a rest first, and turned to look at Ackleide.

"Yes...an emergency call from you!"

"Who called?"

"Mr. Otis Parker!"

"Me?" David blinked in surprise, stood up and signaled to the three of Jellal, and followed Ackleide out.

. . .

in the study.

David picked up the phone and heard it was very quiet on the other side, so he asked: "Otis?"

"..Um!"

"Is something wrong?"

"Have!"

"I got two messages."

"..You say~"

"The first one is that Iran has already had a definite result...according to the local time there, tomorrow they will announce a complete suspension of oil exports~"

"By then, all ports and oil tankers in Iran will be blocked..."

After hearing this, David was stunned for a few seconds and immediately asked: "Where did you get the news?"

"It's not important~"

"...Is it accurate?"

"precise!"

"Hi~hoo!!"

"What's the next news?"

Odis Parker, who was on the opposite side of the microphone, paused slightly and said.

"I contacted the Karu you asked me to contact~"

"He... caught the mastermind of the Lufthansa robbery and found almost all the stolen goods + stolen money~"

David's face showed confusion, and he asked in confusion: "Carew...arrest someone?"

"Correct!"

"The money he sent over later was all illegal money he stole from others..."

"Hi~"

"He doesn't want to die?!"

"What is this doing?"

"Is it because of this that he doesn't come to see me?"

"Correct!"

"Then you are calling now...what do you mean?"

"Are you sending a message for him?"

"..No!"

"He has left New York and left you a letter with me."

David sat down holding the phone and was silent for a few seconds before saying: "If you can contact him, bring me a message~"

"Even if he abandons it... he has the belief in procedural justice in his heart and chooses to deal with the problem in a way that results in justice~"

"He can't quit the game either!"

"Because the dealer of this deck of cards in life is God. No matter whether the cards in your hand are good or bad, you must face it!"

"Calm down! Don't be impatient and let yourself lose your way!"

"If you have anything to do, you can come back and talk to me~"

"Ok!"

"Well...are you okay?"

"Gone!"

"Then remember... come to my engagement ceremony the day after tomorrow!"

"Ok!"

----

Manhattan.

East 169th Street, in an old apartment building.

Otis Parker showed a smile, put down the phone, glanced at the "bandage man" sitting opposite, and said.

"You heard everything?"

"Um.."

"Then?"

"Are you still leaving?"

"Bandage Man" took out a pack of cigarettes from his pocket, lit one for himself, and said in a hoarse voice: "You have too many problems!"

"Hehe~ Okay!"

Otis Parker stood up, straightened his coat, held a top hat in his hand, and smiled.

"Will we meet again?"

"..."

"Goodbye!"

"..."

. . .

Otis Parker, gone.

"Bandage Man" turned off the lights in the room, walked to the window, and watched Otis Parker get into the car and go away~

He took a long drag on the cigarette and put out the butt.

The former Karu is dead!