The Son of Finance of the Great Age

  Chapter 40 Morgan Stanley

  Among the towering skyscrapers in Manhattan, New York, USA, two identical tower skyscrapers are particularly conspicuous. This is one of the landmarks of New York, standing at the World Trade Center at the southwestern tip of Manhattan Island.

The World Trade Center, designed by the Japanese-American architect Yamasaki, took seven years to build and was completed in 1973. It covers an area of ​​6.5 hectares and consists of two 110-story buildings up to 410 It consists of an eleven-meter-high tower skyscraper, four office buildings and a hotel. It was the tallest skyscraper in the world when it was built.

  As a world-renowned investment bank, Morgan Stanley has 1.2 million square feet of office space in the World Trade Center, which is the headquarters of this famous multinational company.

  As a large investment bank with operations around the world, Morgan Stanley has branches in all major financial markets around the world. Its headquarters in the Asia-Pacific region is set up in Hong Kong, of course, the Asia-Pacific region except Tokyo.

Morgan Stanley was originally the investment department of JP Morgan, but after the stock market crash in 1929 and the ensuing Great Depression, the U.S. Congress passed the famous "Glass Steagall Act", It is stipulated that banks are not allowed to operate in mixed industries, so the investment banking department was spun off, and another company was established to specialize in investment banking business.

After decades of operation, Morgan Stanley has miraculously surpassed its previous parent company in terms of profitability and influence, and has become a company that dominates the capital market. Therefore, some people call Morgan Stanley "Big Morgan" , while JP Morgan is known as "Little Morgan".

Within the investment bank, the general core business is the investment banking department and the sales and trading department. The main business of the investment banking department is to help companies go public and earn underwriting fees from it, while the trading department is looking for arbitrage opportunities in the ever-changing market. Make profits for the investment bank.

  The more than 10,000 orders that occurred on the S&P 500 in September came from the trading department of Morgan Stanley.

Although it was already night, the World Trade Center was still brightly lit, especially in the trading department of Morgan Stanley. Think about future trends.

   At this time, the center of the transaction has shifted to the Eastern Hemisphere, and the counterparts in Tokyo began to operate in the opening market, using every tiny price change to quickly conclude the transaction and use massive funds to arbitrage it.

   "Mike, have you found out the source of today's funds?" A middle-aged man in a white shirt, brown hair, and green eyes was asking a young man who was typing on the keyboard quickly.

   "Still investigating, I only know that it is from Avery's seat, who has not been found out yet." The young man frowned, and said somewhat uncertainly.

   "British guy? No way! Don't they know about our agreement?" the middle-aged man said thoughtfully.

Based on the historical relationship between the Morgan family and the United Kingdom, there is also a good cooperative relationship between the British consortium and Morgan Stanley. This time, after consulting the opinions of professionals, the British consortium decided to cooperate with Morgan Stanley. Some consortiums in the United States, led by Morgan Stanley, cooperated to jointly sell short stocks in the New York stock market, and at the same time go long on the S&P 500 futures index to hedge risks.

  As Morgan Stanley's deadly rival, Goldman Sachs, has united with some consortiums in the United States to go long in the stock market and short in the futures index, becoming the opponent of Morgan Stanley.

   Neither Morgan Stanley nor Goldman Sachs expected the RB consortium and Zhongshi to disrupt the situation.

   "No, the British would not do this! Then who would it be? Hong Kong? India?" The middle-aged man's face changed, and he thought of other possibilities.

  Places such as Hong Kong and India were formerly British colonies or are still British colonies, no matter what kind of situation they are, there is a high possibility of using British brokers to disrupt the situation. India is the second largest market in the world after China, while Hong Kong has prospered over the years, and has vaguely become a super-large financial center.

"I don't have any clue about that, and I can't find out who Fang Sheng is, but the opponent who traded with him has been found out. It is the self-operated channel of RB Sakura Bank. I believe it is their self-operated department!" The thin young man said again. There was a burst of rapid typing on the keyboard, and a smug smile appeared on his face.

   Although the system of the Chicago Mercantile Exchange is known as impenetrable, in the eyes of top hackers, there are still loopholes. The thin young man is one of the top computer hackers on the planet.

  As computer trading is prevalent today, some big investment banks have invested huge amounts of money in their IT departments, hoping to improve their computer trading systems, and at the same time hope to learn more about market trends and seek opportunities for themselves.

  Mike Taylor was such a talent. He was called into the IT department of Morgan Stanley as a computer engineer. In name, he was a member of the background control. What he actually did was to find out the ins and outs of certain large sums of money.

   "RB Consortium? It seems that they are unwilling to be lonely, and want to come here to get a kick!" The middle-aged man sucked in a cold breath, showing deep fear in his tone.

  Since the yen was forced to appreciate by several western countries, RB's consortium quickly found a way out of the predicament. In recent years, there have been countless funds pouring into the U.S. capital market, so much that the U.S. consortium is a little scared.

In the foreign exchange market, the bond market, and the stock market, there are RB funds everywhere. In the first few months of 1987 alone, RB funds flooded into the US stock market, roughly estimated to be tens of billions of dollars. These funds played a very important role in driving the Dow up.

   "If that's the case, it's a little troublesome! But why did the funds think of shorting? Could it be that they saw through our plan?" The middle-aged man frowned and thought for a while, but still couldn't think of any other possibility. How could he have thought that these were Sakata's own ideas, and had nothing to do with the direction of the RB consortium's operations.

  The RB consortium invested so much money in the US stock market, most of which were invested in the bond market. After all, bonds have stable returns and the least risk, and are the best choice for value preservation.

Those who pursued high-yield funds were invested in the U.S. stock market, but after all, this is the home of the U.S. consortium, and the RB consortium did not dare to be too sharp and take over the magpie's nest, but even so, the U.S. consortium shouted "The wolf is coming".

   "I have an idea, Mr. Sargent!" Mike raised his hand and said weakly.

   "Oh, what's your opinion, don't bother to talk about it!" Sargent was stunned for a moment, but he was a little surprised. He always thought that this kind of computer genius only knew how to bury his head in technology and didn't care much about other things.

"Look at these transaction records!" Mike pointed to the numbers on the screen, and explained a little excitedly, "Looking at the funds from RB, it is clear that when Avery's seat moves, it is invested with several times the funds. This kind of behavior seems to be a child's vindictiveness, or it is a deal that specifically hit Alfred, but it was accidentally destroyed by us!"

"Oh?" Sargent stared carefully at the numbers on the screen, concentrated on watching for a long time, couldn't help but tapped his fingers, and praised: "Mike, you are such a genius, you can think of everything, it seems that for RB As far as the consortium is concerned, they must know the source of the funds, or we can do something between us!"

   After finishing speaking, he laughed out loud, leaving only Mike with a confused face.

"What to do? Isn't it just joining forces? Do you really think I'm an idiot? Do these hateful traders really think of themselves as one percent?" After Sargent walked away, Mike was full of enthusiasm. His ignorant face suddenly turned into disdain, and he said frivolously.

As a well-known investment bank, all the people recruited are outstanding graduates from Ivy League universities with an average grade point of 4.5 or above. Some also require the ability to speak three languages ​​and double degrees. After a round of interviews, these elites on campus can get an OFFER.

  So these people in the main business department of Morgan Stanley always show some sense of superiority intentionally or unintentionally when they look at the staff in the backstage department.

  Actually, within the investment bank, people from the investment banking department and the trading department of the two major profit-making departments dislike each other, and there are many open and secret fights on weekdays. These backstage employees have heard of it.

An even more interesting joke comes from Goldman Sachs, Morgan Stanley's sworn enemy. It is said that when Goldman Sachs established the quantitative department, it invited two physicists who had won the Nobel Prize in Physics. dissatisfaction. When two physicists were chatting, a trader happened to pass by, strangled his neck in a strange way, and said mockingly: "It's such a powerful force field, I can't breathe!" Then he stumbled Leaving, the two academic experts were surprised for a while.

Although Mike is a computer genius, it does not mean that he is an idiot in securities investment. In fact, he has made a lot of money in the stock market following the big money by taking advantage of the convenience of working in the background. It's just that he is cautious by nature, and he didn't use his own account, so he hasn't been discovered by others.

"In this way, my chance to make money is here! It's just that I don't quite understand stock index futures, but these things are just a matter of a few nights for me. When I figure it out, I will quietly Follow behind to see how they operate, and I happen to be right behind 'the snipe and the clam fight, the fisherman wins'."

  Mike turned off the computer screen, thinking proudly in his heart, thinking of his pride, he couldn't help showing an excited smile on his face. But it didn't take long before he straightened his face and slowly packed up his things on the table, as if nothing had happened.

  He is learning Chinese during this time, and he is very proficient in using idioms. (Please click, please recommend, please collect, thank you)

  (end of this chapter)