The Son of Finance of the Great Age

  Chapter 544 The first loss in history (8)

  After all kinds of bureaus have been laid out, the parties involved began to quietly wait for the moment of explosion to arrive. However, Stanley's company apparently forgot one thing, that is, fire cannot be contained in paper.

  In order to get rid of this part of the position as soon as possible, Stanley's trading department had to sell in the market, although it was a gradual and small sell-off. But the traces of this kind of operation still cannot be concealed from the observation of other traders, and soon they found that the extremely straightforward and generous Stanley traders on weekdays became different, and began to haggle and haggle more carefully, and often It was buying less and selling more, which surprised them very much.

   Soon, rumors about the situation of Stanley's trading department spread on Wall Street. Although these rumors were strictly denied by Stanley, this did not stop the decline of Stanley's stock price. Soon, Stanley's stock price fell by more than 10%.

Regarding the decline of his company's stock price, John Mark undoubtedly felt both sorrow and joy in his heart. On the one hand, he felt very helpless and sad. There was nothing he could do about the current situation. On the other hand, he is also happy for his old friend, because the other party can finally get revenge this time.

  Although the time is difficult, but in the end we must continue. Finally, after entering December, some listed companies began to disclose their financial statements for the third quarter one after another, including Stanley Corporation. When the market rumors became more and more serious, Stanley's report was finally disclosed, and the result was naturally not surprising.

   Huge loss!

  The biggest loss in Wall Street history!

Although it was announced last month that the investment loss in the subprime mortgage market reached 3.7 billion US dollars, on December 19th, the financial statement disclosed by Stanley Company significantly wrote off the book assets by 5.7 billion US dollars. In U.S. dollars, the two losses combined amounted to a staggering $9.4 billion.

  In the trading history of Wall Street, if inflation and other factors are excluded, the loss of this transaction has undoubtedly become the largest in history. As a direct result, this is the first time that Stanley has suffered a quarterly loss since its establishment more than 70 years ago.

  Although Wall Street had already had rumors about the unstable situation of Stanley Company before this, and Stanley Company also announced some losses in due course, but after the real figures were disclosed, the entire Wall Street was dumbfounded.

   What kind of company is Stanley? I believe that anyone who has a little knowledge of finance knows this name. This Wall Street giant has always been ranked among the top five in the investment industry, and was even synonymous with investment banks at one time. At their peak, they even chanted the slogan "If God wants financing, he will also find Stanley". Although it was sluggish in the 1990s, the giant has now regained its vitality and has become the second largest investment bank in the world after Goodman & Company.

This giant, which ranked 61st in the Fortune 500 in 2006, manages assets of more than 700 billion U.S. dollars. In the first three quarters before November 30, its net income reached a staggering 28.267 billion U.S. dollars. Net income of nearly $10 billion was booked for the quarter. But in this quarter, because of the huge losses in the subprime mortgage market, the financial statements for the entire quarter were extremely ugly, and the losses reached as much as 70 million US dollars.

   Just as the whole of Wall Street was gearing up to short-sell Stanley's stock, the plot reversed like a god.

Not long after the report was disclosed, the public relations department of Stanley Company quickly released another report. In the report, they happily announced to investors that Huaxia Investment Co., Ltd. from Huaxia had purchased a A convertible bond that can be converted into common stock after maturity, which will be forcibly converted into common stock of Stanley Corporation after maturity, and the price will not exceed 120% of the reference price. According to estimates, after the bonds with a total value of 5 billion US dollars are converted into common shares, the total share will not exceed 10% of Stanley's current total share capital.

   This part of the bond will expire on August 17, 2010, which is more than two years from now. In other words, it basically gave Stanley Corporation two more years to breathe. Of course, for Huaxia Investment Co., Ltd., being able to acquire high-quality assets from European and American consortiums is also a huge capital victory.

Immediately, Stanley's stock, which had been on the decline since August, stopped its downward momentum. The long and short sides obviously had different views on the injection of funds from the Huaxia Consortium. Lee's shares edged up 0.4%.

  …

   "Zhong Sheng, I didn't expect them to suffer such a serious loss and set many first records!"

  After receiving the financial statement released by Stanley Company, Jiang Shan hurriedly walked up to Zhong Shi who was bowing his head in meditation, and said to him somewhat flatteringly.

  This is a building located in downtown/downtown New York. Tianyu Fund has taken over half a floor of the building, taking over all Hong Kong traders who are responsible for the US and European markets. After tidying up, this place has turned into a huge trading department. In front of everyone are four to five display screens with different vertical and horizontal directions, and an order terminal similar to a tuning device in front of them, and the buzzing The buzzing phone rings one after another, and almost everyone is busy.

  Looking at the Empire State Building not far away, Zhong Shi was thinking while drinking bitter coffee. After hearing Jiang Shan's words, he curled his lips slightly towards Jiang Shan, as if he was muttering to himself, or mocking Jiang Shan's overreaction, "Isn't this a well-known fact? Is it worth the fuss?"

   "What, you already knew?"

  Jiang Shan was stunned for a moment, looking at Zhong Shi in disbelief, his eyes full of inquiries, he was really shocked by the news.

"Huh?" Zhong Shi turned his head sideways, looked at Jiang Shan's astonished expression, and realized that Jiang Shan didn't know about their contact with Stanley Company, he waved his hand and said, "They once wanted to sell a The bond was given to us, but we politely refused after carefully calculating the risks and benefits of the bond. All this information was learned at that time, and they thought about selling it to others later, but now It seems that it is still rotten in the hands after all."

   I’m not used to it when I don’t have monthly tickets and rewards. Although I know that looking forward to voting every day is a luxury, I still can’t help but look forward to it. In short, thank you for your support. The author will work hard and work hard~

  (end of this chapter)