The Son of Finance of the Great Age

  Chapter 584 Trip to Germany (1)

"Regarding the low-price acquisition of Bear Stearns recently, although the boards of directors of both parties approved the acquisition plan, the shareholders of Bear Stearns are not satisfied with the price of two dollars per share, and public opinion is against the Federal Reserve's rescue of Bear Stearns. There were also many complaints about the actions of Bear Stearns. Under the leadership of the largest individual shareholder, the British rich man Joseph Lewis, some Bear Stearns shareholders have formally filed a complaint in the New York District Court, accusing the current management of Bear Stearns of damaging their interests."

"According to the analyst's judgment, Joseph Lewis' move is nothing more than a request for a higher offer from the **** side. After all, he suffered heavy losses in Bear Stearns. And the Bear Stearns shareholders who initiated the class action lawsuit with him, I believe it is also based on the same psychology. Therefore, the general view is that the change of hands of Bear Stearns is irreversible, and all that is left is an offer from the **** side."

"In addition, according to the Associated Press, former Federal Reserve Chairman Greenspan publicly stated on the 8th that because the crisis brought about by subprime mortgage bonds has passed the worst stage, the US economy may bid farewell to depression within three months. But the decline in housing prices may last for about one to three years."

"The U.S. House of Representatives passed a bill on the same day to establish a mortgage insurance fund of up to 300 billion U.S. dollars to combat the risks emerging in the current insurance market. In addition, the bill also stipulates that up to 80% billion in interest-free loan assistance to help ease their repayment pressure."

  …

  In his private jet, Zhong Shi was staring intently at the financial news on the big screen. He leaned on the milky white sofa, holding the remote control to fast forward or rewind, and sometimes he even had to watch the key content two or three times.

   "Wow, this is really awesome here!"

After reading the Global Financial Bulletin, Zhong Shi was about to turn on the computer to read the latest interpretations of the analysts, when he heard Jiang Shan's high-pitched voice, and then saw him bouncing over, his eyes and brows flickering. It is the color of excitement.

  Zhong Shi smiled slightly, ignored him, turned on the computer on his own, and began to deal with official business. On the contrary, a few beautiful stewardesses standing behind him, after seeing Jiang Shan's slightly groggy reaction, Xianggu pursed his lips and laughed lightly.

   This is a private jet converted from a Boeing 777 airliner. This "World Airway", which was in service in 2006, has booked one at the beginning of its launch, and the price is a full 300 million US dollars. After getting the original plane, Zhong Shi sent the plane to the transformation giant JetAviation for a thorough transformation. The original 300 seats were all dismantled, and the vacant space was transformed into an "aircraft" according to Zhong Shi's idea. palace".

The entire plane has been transformed into three parts: entertainment area, dining area, and rest area. In the entertainment area, there is a small dance floor that can accommodate fifteen people. A 32-inch wall-mounted LCD TV is inlaid in front of the dance floor. The equipment is left for the DJ to play discs, and in the center of the dance floor, there is even a steel pipe that can be raised and lowered.

  The dining area can accommodate about 20 people dining at the same time. The long wooden table is on one side of the dining area, where food is placed. In the center is a rectangular marble dining table with fifteen seats in the front, back, left, and right sides. It is wide enough to have a candlelight dinner on this dining table. And in another small private room, there is a special restaurant for Zhongshi. Although the space decorated with oak wood is a bit ordinary compared to the outside, global telephones, fax machines, wall-mounted LCD TVs and even Internet ports remind that it is different from the luxurious outside. It's more like a working platform than a restaurant.

  In addition to the master bedroom, there are five luxurious guest rooms in the rest area, each of which can accommodate two passengers. Each guest room with a length of 10 meters, a width of 4 meters and a height of 2 meters does not feel crowded at all. The large and comfortable double bed and supporting entertainment facilities allow guests to have enough leisure while resting.

   In terms of safety, JetAviation equipped the aircraft with an anti-missile radar system and a missile early warning system. The safety level is almost the same as that of the "Air Force One" that the President of the United States rides on.

   It took more than two years for the entire aircraft to be completed from the factory to the final modification. Zhong Shi only accepted this plane at the beginning of this year, and this trip to Germany is his first time taking this plane.

As Zhong Shi's assistant, Jiang Shan was naturally the first time to take this plane called "SkyHorizon". As a result, he was shocked as soon as he boarded the plane. Under his guidance, he found the bell stone at the tail of the aircraft.

  This is the office area specially reserved by Zhongshi. The space is not too big, but it has all kinds of equipment. Nine 40-inch LCD screens form a video wall, which can receive satellite signals from all over the world. A high-performance computer equipped with seven screens displays the real-time market conditions of the global capital market at all times. Conference phones, printers, scanners, fax machines, etc. are all available, and these devices can ensure Zhongshi to conduct market tracking around the clock.

Seeing that Zhong Shi ignored him, Jiang Shan suddenly felt a little bored, and murmured in a low voice: "What a freak. Seeing his reaction, I wondered if what he said about boarding the plane for the first time was true. "Speaking, he also stomped his feet vigorously, feeling the thick Persian carpet under his feet, and the softness from the soles of his feet made him feel comfortable again.

   "Okay, the visit is over." Zhong Shi asked without lifting the stone, typing on the keyboard, "From April to May, do you still remember all the financial news from all over the world?"

  Jiangshan's memory is different from that of ordinary people, it belongs to the kind of photographic memory. When Zhong Shi couldn't remember what happened or forgot some data at certain times, Jiang Shan would remind him from the side. figures accurately. Over time, Zhong Shi got used to asking him questions directly.

   "Which aspect?" Jiang Shan changed his playful smile and immediately became serious. This sudden change made several stewardesses amazed, and couldn't help but look at him a few more times.

   "The CDO market from April to today." Zhong Shi stopped, tilted his head and thought for a while, and asked, "The information from financial institutions is best. I need to make a preliminary analysis and judgment on the current market."

   "Okay, boss!" Jiang Shan blinked, his head began to turn rapidly, and soon one message after another blurted out:

   "On April 8, an IMF report declared that in this global subprime mortgage bond crisis, it is estimated that the global capital market will lose at least one trillion US dollars.

  On April 10, Goodman Company announced layoffs, which is the second layoff plan announced by the company this year.

  On April 11, Japan's Mizuho Financial Group estimated that the group lost 4 billion US dollars in the transaction of subordinated debt last year.

  On April 14, Deutsche Bank announced the sale of up to $20 billion in debt. On the same day, it was rumored that the Singapore Investment Authority was interested in participating in UBS's 15 billion UBS franc financing plan.

  On April 16, **** released the first quarter report of 2008, and the profit was better than the general expectation. The government therefore announced that the subprime mortgage crisis was over, and announced that it would raise $6 billion as capital.

  On April 17, Merrill Lynch Investment Bank announced that it was affected by large-scale write-downs in the first quarter, and it lost $1.96 billion in the quarter. While releasing its quarterly report, Merrill Lynch also announced that it would cut another 3,000 jobs and warned investors that the situation may be more difficult in the next few months.

  On April 18, Citibank announced a write-down of US$13 billion, resulting in a loss of US$5.11 billion in the first quarter report, or US$1.02 per share, far exceeding Wall Street's expectations.

  On April 21, there were rumors in the market that Bank of America was planning to sell its shares in ICBC in order to strengthen their balance sheet.

  On April 24, Credit Suisse Bank announced a reduction of 5.3 billion Swiss francs, and its financial situation turned from profit to loss, with a loss of 2.15 billion Swiss francs.

   On April 30, the first quarter GDP data of the United States was released, with an increase of 0.6 percentage points. Some analysts believe that this is caused by the Fed's continuous interest rate cuts and the inertia of the US economic growth. This data does not represent the real economic situation.

"May 6, oh, just two days ago. Stanley, **** and Raymond Brothers all issued statements that they will lay off employees to varying degrees this month, cut salary expenditures to reduce costs. At the same time, the housing Limay announced a loss of US$2.19 billion in the first quarter, equivalent to a loss of US$2.57 per share. Also, UBS suffered a huge loss of US$11 billion.”

   After saying all this in one breath, Jiang Shan’s mouth was already parched. He took the mineral water delivered by the stewardess and took a big gulp, but he didn’t notice that the eyes of several stewardesses looking at him had changed.

"By the way, boss, are you ready to make another move?" Jiang Shan became excited again. Although Zhong Shi hadn't made a statement yet, he already subconsciously believed that Zhong Shi was going to make another move to shock the global market after a few months of dormancy. big move. After thinking about everything he said just now, he grinned unkindly, and then said, "The people from Huatou just reached an investment plan of 3.4 billion US dollars with Fannie Mae in early April. The average price of 4.5% of Li Mae’s shares is around US$62. Who knows that Fannie Mae’s stock price fell to US$55 after only half a month. The loss of Huatou was as high as 11.3%. It was a trading disaster. .”

The team led by Zhang Hang almost reached a transfer agreement with Fannie Mae's shareholders at the fastest speed, and then submitted the business to the SEC, because the number of shares was not too large, and it did not exceed the scope of the SEC. Fannie Mae needed funds urgently, so the SEC approved the deal within three weeks despite the fact that the other party was a sovereign fund from China.

   Regarding Zhang Hang's behavior, Zhong Shi was also very speechless. However, these are always other people's affairs, and he can't say much, so he glanced helplessly at Jiangshan, who was gloating at other people's misfortune, and said lightly: "We really can't control other people's affairs, let's take a look first, maybe it will be a big problem." A good investment. By the way, have we calculated the profit on Bear Stearns?"

"I figured it out, I figured it out a long time ago!" Upon hearing Bear Stearns, Jiang Shan smiled again, "The cost of a short position is US$165, and the average price of a cover position is US$47. The difference was $118, and after deducting the $60 million in interest expense over the period, we made a total of $1,214.4 million. Of course, these are pre-tax."

  In the last week before Bear Stearns was acquired, Zhongshi asked people to close short positions in the market one after another, and the stocks he bought were largely sold by Soros and others. Between this entry and exit, Zhong Shi perfectly closed out the previous short position, and the reason why he knew this information was completely leaked to him by John Paulson unintentionally.

Although Zhongshi can close out the positions in the market after Bear Stearns is acquired, once the acquisition process is entered, the liquidity in the market will inevitably shrink, and the short position of about 10% of Bear Stearns shares wants to close out No easy task. To be on the safe side, Zhong Shi gave up part of the profits. (It’s a great event to drop pie in the sky, cool mobile phones are waiting for you! Follow up~click/Chinese website official account (add friends on WeChat-add official account-enter qdread), and participate immediately! Everyone has a prize, now immediately Pay attention to qdread WeChat official account!)

   Thank you book friend Xiaoqi for the miracle of civilization, I was not the one who voted for the monthly ticket last night! Thanks to book friend Nanquan 99 for the reward and high evaluation of this book, thank you very much!

  (end of this chapter)