The Son of Finance of the Great Age

  Chapter 603 Self-help

   "Damn, what are we going to do?"

  Since the Korean negotiations broke down, Dick Foud has been anxious like an ant on a hot pot, looking for help every day, but the results are minimal. When the second quarter report was released, the entire Leimen Brothers fell into a desperate mood, and the stock market suffered a severe setback, which made it impossible for them to raise funds through the stock market. In this case, the entire senior management of Raymond Brothers was sitting on pins and needles, and Dick Foud was even more so.

   "If my resignation can alleviate the company's difficulties, I don't mind leaving immediately!" Facing a full board of directors, Dick Ford said solemnly.

  Because of the recent situation of Leihman Brothers, investors called for a change of management. This embarrasses the current senior management of Leihman Brothers, especially Dick Foud, who is at the forefront of the storm, is the one who has been criticized the most. The emergency board meeting held this time is to discuss how to face such a situation.

  In fact, Dick Foud didn't really intend to resign. He just wanted to test the opinions of other members of the board of directors through this meeting.

   "No, you can't resign!"

  When Dick Foud's words came out, the expressions of the others changed immediately. In this case, the Raymond Brothers can do without anyone, but Dick Foud. To put it bluntly, Dick Foud, who has served for more than 40 years, is the symbol and spiritual pillar of Leimen Brothers. If he resigns at this time, the entire Leimen Brothers building may collapse immediately.

   There were voices of opposition and urgency in the meeting room, and there was only one central meaning: Dick Foud cannot resign.

After looking around, Dick Fude confirmed that he had achieved satisfactory results, and nodded, "Gentlemen, at this critical moment, I will not easily give up the company and career I have worked for my whole life. Although there are similar rumors, but I am sure that these rumors are nothing. All the work we have done so far is extremely effective and has a positive role in promoting Leimen Brothers. into a dangerous situation."

   Strictly speaking, Dick Foud's words are not evasive, and it is indeed the case. As an important underwriter in the market, Leimen Brothers, like other big investment banks, has a large number of subprime mortgage loans and related derivatives on hand. As soon as the subprime mortgage crisis broke out, these originally hot subprime bonds immediately turned into bombs that could kill people at any time, and this situation is very common among major investment banks. At least Dick Foud knows that including Stanley and Goodman. Companies are also in deep trouble. According to this line of thinking, they are not operational mistakes at all, but the crisis of the entire industry caused by the deterioration of the general environment.

   But these well-dressed people will never reflect on the fact that the subprime mortgage crisis that has led to today's situation is rooted in their deep-seated greed.

   Closer to home, after saying a few words of encouragement, Dick Foud realized that such words had no practical significance, and decisively changed the subject, "Everyone, is there any good way to deal with the current situation?"

   After all, these empty words cannot solve the problem. In the end, everyone still has to continue to think of ways to see how they can raise funds from the market.

   It must be explained that due to the particularity of the industry, the source of funds in the investment banking industry is very different from other financial institutions. The source of funds for commercial banks is to absorb users' savings, insurance institutions for insurance funds, and funds for clients' funds, while investment banks have very little funds of their own, and usually borrow funds from peers to satisfy their own liquidity . In order to maximize profits, they can invest all their funds in investments, such as stocks, bonds and other profitable targets.

   It has to be said that this model can maximize the use of funds, but because of the lack of liquidity, it also has considerable dangers. However, before the subprime debt crisis, this risk was almost negligible, because the funds borrowed by investment banks can come from all over the world. Even if the inter-U.S. market is not easy to borrow, they can go to the Eurodollar market or the Asian dollar market. And when there is a worldwide panic about investment banks, this danger is magnified to the extreme. Just like Bear Stearns, once liquidity is lacking, it cannot even last a trading day.

"South Korea, you can start negotiations again!" Mark Shafier turned the pen in his hand with a slightly embarrassed expression. After all, he was also responsible for the failure of this deal. Contact, because they can't make the decision at all. If we want to restart the negotiation, we must ask Zhao Jianhao to invite heavyweights."

"Also, we have to fight back about the rumors in the market!" Irene Cullen said with a straight face, "I have to bear certain responsibilities for David Einhorn's remarks. This guy Hidden evil intentions, hard to guard against, I accidentally fell into his trap, which brought a negative impact on the company's fundamentals. However, if the real loss situation is disclosed, I am afraid that the situation will get worse."

"There is also General Electric. Their chief financial officer said that because of the poor performance in the second quarter, the company does not have much liquidity reserves and cannot help us!" Gregory, another director, said, "I I suspect that they are perfunctory, but this possibility is not ruled out. In short, this road should be hopeless!"

   Next, several directors expressed their views one after another. Although the rhetoric was not consistent, there was only one central idea, that is, there is currently no way to raise funds.

Listening blankly to the directors' reports on the fundraising one by one, Dick Fude felt helpless in his heart. He couldn't help but think that the other directors did not do their best. But what they can do is really limited at the moment. Bro no help. And at this time, he couldn't say anything depressing, because even he himself was helpless.

After finally waiting for everyone to report, he breathed a sigh of relief and said lightly: "Although the current situation is very bad, it is far from critical. But we cannot relax our vigilance because of this, we must do it in the shortest possible time It is not impossible to reverse the situation and transfer the company to someone else when necessary. In short, as long as Leimen Brothers can survive, everything else is secondary, understand?"

  Everyone nodded silently.

   "Okay, there is an important task for you two to stay!"

After the board meeting, Irene Karen and Mark Shafier were left behind by Dick Foud. When there were only the three of them in the huge meeting room, Dick Foud turned his face straight and said extremely seriously: "Guys, In fact, I have already received the acquisition intention, but in order to prevent the news from leaking, I did not announce it at the board meeting just now!"

   "Really?" Irene Karen's face twitched, and she said with difficulty after a while, "Dick, when did this happen?"

  Mark Shafier didn't say anything, but he leaned forward slightly, looking very interested.

   "Do you know who is attacking us from behind this time?" Dick Foud didn't answer the question, with an unfathomable expression on his face, "Also, do you know who leaked the secret of our negotiation in South Korea?"

  Irene Karen's face twitched rapidly again. After all, she was a woman, and it was inevitable that she would lose control of her expression in such a scene. Mark Shafier glanced at her suspiciously, then calculated silently in his heart, and then replied cautiously: "Dick, you are not doubting me and Irene, are you?"

"Of course not, otherwise I wouldn't have kept the two of you!" Dick Foud looked at the two of them meaningfully, and then said slowly, "Because of the existence of this traitor, we When doing many things, you must be extra careful so as not to leak the wind. After all, this time is different from ordinary commercial leaks. This will involve the life and death of the Leimen Brothers, so I have to be careful."

"Dick, what is the intention of the acquisition?" Dick Fude played on the mystery for a long time, but he didn't say anything about the acquisition. This made Irene Karen a little impatient. She asked anxiously, "The other party has How much sincerity? Is it to buy some of our shares or seek a controlling position?"

Perhaps aware of her gaffe, she quickly added: "Sorry, gentlemen, because it is related to our financial issues, I am a little impatient. In this case, if there is really an acquisition intention, we will The report must be made beautiful first, so that it can be sold at a good price.”

  Hearing her explanation, Dick Fodder and Mark Shafier both nodded in unison.

   "It's not someone else who proposed the acquisition this time, but XXX." After a moment of silence, Dick Ford said slowly.

"what?"

   "It's actually them?"

   This time Mark Shafier and Irene Karen yelled at the same time. There is no other reason, this news is a bit beyond their expectations.

  What needs to be explained here is that Blaylock is the most successful private equity company in the world, and its essence is an investment fund. The main operation mode is to invest in the company with capital, technology, management level and other factors before the company goes public, and to obtain income through the secondary market exit after the company goes public. Of course, due to the development of the financial market, the exit method is not limited to the secondary market.

  As the most successful and largest PE (Private Equity Fund) in the world, Blaylock has surpassed the nature of general PE, and has achieved the scale of assets that have been successfully listed. Huatou once bought part of the shares of Blaylock before listing, but it is a pity that due to the wrong timing of the investment, the premium obtained after listing was not obvious.

   In any case, Blaylock is still one of the financial giants with a reputation in the market. And if it really intends to acquire Raymond Brothers, although the scale of funds involved may not be too large, it will definitely be a big news that shakes the entire market, because it means that Blaylock has started to go downhill in the industry.

  PE occupies a relatively upstream position in the entire financial chain, and if the investment bank is integrated, then the minds of Blaylock's management will be clearly revealed. They want to integrate the entire industrial chain and become a giant that truly monopolizes the upstream and downstream.

   It was precisely because they wanted to understand the joints that Mark Shafier and Irene Karen were particularly shocked. However, they soon realized that although this news was enough to shock the market, it was definitely good for the current Leimen Brothers.

   The two sides looked at each other, and both could see the joy in each other's eyes.

Who knew that before they had time to digest the "good news", Dick Foud threw out another piece of news that shocked them, "Also, find a reporter you know and send me a piece of news, just say Merrill Lynch's financial situation is very bad now, even worse than that of Lehman Brothers."

While Mark Shafier and Irene Cullen were stunned, Dick Foud lay comfortably on the seat, and said Yoyo: "We can't let all the gunfire in the market be aimed at us, you should understand this truth !"

   Thanks to book friends Xingxiyuelang, Sky_Sword, Little Cow, tanding, and Flying Elf for voting monthly! Thank you book friend Xiao Qi for the miracle of civilization and my money for the reward! Seeing everyone's attention and expectations for this book, the author can't express his gratitude, touch and apology in his heart. He can only continue to work hard to write books in the future~ Although I don't know when this book will recover from the ruins after the war, I believe Dong Yu is dead, Sang Yu is not too late, everyone's continuous support is enough~

  (end of this chapter)