The Son of Finance of the Great Age

  Chapter 940 Deutsche Bank accident

   Washington.

  Eric Ben Artez sat on a bench outside an SEC office, his heart was peaceful, and the noisy environment around him didn't affect him at all.

   As the chief risk officer of Deutsche Bank's US division, he has just resigned from Deutsche Bank. While the market was still speculating about his next move, he quietly appeared in Washington, the headquarters of the SEC.

  At this time, he kept thinking of a mysterious phone call a few days ago in his mind.

   "Mr. Eric?"

  It was a bright afternoon, Eric was monitoring the positions of the traders, a phone call from an undisclosed number called his phone, "Do you have time to chat?"

  Intuition told him that this call was very important. So despite the busy work, he still asked patiently: "I'm Eric, who are you, what can I do for you?"

   "It's not convenient to talk here, you'd better leave the company."

The voice, whose gender could not be discerned, was obviously treated specially, and continued, "Three blocks north of the headquarters of Deutsche Bank, there is a public telephone booth numbered 8745, and you will have a telephone there. Contacted you. Of course, you don’t have to listen to this call, but think about the interest rate manipulation case, don’t be a scapegoat for nothing.”

  Hearing this, Eric felt a chill in his heart.

  The interest rate manipulation case that broke out in Europe is now intensifying. In addition to the Barclays Bank that broke out first, several large banks such as UBS and Deutsche Bank have been involved in it one after another. The SEC's attitude is very firm, it just wants to give these large consortiums a little color. With the deepening of the investigation, some shocking inside stories were gradually exposed.

   There is no doubt that there is indeed an alliance of traders of the big banks to jointly manipulate the US dollar interest rate of LIBOR.

  Under the pressure of public opinion and judicial pressure, the top management of Deutsche Bank couldn't stand it anymore. There is now a rumor circulating within Deutsche Bank that Deutsche Bank will settle with the SEC for $2 billion and fire all traders it deals with.

  Eric is very clear that the actions of these traders are definitely not their own initiative. If their superiors or even the senior management of Deutsche Bank are completely unaware of this matter, the possibility is almost equal to zero. In other words, Deutsche Bank's act of firing these traders is to throw the blame for the whole matter to them.

   For these traders, this outcome is extremely tragic, meaning that their reputation in the industry is completely destroyed, and they can never find the same job again. Naturally, this treatment is also unfair, because they did not act without authorization. But sadly, they have absolutely no proof of their innocence, and even if they did, it wouldn't help.

  The cunning rabbit is dead and running dog cooking.

   Not to mention the chief risk officer, even the CEO is just a counter-agent in front of the company's interests, and will never show any affection when it is time to abandon it.

   As soon as he thought of the other party hinting at himself in this way, Eric couldn't sit still. He hurriedly took a leave of absence and left the company without telling anyone.

  Although he has no doubts about the handling of Deutsche Bank or even other companies, it does not mean that he can accept this solution. In fact, he has always had a feeling of "sorrow for the death of the rabbit and the fox", because he knows very well that one day he may also become the protagonist of similar incidents.

"Jingle Bell…"

   Not long after finding phone booth No. 8745, the public phone rang without warning. For some reason, Eric felt a little nervous. Now the plot is developing more and more like a spy movie, and he is the leading actor.

   Looking around the bustling crowd in a panic, he found that people didn't seem to notice the ringing of the phone booth, and even if they did, they just glanced at it and continued their hurried steps. Although it is rare for a payphone to ring, it does not attract attention.

  He couldn't help but breathe a sigh of relief, pretending to step into the phone booth unintentionally, and shut the door tightly with a "bang".

   "I'm Eric!"

  He reported his family background, "What's the matter with you? You can't talk on the mobile phone, so you have to talk here?"

   "Your phone is not safe. I can't guarantee that there is no eavesdropping. So for safety's sake, it's better to use a public phone. It's better for everyone."

  This time a clear male voice sounded, not the voice change just now, which made Eric stunned, "As the chief risk officer of Deutsche Bank, I think you should be familiar with the term leveraged ultra-advanced trading?"

"what are you saying?"

  Eric was flustered for a while, but he quickly stabilized his mood, and asked back pretending to be puzzled, "What is a super-advanced leveraged transaction? Sir, I don't understand what you are talking about."

  But in his heart, there was a stormy sea.

   "It seems that you don't seem to trust me very much!"

  The voice did not become emotional because of Eric's denial, but after a chuckle, he explained slowly, "Since you don't know the term, let me explain it."

"The so-called super-advanced refers to CDOs with a rating of more than AAA. For these CDS with an interest rate of only a dozen basis points, neither investors nor rating agencies are interested, because they have low risks and low returns. Almost equal to Assets with no risk and no return. Even if the subprime mortgage crisis breaks out, because there is a large buffer of sub-level assets, these ultra-high-end CDS will not suffer losses.”

"Bundling AAA, super A and super senior CDO together, because the credit rating is very high, it can be made into a highly leveraged wealth management product. This is the so-called leveraged super senior transaction. I don't know how many times the specific leverage is. But it will certainly not be less than ten times that of traders. And Deutsche Bank is a big player in this market. It is said that your accumulated ultra-advanced trading positions account for 60% of the total market share. Am I right about this?"

"With such a large share, Deutsche Bank has at least hundreds of billions of dollars of super-advanced CDO assets on hand. With such a large asset, I believe Deutsche Bank must have done risk hedging. CDX or S&P put options should be used to hedge these assets. The best target for risk. But it seems that in terms of the amount of hedging, the financial statements released by Deutsche Bank do not truly reflect all of this, right?"

   "How did he know this?"

After hearing what the other party said, Eric's thoughts changed sharply, and he thought to himself, "He's not wrong about what he said about leveraged ultra-advanced trading. But for Wall Street bond traders, everyone knows about it. However, not many people know about the unequal amount of our internal hedging, but it is not reflected in the financial statements, how does this guy know?"

   These transactions have been approved by him, and he knows the specific figures very well, so he knows the inside information.

   "Are you now wondering, why do I know all this?"

The voice understood his thoughts very well, and said lightly, "Of course it was told to me by your own people, and there are more than one sources of information. I only confirmed that Deutsche Bank had done so in the financial statements after multiple confirmations. hands and feet."

"What do you want?"

   Sure enough, it was revealed by an insider. At this moment, Eric didn't have the heart to find out who leaked the secret, but asked nervously, "Call me out, you don't just want to say these things, do you?"

  He knew very well that since the other party asked him to come out, he wouldn't just say these things. Nothing is easy in this world, and this one is no exception.

   "Do you remember what I said back then? Think about the traders involved in the interest rate manipulation case, I don't want their today to be your tomorrow!"

The voice finally bared its fangs, "You can believe that I am persuading in good faith, or it can be understood as malicious coercion. But what I want to say is that I hope you can turn your back on the dark and turn to the bright, and report Deutsche Bank to the SEC as soon as possible. Things about fake accounts."

   "What if I don't?"

Eric said without hesitation, "Aside from being fired by Deutsche Bank as a scapegoat and I can't get along in this business, what else can I get? You know, even if these things are revealed, I'm afraid I don't have much It’s a good thing, I’ll be notorious by then, and I’m afraid I won’t be able to hang around on Wall Street anymore.”

   "No matter what, you will not continue to hang around on Wall Street."

The voice sneered, laughing so hard that Eric's hair was on the verge of death, "This is a fact that cannot be changed. Let me tell you frankly that even if you don't agree, some of your colleagues will come forward and expose this matter. So If you can take the initiative to stand up, not only will you gain an honest reputation, but you will also get an additional reward of 10 million US dollars. Of course, there will be rewards from the SEC, you know this. But if you don’t take the initiative to stand up, yes You should know the consequences, think about it carefully."

   "$10 million?"

  Eric gasped and hung up the phone silently.

  Currently Eric's life is not very satisfactory, his wife is divorcing him, and there will be a high amount of child support waiting for him to pay in the future. According to the other party, Deutsche Bank seems to be unable to hide it anymore, and what awaits him will be the fate of being kicked out. Once he can't continue his career on Wall Street, I'm afraid he won't even be able to pay for the support of his wife and children.

  Thinking didn't last long. On a stormy night, Eric, who woke up from a nightmare, gritted his teeth and made a final decision.

   Soon he chose to resign voluntarily.

   "Mr. Eric Ben Atz, who is it?"

At this moment, a sweet female voice interrupted Eric's contemplation. He raised his head and looked at the speaker in confusion. It was a blonde with a voluptuous figure, and she was looking at the waiting outside the door with a smile. People, asked again softly, "Is Mr. Artez here? Now it's your turn!"

  Heaved a sigh of relief, Eric stood up, buttoned his suit, and strode into the office of the SEC reporting office under the leadership of the secretary.

   "My name is Eric Ben Artez, and I used to be the chief risk officer of Deutsche Bank."

Facing a half-white-haired reception committee member and a female clerk, Eric first reported his family background, and then solemnly said, "I am here to report to the SEC that Deutsche Bank has illegally disclosed financial information. According to As far as I know, they falsely reported the real situation of some positions in 2008. According to the federal law, they are suspected of making false accounts.”

   "Damn, this is the third time this month, and it's all about Deutsche Bank."

  The member wearing presbyopic glasses cursed in a low voice, then raised his head in surprise, and asked loudly, "Deutsche Bank has falsely reported its positions and is suspected of making false accounts? Mr. Artez, do you have evidence?"

  It was only then that he discovered that these three reported incidents were all about Deutsche Bank's fraudulent accounts. At this moment, the member suddenly realized that maybe Deutsche Bank really had a major problem.

   "Yes, Mr. Commissioner, I have definite evidence!"

  Eric, who had been prepared for a long time, unhurriedly took out a thick stack of documents from his briefcase, "It's all here..."

  The face of the half-white-haired committee member suddenly changed, and he understood the seriousness of the situation.

  …

   Not long after, the news that Deutsche Bank was suspected of whitewashing its financial statements during the financial crisis came out, and public opinion all over the world was in an uproar. Along with this incident, Deutsche Bank's stocks around the world also fell to varying degrees.

   Thanks to atuzai-zwb, Lao Nafahao Takong, Quan Quanmao, Xia Yangyang, angel-steel and other book friends who voted monthly! Thanks for the book friend Yiran's victory and apo11o's reward! Thank you very much for the strong support of all book friends, let the author see the hope of improving his grades, and hope to get the support of more book friends, thank you very much~

  (end of this chapter)