Reinventing the Millennium.

Chapter 756 Gloves (Two in One)

Flying from Houston to San Francisco, the two sides seem to be two worlds.

The sound of whistles, dribbles, and cheers all disappeared from my ears, replaced by brightly lit offices and dense statistical files.

Fang Zhuo arrived in Silicon Valley at noon. The first thing he did after lunch was not to inspect Yike’s R&D center here, but to use his office to hold a small meeting with Kong Yu, the director of the MIGA Fund who came from New York. .

Since MIGA Fund and Goldman Sachs went online, it can be said that pigs have made rapid progress. They not only helped the cooperative banks package CDO shipments, but also tried to issue a CDO security in the name of the institution.

During this process, MIGA Fund was proud of it and made a lot of profits.

However, as the person in charge, Kong Yu lost more and more hair.

Especially after receiving Mr. Fang's secret order to backdoor and find shells in other parts of the world, he suffered from insomnia continuously. One was worried about the financial market, the other was worried about the MIGA Fund, and the third was worried about himself...

From the project manager who walked into the Hang Lung 23 office with a gasoline can at the beginning, to the fund president who is quite famous on Wall Street today, Kong Yu has gained a lot in this process, but he feels more and more that it is not his own ability that has reached this point, but rather It was lifted to its current position by the development of the market and certain forces.

Knowing too much is not a good thing.

Kong Yu was a little worried that Mr. Fang let himself know too much.

Therefore, he took the initiative to come from New York this trip. He originally planned to take advantage of Fang Zong's team's victory and go to Houston, but he didn't expect to come to Silicon Valley after the phone call.

"The profit is good, but Goldman Sachs is still aggressive, which is enough to open a new factory for Bingxin."

Fang Zhuo read the report from the MIGA Fund, paid attention to several key data, and praised it.

Then, he put down the document, looked up at Kong Yu, and asked, "Mr. Kong, why are your eyes so red?"

Kong Yu smiled wryly and said, "It's a bit stressful."

He came here today to report on the market situation again, and to see the attitude of the boss.

I chatted once in the capital before, but now I have to chat again.

After Kong Yu said this, he paid attention to Mr. Fang's expression, and he didn't see any surprise as expected, as if the other party knew the purpose of his trip.

"Add some tea." Fang Zhuo signaled Mr. Kong to pour tea for him, and then threw a cigarette, "Tell me about the situation."

Kong Yu finished pouring tea and lit a cigarette, feeling much more at ease for some reason.

He took two puffs, smoothed his thoughts, and started from Goldman Sachs: "Mr. Fang, there is a very important situation. Goldman Sachs seems to have a lot of illegal operations on CDO."

Fang Zhuo nodded slightly, indicating that he was listening.

"Because we have been cooperating well with Washington Mutual Bank, considering the market was very good in April, I asked the foundation to package some not-so-high-quality loans from several banks to make CDOs, and then named them as Washington Mutual Bank. To sell in name."

"In the process, I found out that Goldman Sachs might be doing something similar."

Fang Zhuo interrupted: "It sounds legal and compliant."

Kong Yu shook his head and said, "No, our CDOs, whether Washington Mutual or MIGA Fund, are very formal and have fulfilled their duty of disclosure, but the CDOs that Goldman Sachs used to enter the market in its name..."

He first explained his motivation: "Because what Goldman Sachs is doing has some competition with us, I want to find out if I can cooperate with Goldman Sachs in the future and issue CDOs in the name of Goldman Sachs. The CDO later found out that what was packaged in it was the rubbish of the rubbish."

"There are no loans from big banks at all. They are basically small local banks and small financial institutions, such as Franklin Bank of California. Its real estate loan only requires a down payment of 7%, and nearly 4% of the loans are interest first. Borrowers have huge final payments after a few years."

"There's a huge bubble in there, and CDOs are a mix of bubbles and bubbles."

Kong Yu finally said solemnly: "And Goldman Sachs has concealed the information of the other party that issued CDOs with it, and they are shorting CDOs after issuing CDOs there! In other words, they are deliberately creating CDOs that will definitely cause problems to achieve short selling. Effect."

Fang Zhuo took a sip of tea, this tea is not bad.

Seeing that Fang Zhuo was silent, Kong Yu expressed his opinion: "This is definitely an act of defrauding investors, and it definitely violates the relevant regulations of the SEC!"

"It's against the law," he said emphatically.

Fang Zhuo thought about it, and said slowly: "So? Should we cooperate with Goldman Sachs or not?"

Kong Yu: "..."

He reiterated: "President Fang, Goldman Sachs violated the law, especially if this type of CDO breaks out, there may be serious consequences, which in turn will lead to a severe investigation of Goldman Sachs' violations."

Fang Zhuo nodded: "Goldman Sachs made a mistake."

Just as Kong Yu was about to agree, he suddenly realized the meaning contained in Mr. Fang's words. For Goldman Sachs, the consequences of making mistakes are more serious than breaking the law.

He was silent for a long time before recovering, hesitated for a few seconds, and said, "Mr. Fang, I suspect that Goldman Sachs is buying the CDS of its own CDO for risk hedging or trying to make a profit."

"Really? The operation of Goldman Sachs after eating before eating is too exciting." Fang Zhuo said lightly, "So, Mr. Kong, what is your suggestion for MIGA Fund?"

Kong Yu was stunned.

Today, he wanted to use his strong judgment on Goldman Sachs to see his boss's attitude towards him.

It stands to reason that the two should have an in-depth discussion and even find someone to verify Goldman Sachs' operations. Although it is strictly confidential, there is no impenetrable wall in the world. Even if you search secretly, you can find traces. It will be easier for Mr. Fang to take action .

However, Mr. Fang asked what should the MIGA fund do...

What should we do?

CDO should still be sold, right? CDS can also be bought and bought. Even if a default occurs, it is probably only a local area, which will cause market fluctuations.

Kong Yu's thoughts came to this point, but there was a strong sense of uneasiness.

Can judgments involving the entire financial market be imagined?

Doesn't it seem too aggressive to put the risk of certain CDO bubbles and CDS defaults into the whole system?
Kong Yu wanted to say that the MIGA Fund should proceed cautiously as usual, but he always felt that there was a danger coming, but the direction of the danger was absurd based on common sense.

He was speechless for a while.

"What's the name of the institution that cooperates with Goldman Sachs to issue CDO securities?" Fang Zhuo asked something specific.

"Copper Capital." Kong Yu replied.

Fang Zhuo recalled carefully, but he didn’t have any impression, but it didn’t matter, it was enough for him to have an impression of John Paulson, the prototype of “The Big Short”.

This Copper Capital is doing the same thing as John Paulson, who is also working with Goldman Sachs.

It seems that Goldman Sachs has been doing a lot of things secretly.

John Paulson took advantage of the subprime mortgage crisis to carry out short-selling operations, making profits of more than 200 billion US dollars before and after.

He personally harvested billions, and most of them were distributed by various organizations.

I believe that Goldman Sachs is also a part of this.

Regarding the subprime mortgage crisis this time, considering the bad reputation of short selling, the overt and covert influence, and considering that Bingxin still has obstacles in purchasing equipment and introducing technology, Fang Zhuo believes that it is necessary to keep silent while ensuring its own safety. Earn some equipment money and bargain money.

John Paulson up front would make a good glove.

How many people know John, how many people know Goldman Sachs, how many clients know John Fund?

In order to be safe, funds need to be transferred several times through channels around the world.

This is exactly the order Fang Zhuo gave Kong Yu.

In addition, you can also see which companies in need can take the opportunity to short.

Fang Zhuo plans to install some acceleration plug-ins for Bingxin and Yike this time.

There was silence in the office, but the mood of the two people's silence was different.

Kong Yu already had some fear.

"After the products of the MIGA Fund are delivered one after another, you can stop for a while to see how much money is available." Fang Zhuo drank his tea to the bottom, and made a decision that shocked Kong Yu.

"Mr. Fang, we have a lot of high-quality stocks and equity, and we will lose money if we stop." Kong Yu said.

"Aren't you coming to me today because you are worried about the bubble in the market?" Fang Zhuo pointed out, "Or, you don't trust your own judgment? There are huge risks in the US financial market?"

Kong Yu didn't actually say this, but he had such thoughts in his heart.

Originally, I haven't slept well for the past few days, but when I heard Mr. Fang say this, I suddenly felt a little dazed. Did I say something similar just now?
Fang Zhuo continued: "I think your judgment is very bold and sharp. No matter what the actual situation is, for us at this time, it is just more or less profit. It is not unacceptable to stop in time."

Say so.

But when thinking of the loss, Kong Yu still feels heartache.

Fang Zhuo thought for a while: "The MIGA fund is temporarily silent after the normal delivery, and the next step is how to let the funds safely short the market."

Kong Yu couldn't stop talking, he thought about it: "Mr. Fang, I may have been a bit rash in what I said just now, and there may be some problems with my judgment..."

Fang Zhuo said with emotion: "Mr. Kong, I can see how much preparation you have made for what you said today just by looking at your red eyes. I trust your judgment very much. I always feel that you, Mr. Kong, have a kind of ability in the market that others cannot match." Keen talent."

"The next work will not be particularly complicated, but special caution is required."

"What we have to do is short-selling in compliance, but we need to pay attention to covering up the whereabouts of funds."

Fang Zhuo does not intend to let Kong Yu handle the whole process, and different people will be responsible for different scales of funds.

But as a conscientious fund manager whose family members are all in Shanghai, Kong Yu, who is deeply trusted, will undoubtedly be responsible for the largest part of the funds.

When Kong Yu heard the decision from the boss, although he was still shocked, his original fear faded a lot.

Thoughts were intertwined in his mind, and he asked again: "Where are the Chinese concept stocks?"

"Sina keeps half of it, and the rest are treated equally." Fang Zhuo said, "Sina won't have any objections to normal financial operations."

Kong Yu nodded slightly. Regardless of whether he said anything about the risks of the financial market today, Mr. Fang actually already had his own judgment in his heart.

Fang Zhuo pondered again and said: "Add a few more layers of shells, earn money in Russia and the Middle East, find people from Europe to come to the United States, and remotely look for opportunities to cooperate with Goldman Sachs, just like the Copper Capital you just mentioned, Learn from it, issue CDOs on a small scale, do a little space, and make a little money.”

Paulson, the boss of Goldman Sachs, is about to be a referee, and the cooperation with Goldman Sachs has a very good prospect.

Even if Goldman errs, the punishment will come only after Paulson's tenure ends.

Big money is used to put wings on Bingxin and Yike, and small money can be used to buy Sony's building. The security is high enough, and it will not attract much attention afterwards because of the scale problem.

Kong Yu nodded silently.

The original intention today was to take a look at Mr. Fang's attitude, but suddenly there was a sharp turn for the MIGA Fund, and we still needed to digest this decision and the meaning behind it.

Fang Zhuo looked at Kong Yu's complicated expression and asked, "Mr. Kong, is there anything else that needs to be added?"

"Mr. Fang, I probably need to think again. My thoughts are a little messed up." Kong Yu said this, but his mind suddenly became clearer. Since Mr. Fang still needs to employ people and still trusts himself, if the US market really Systematic risk occurs, and the profits in it are beyond imagination.

He remembered Buffett's famous words.

Previously, seeing Goldman Sachs' greed frightened him, but now that the fear has passed, it's time for him to be greedy.

"Okay, don't go back to New York these few days. If there is any place to check and make up for gaps to facilitate communication, you should also pay attention to communication tools." Fang Zhuo said calmly, "You should be separated by a few floors, although there should be no personal danger. , but also a little attention."

Kong Yu nodded solemnly.

Soon, he left the office and needed to go back and sort out his thoughts.

Fang Zhuo picked up the file again, and after looking it over, he took out another file from the drawer to report. He was very pleased to find that Kong Yu's behavior was becoming more and more mature. regulation.

Some documents were destroyed and some documents remained.

The office drawers are locked.

Soon, matters concerning the MIGA fund were put aside, and teams from Qualcomm and Google arrived one after another in the afternoon.

There were not many people from Qualcomm, including the vice president who went to the stadium to watch the game last time, there were only 3 people in total.

Google paid more attention to it. Not only the founder Larry came here in person, but also the CEO Eric also took people to sit in Yike's R&D center.

After communicating with Larry, Eric thought that he didn't need to come and participate in this kind of mobile phone cooperation discussion.

But a new piece of news changed his mind.

Sony rejected Google's acquisition of its Android shares, and this part fell into the hands of Fang Zhuo unexpectedly and reasonably. After all, this person has a close relationship with Sony.

Considering the significance of the existence of Android, Eric wants to talk about Google's strong acquisition intention by the way. The rest is concentrated in the hands of Fang Zhuo, who may be able to acquire it at a high price.

Fang Zhuo's appetite may be bigger than Sony's, but after all, there is a price that can be impressed, right?

Eric thinks that it is a good opportunity to communicate when talking about the cooperation of the first mobile phone in the Android camp.

(End of this chapter)