Reinventing the Millennium.

Chapter 772 Shorting Yike (Two in One)

The NYE charity dinner was a great success.

Singers sang, charity auctions, big bosses gave speeches.

Also, the MIGA Fund has received a lot of investment and investment intentions.

When Rubin, Summers, and Geithner stood beside the rich in the East, it was hard for everyone not to have confidence in the MIGA Fund.

Confidence is more precious than gold at certain moments. It can not only allow the smooth flow of green dollars into fund accounts, but also make the behemoths of Wall Street lose their liquidity by being run on.

Fang Zhuo didn't give a speech on stage, and didn't take the initiative to show his presence at the dinner, but except for Fuld, who was a little unhappy, everyone was deeply impressed by this smiling oriental man.

Rumors are wrong, his personality does not seem to be as violent as in the stadium, but rather typical oriental humility.

At 278 o'clock in the middle of the night, the charity dinner was completely over, and a total of [-] million US dollars of charity funds were auctioned.

It was not until the early hours of the morning that Fang Zhuo got rid of the flowers and was finally able to sit in the room and review the list of companies submitted by Kong Yu.

This is another small task entrusted to Mr. Kong to see what high-quality semiconductor-related and mobile phone upstream and downstream American companies are there.

"If there is really an economic crisis in the US market, then I will lend a helping hand to some high-quality companies."

This is exactly what Kong Yu heard from Mr. Fang. At present, he is listing companies in the United States, and it will take a little time to analyze the European market—mainly considering that the parent companies of some related subsidiaries are involved in the financial business. risks of.

The room was quiet, only the faint scent of tea.

Kong Yu looked at Mr. Fang who was focused, as if a crocodile sizing up food appeared in front of him, and as soon as the selection was completed, he would go up and roll to death.

He sat on the sofa and thought wildly, one was about what happened tonight, and the other was about the handling process.

"Apple acquired a company called Proximity this year, which focuses on media management and workflow systems. Tsk, Apple's vision has always been excellent."

Kong Yu's thoughts were interrupted by Mr. Fang's admiration to himself, and he quickly leaned over to refill the boss with some tea.

Fang Zhuo put down the document in his hand, picked up another one, flipped through two pages, and stacked them together on the coffee table after reading.

Then, he looked at Kong Yu and said with a smile: "How much does Boss Kong earn tonight? How do you feel?"

Kong Yu lifted his spirits, and replied: "The investment of nearly 7000 million yuan has been finalized, and there are many more to be discussed later."

Fang Zhuo nodded and made a joke: "0.7 million in one night, 7 million after ten games, and 70 billion after [-] games, this business is okay."

Kong Yu laughed, knowing that it would be difficult to have many NYE charity dinners where Summers and Rubin were invited.

After hesitating for a moment, he said, "Tonight, um, Lehman's Fuld is quite...beyond my imagination."

Fang Zhuo was at a loss for this word for two seconds, and then wondered: "What imagination? The imagination of Wall Street giants? You think they have to have a cigar in a circle when they talk about things, and they must call the British ancestors. Talk about noble blood?"

Kong Yu let out an "uh". Even though he often comes into contact with Wall Street elites, it is very rare for leaders at Fuld's level to face each other like this, and he even retorted impassionedly.

Fang Zhuo said disapprovingly: "Didn't you meet Paulson before? This group of people act like this. It's good that they didn't lift up their clothes to show you his strong muscles."

Kong Yu had no choice but to tell the truth: "Mr. Fang, when I was in Shencheng, I admired Fuld, the head of Lehman..."

Fang Zhuo was stunned for a moment, oh, what is this?
Is it the disillusionment of the idol or the excitement of meeting the idol live?

He was silent for a while, and comforted: "It's okay, Boss Kong, you have matured, now you have the opportunity to kill him yourself."

Kong Yu laughed at Mr. Fang's joke again.

"Mr. Kong, don't use filters. Fuld may not be as strong as your business ability. However, you can't do big profits such as teaming up to amend the law, breaking the bottom line, and passing on risks. Naturally, you can't run Lehman." Fang Zhuo comforted again.

Kong Yu hesitated, I'm not strong enough, because I'm a good person?
I can only argue a few words, the real recruiter must be Mr. Fang himself.

"But there are still hidden dangers in the accumulation of these things, so..." Fang Zhuo heuristically elongated his voice.

Kong Yu pondered: "So, our MIGA Fund must avoid hidden dangers."

Fang Zhuo frowned: "So, this time we will eat the biggest portion!"

Feeling the dissatisfaction of the boss, Kong Yu immediately reported: "I have contacted the short-seller John Paulson. He is now raising funds to build a short-short CDO fund, but... it seems that he is in a state of loss. .”

He added: "The CDO market is very prosperous now, even if there are junk bonds, it will not affect the mainstream trend."

"The Federal Reserve raised interest rates, the real estate market has changed, and the CDO boom is about to lose its foundation. Don't hesitate, John will raise as much money as he wants." Fang Zhuo gave a clear order, and the funding channels are arranged. superior.

Kong Yu swallowed, and nodded solemnly.

The MIGA Fund is orderly delivering profits, gathering funds, and absorbing funds, but the investment in John Paulson is still the first firm signal that profits should not be placed on the books, but should be invested in short-selling.

Kong Yu digested Mr. Fang's attitude, and when he said goodbye, he felt the excitement of a minority.

Fang Zhuo did not have the mood of a gasoline hole. After highlighting a few companies on the list and intending to let people look up the detailed information, he considered the first proposition of the NYSE.

Summers is the chief economic adviser of the New York Economic Institute, and Rubin is the chief adviser. The latter is now mainly an executive of Citigroup, and he is only a temporary post here.

I thought Teacher Xiao Sa would just collect the money and stand on the platform, but I didn't expect him to seem a little serious about coming.

At the end of the dinner, Fang Zhuo was stopped by Mr. Sa and asked a question about the direction of the institute.

Suddenly being asked this way, Fang Zhuo didn't answer immediately even though he was surprised that this person still had a certain amount of money to do things.

Now that all the hustle and bustle has subsided in the wee hours of the morning, the answer to this little question becomes clearer.

If Mr. Sa can be tied more deeply, then the direction of the New York Institute is to actively and legitimately advocate globalization, and what is in line with the rules is not limited to lobbying and other methods to maintain the benefits obtained in the process of globalization.

Including Yike and Bingxin, not only they must actively take advantage of the development convenience brought by the era of globalization, make full use of the resources of all parties, and grow as fast as possible. I want you to have me, and I have you, so If it can bring more decoupling pain someday in the future, then there will be more trade-offs.

At the very least, if the NYE can maintain and develop, the difficulty for ice core to continue to obtain authorization for equipment purchase and technology introduction will drop several layers.

Fang Zhuo considered how to "advantage" the situation and strengthen the overall label of "New York Economics Institute".

In the blink of an eye, the next day, he gave Kong Yu a new order to register a clean "New York Economic and Social Development Foundation" and let it be attached to the research institute. The first batch of funds came from Geithner and others. Still invest according to the plan, and wait until the profit is seen before making the overall investment in the name of the foundation.

After Fang Zhuo received Kong Yu's reply, he calmly went to the restaurant to taste the breakfast standard of this famous hotel.

However, when the secretary bought today's latest newspaper, and he was about to see how the "New York Times" would brag about house prices, Susan, the director of Northern Trust, slowly walked over.

Both the secretary and the assistant made room for conversation.

After saying hello, Susan complained, "Mr. Fang, there is something I want to criticize you for."

Fang Zhuo turned his head, not knowing her intention: "Oh?"

"My son has a good team and played hard. You poached the head coach of the team overnight!" Susan accused with a smile.

Fang Zhuo was slightly startled: "Is he studying at Brown University?"

The previous big uncle of Xiao Ao, his last job was the team coach of Brown University.

Fang Zhuo knew that Xiao Ao had a close relationship with the Northern Trust, but he didn't expect this Susan to use such gentle social methods.

Huh?Thinking about it a little bit more, why did my uncle suddenly become the head coach of the college team, and Susan might be behind it.

Susan nodded and said, "Boss Fang, if you recruit Robinson to the Rockets, my son's playing time will not be guaranteed. He likes basketball very much."

Fang Zhuo laughed: "People who work hard will shine sooner or later. Robinson came to our team to form a development league team. If your son still maintains his interest in basketball in the future, he can come to Houston to try."

"Then I would like to thank the most famous basketball owner in the United States first." Susan complimented slightly, her son really likes basketball, and it would be good to give him multiple choices.

The two laughed tacitly and chatted a few words about the team, and then Susan first transferred to the MIGA fund. The investment threshold she heard on the phone earlier was 1000 million US dollars, which was a bit high at the time, but she didn’t feel it at all after last night up.

Now she is only curious about the profitability of the MIGA Fund. Trustees have always been professionally cautious and responsible for their clients' funds.

Faced with this rather direct question, Fang Zhuo said vaguely: "The CDO market is very prosperous, and MIGA Fund has accumulated a lot of experience in the process of cooperating with Deutsche Bank and Bank of Washington. The situation is also clearer.”

The CDO market was booming, boom to boom and bust.

The MIGA fund has accumulated a lot of experience, and now it is cutting off dangerous partners.

We are relatively clear about the situation of the two houses, and its sub-debt problem has reached a serious level.

Fang Zhuo did not reveal to Susan that he planned to sell short. This decision was kept secret to the extent that only President Geithnergay knew to start with CDS. As for other short-selling methods that may be involved, they can all be hidden under CDS, hidden under the big short John Under Paulson.

The two houses in the United States refer to the two major mortgage institutions "Fannie Mae" and "Freddie Mac". They are an important part of the national housing policy and the pillar of the real estate market.

According to the information disclosed last year, the real estate loans underwritten or purchased by the two institutions exceeded 60% of the US resident real estate market. I don’t know the situation this year, but the proportion is definitely higher.

There is no doubt that the two houses in the subprime debt crisis were definitely hit hard.

There is no doubt that the appropriate shorting of the two rooms can make amazing profits.

This is another line of profit-seeking for MIGA funds.

Susan thinks she understands. Mr. Fang is using the influence of Summers, Rubin, and Geithner to use funds to obtain mortgage loans with suitable risks from the two companies, and then issue CDOs like Lehman and Goldman Sachs. securities.

This is also how the first-tier players in the market play.

However, the MIGA Fund needs to wrap up more capital and contacts to complete such an offering.

Susan nodded with a smile, and did not continue to ask, but said: "If Xiao Ao did not want to invest, I am afraid I would have missed such an excellent MIGA fund in the market. Our Northern Trust has certain requirements for foreign investment. I am just like Xiao Ao. Invest some, and use the budget in the trust to invest some."

She pondered for a moment before deciding on the number: "My personal 500 million is with Xiao Ao's, and the trust will take another 1500 million."

Personally, together with Xiao Ao, I will invest wherever your MIGA fund invests with Xiao Ao's money. As for the trust, it follows the internal operating rules of the MIGA fund.

This is the other party's trust in investing in Xiao Ao with the MIGA fund, and the trust in Sa, Lu, and Gai. You can't lose Xiao Ao and their money, right?
Fang Zhuo understood what Susan meant, and said with a smile: "A wise choice, MIGA Fund puts the interests of customers first, and will never let the trust's investment lose money."

Susan likes such a statement, and by the way, she told a gossip.

Phipps, the vice president of Bessemer Securities who was present last night, is said to be the illegitimate son of the Bessemer trust family and has a blood relationship.

The operation of Bessemer Trust has always been conservative, but the securities market has been too hot recently, and this is how the risk-isolated Bessemer Securities Company was born.

In other words, even though Phipps is just a vice president, he has much more decision-making power than normal.

Fang Zhuo thanked Susan for the information and knew that this was also a worthy partner.

……

When Mr. Fang was wooing clients and raising funds on the eve of the subprime debt crisis, Lehman's head, Fuld, was not idle.

He returned home early after attending the New York Institute's charity dinner.

The next morning, after Fuld finished handling the company's affairs, he sat in the office and saw the information that he had ordered. There are two main funds of Oriental Regal in the United States, one is Yike, a listed company, and the other is MIGA funds.

Frowning, Fuld read the situation of MIGA funds and found that the information was very opaque.

Considering the more or less inclinations of Sa, Lu, and Gaina last night, he put down the fund's documents and picked up Yi Ke's materials.

This look does have some useful information.

Yike Company, a listed company, announced a major shareholder reduction plan a while ago, which attracted the attention of some financial institutions, including Lehman's subordinate departments. present.

Regarding Yike, its financial report has always been good, but it is not without problems.

For a long time, the prospect of the Chinese market in the East has been one direction of Yike, but since its listing, Yike seems unable to solve the fierce competition in the Chinese market, nor is it able to promote the change of market rules.

In addition, the music player is facing a new pressure. With the information disclosed by Apple, it is a matter of course that the mobile phone it confirms will be equipped with music software.

And, the Sony and Bertelsmann mergers and acquisitions of music companies that Yike participated in are also in the overall downturn of the recording industry.

At this time, the reduction of holdings by the chairman and major shareholder of Yike seems to be a high-level move, and the so-called mobile phone plan is not optimistic.

Fuld agreed with the analysis in the document, and conveniently gave a decision to remind clients to make wise investments based on market conditions—short Yike.

(End of this chapter)