Reinventing the Millennium.

Chapter 973 With Greater Ability, Greater Responsibility (4K)

In the afternoon when Fang Zhuo arrived in Washington, it was drizzling.

New York is very close to Washington, so there was no delay in the landing of the private jet, but a slight delay from the airport to the hotel.

Along the way, Kong Yu, who came to pick him up, first talked about his observations on the European financial market, followed by the situation of Yike stock, and finally his participation in the disposal of toxic assets.

Geithner has been doing his best for the country since the outbreak of the financial crisis, and the disposal of toxic assets has long been outlined when he was the president of the New York Fed.

Now, the outline is clearer except for the details, and the main plan has not changed much.

It is still the 7000 billion that Xiaobu passed the bailout bill last year, and 1000 billion is used as official funds to bear 6% of the overall investment, and 84% of the cost is borne by the Federal Reserve Insurance Company, and the rest will be based on private capital. to bear the amount of investment.

Large quantities are preferred, and private capital only needs to bear 6% of the minimum loan cost.

That is to say, for a toxic asset worth 2000 million US dollars, if the winning bid is 1000 million US dollars, private capital can be included in the pocket as long as it takes out a minimum of 60 US dollars.

If this toxic asset still has an actual value of 2000 million U.S. dollars, and the profit margin is 1000 million U.S. dollars, private capital and administration will be divided in half, and 500 million U.S. dollars will be taken away.

That is, the investment is 60, and the final profit is 440 million.

This profit-making process needs to bear the risk of high or low toxicity of toxic assets, and this disposal plan is called a public-private partnership investment plan, or PPIP for short.

"Hey, I remember that when I heard about this disposal last time, the ratio of investment of 75 US dollars was still required. Now it is lower?" Fang Zhuo was quite surprised.

"The first batch should be like this. I don't know if there will be any changes in the future. They will be disposed of in batches." Kong Yu has been in Washington for a week. , it is preliminarily estimated that there will be more than a hundred competitors, and in the end about 10 will become partners of asset management companies.”

PPIP establishes an asset management company for dealing with toxic assets, and through this company cooperates with private capital.

Fang Zhuo asked, "Is there a problem with being shortlisted?"

"It's a green light." Kong Yu replied.

Later, he added: "The name of the new company we are establishing now is Financial Industry Investment Management Company. The MIGA fund has two layers of nesting, and there are companies recommended from there as shareholders."

Fang Zhuo nodded, as expected in the procedure.

This time I came to help, how to divide depends on the owner's intentions, I will not have any objections.

Kong Yu added: "Roughly speaking, we can get 3% of the profit."

In other words, with an investment of 60, the profit transferred is 132 million.

Fang Zhuo frowned, and raised his opinion: "It's a bit small, is that what Geithner meant?"

Kong Yu shook his head: "I didn't see Geithner, it was the result of communicating with shareholder Jack."

Fang Zhuo asked again: "This Jack?"

"I've checked, and my identity is very transparent. I have worked in investment banks such as Goldman Sachs." Kong Yu replied.

"I met Geithner that night and asked him again. After all, we also took risks." Fang Zhuo said.

Kong Yu is going to talk about this risky thing next.

He opened his mouth and waited for two seconds before continuing: "The first batch of shortlisted companies can first select some undervalued high-quality assets for combination, and a large part of assets will be mixed together for blind auction, and the highest price will win. "

Fang Zhuo listened quietly.

Kong Yu said euphemistically, "In principle, it's blind shooting."

Fang Zhuo waited for a while: "Yes."

Blind shooting is not blind, it is really simple and rude.

Now there may be a competition problem. How many companies have the same principle?

The shortlist is a threshold, the principle is a threshold, and the one with the highest price is also a threshold.

"In principle, we need to prepare US$5 million. The top priority is real estate mortgage debt CDOs in good locations. With the stimulus measures in place, these can bring more profits than planned." Kong Yu said, "Second , some credit cards and corporate business loans are also good.”

Fang Zhuo nodded, this is no problem.

Kong Yu continued to talk about relatively less critical content such as the loans of the Federal Deposit Insurance Corporation of the United States and term asset-backed securities loan facilities.

Disposal of toxic assets can be complex or simple.

This time, the MIGA Fund also fully complied with the procedures and was even welcomed to participate. The use of corporate vests was out of safety habits.

"Is there anything Washington needs to pay attention to?" Fang Zhuo was relieved of Kong Yu's continuous operation, and asked about the local situation.

"There seems to be something that needs special attention. Geithner is a big shot now." Kong Yu thought for a while, "I don't know who else will be there at night."

Fang Zhuo is the host tonight, but Geithner actually arranges the guests and hosts the scene.

From the New York Fed to the Treasury, which now determines the recovery of the financial crisis, Geithner is hot right now.

Fang Zhuo sighed: "Yes, they are all big shots now."

Geithner...they are all big names in the world.

At seven o'clock in the evening, the private banquet was held at the Fairfax Hotel, which was luxurious and elegant, quite in the elegant style of the golden age of the United States.

Fang Zhuo had already arrived earlier, but Geithner did not expect to arrive earlier.

It was said to be a small banquet, but Geithner actually invited quite a few guests, and nearly 20 people were well-known in their respective fields.

However, when Fang Zhuo arrived at the banquet hall, many people around Geithner consciously made way for the world's richest man.

"Mr. Fang, did Yi Ke encounter some trouble?" Geithner brought up Yi Ke after a brief greeting.

"Small problem." Fang Zhuo said concisely.

Geithner is not what he used to be, and he asked with concern: "Should I find someone to coordinate?"

Fang Zhuo frowned, and quickly considered the overall situation in his mind. From the current point of view, Nokia's attitude towards the trump card of the Android camp is still very firm, and this is also related to the open source of the Android system.

Seeing Mr. Fang groaning, Geithner suddenly said after waiting patiently for a while: "If you really need it, you can tell me again."

Fang Zhuo glanced at Geithner, um, this one seems to have a sense of smell.

"In terms of business, I'm definitely not as good as the second best president in the world. Come on, Mr. Fang, let me introduce you. This is Jack from Xianlian Asset Management Company, and he is also an outstanding financial elite." Geithner smiled Introduce the person next to Mr. Fang.

That's exactly Jack who represented Geithner's partnership with MIGA Fund.

Fang Zhuo shook hands with this man, and exchanged business cards and numbers.

"President Fang, this is Tony, the vice president of CGI Group." Geithner blinked, "and Michelle's friend."

Tony shook hands with the rich man with a smile on his face, and introduced himself: "Mr. Fang, our CGI Group is an independent information technology and business process service company with excellent technical capabilities. We have many cooperation projects with the government in Canada. There will be a day of cooperation with Ke in the future."

He also specifically introduced another label on himself: "Michelle and I are classmates at Princeton University, and I am very proud of what they have achieved today."

Fang Zhuo was a little surprised by this person's straightforwardness, and also changed his business card and number.

Kong Yu, who was next to him, took advantage of the opportunity to get a drink, and simply explained the boss's doubts: "It's almost an outsourcing company. It is not well-known in the United States. It came to the United States at the end of last year to increase its activities."

As for why it was the end of last year, it was naturally because of the label on Tony.

"Oh, an outsourcing company." Fang Zhuo understood.

Kong Yu reminded: "It seems that the relationship with Michelle is really good. The goal that Tony said is the future medical reform website project."

Fang Zhuo's simple exchange ended here.

Holding the wine glass, he looked at Tony with a smile on his face, and he knew that there were people who were ready to divide the meat around the big man, but the goal of an unknown outsourcing company was quite big, could it work?

Fang Zhuo had an interesting exchange with the person whom Geithner introduced for him.

In addition to Jack and Tony, there are also executives of banks and insurance companies, which are roles that can provide loans to asset companies.

Geithner was originally from the Federal Reserve Bank, so he knows everything about banking and insurance.

Fang Zhuo kept listening and got a lot of business introductions.

This group of people is also very interested in the business of the world's richest people, including the MIGA Fund, which has not let go of channels for a long time, and has also received inquiries.

Fang Zhuo's listening gradually expanded, and he chatted with Xiaoyan's relatives and powerful factions almost once before continuing to communicate with Geithner.

"Jack was a member of Goldman Sachs before?" He picked a person next to Geithner as an entry point.

Jack had just answered, but Geithner spoke for him: "It's just a job resume."

"Is he professional? We are very interested in the European market recently." Fang Zhuo asked again.

Geithner pondered, the MIGA fund transaction has been clear to him for a long time, and now the meaning of the words is self-evident.

This time, Jack took the initiative to defend his professionalism: "Mr. Fang, please trust my professional ability."

Fang Zhuo's eyes on Jack became severe.

Jack didn't feel anything wrong with Kong Yu from the MIGA Fund before, but now he suddenly felt very stressed when he met the eyes of the eastern man in front of him.

Geithner waved his hand, signaling Jack to go the other way.

"Mr. Kong's fund is professional enough. Whether it's making money or disposing of assets, we have to trust Mr. Kong's ability." Fang Zhuo softened his eyes and continued, "The fund only accounts for 3% of the shares in asset disposal, and Mr. Kong can't take it." This is not conducive to the subsequent asset disposal process.”

"After all, it's not just about shouting numbers. A series of things need to be arranged. Mr. Kong has always been fine. I don't want him to be hindered."

Geithner shook his head first, then nodded, "MIGA Fund is indeed very professional."

As an important customer of the fund, he has a deep understanding of this.

He thought for a while and made a suggestion: "The performance of the first batch of asset disposal is very important. Since Boss Kong is professional enough, it is no problem for him to lead the asset disposal. However, professional people should also take on more responsibilities. "

Fang Zhuo understands that the original capital threshold is the first batch of 5 million US dollars to participate in the disposal. Now that more responsibilities are assumed, more money must be spent. The total amount has increased, and the other party's final payment is the balance of.

He nodded slightly and agreed, "With greater ability, comes greater responsibility."

Fang Zhuo calculated in his mind, and then negotiated: "MIGA Fund accounts for 7% of the shares, and we are the first batch to participate in PPIP with 10 billion US dollars."

Geithner disagreed with such a big concession: "Sixty percent, the financial industry investment management company can continue to retain, Jack has the experience of working in Europe."

Fang Zhuo shook his head: "This industrial investment company will not appear in Europe, that is another way to play."

Now the industrial investment company in which the MIGA Fund holds shares is completely funded by MIGA, and Jack does not provide funds. Such a mechanism cannot be obtained in Europe.

He continued: "The European side is a very trusted client of the fund."

The fund's clients are Geithner personally, regardless of the lineup that includes Jack.

Geithner conceded another step: "Sixty-five percent."

Fang Zhuo agreed.

He stretched out his right hand: "Gethner, you are so fussy, but it is because of your haggling that the disposal of toxic assets this time can be done properly."

Geithner accepted the praise.

He called Jack again, and gave a simple instruction. The dominance has changed, and the MIGA fund will increase its shareholding and share ratio, but the total profit will remain the same.

And, clients of MIGA funds will continue to make gains in the European market.

Jack felt that his side had been brutally interfered with, but he had no problem with this brutality. The simple communication between the big shots determined the result, and they always had longer-term interests.

He politely shook hands with Mr. Fang again, accepted the new arrangement, and stated that he would provide professional capabilities.

Fang Zhuo was much more satisfied with such a share.

He signaled Kong Yu and Jack to communicate more and work together for the responsibilities they shouldered.

The chat between Fang Zhuo and Geithner on the disposal of the first batch of assets only lasted for a while. Afterwards, he still took on the role of listening, but he heard a lot of complaints from big shots.

Like Michelle's classmate, Geithner had a lot of complaints about his company. A health care reform website system opened its mouth and shouted a budget of 10 billion US dollars.

This is simply grabbing.

"The medical reform hasn't started yet? Let's ask the price first and then bargain." Fang Zhuo said with a smile, "Make a website and system. If it doesn't work, you can hand it over to my company. My Huaxia company is very good in the medical field. Professional, a large part of the business is for the hospital system.”

Geithner and Mr. Fang touched their red wine glasses, and said angrily, "Are you also Michelle's classmate?"

Fang Zhuo was silenced for a moment and laughed out loud.

He took a sip of his wine and shook his head: "I am a pure sports friendship, and I plan to invite Xiao Ao to watch the game this trip."

"Then I'm afraid he doesn't have time," Geithner said. "It's been a busy time, and there's a lot of chaos in a lot of places."

"That's right, we can only wait for the opportunity." Fang Zhuo understood very well, and said with emotion again, "The greater the ability, the greater the responsibility."

The former golfers now have to worry about the public image during this period, if not, let’s play golf.

The greater the responsibility, the more attention should be paid to the balance between work and rest.

(End of this chapter)