Archived Financial Talent

Chapter 480 The Predicament of Citibank

Chapter 480 The Predicament of Citibank
Lin Feng soon received details about the $50 billion loan between Citibank and the Morgan family from Zou Ming and Chen Dajun. According to this information, Lin Feng knew that the old Morgan was kind to the CEO of Citigroup. , It is precisely this way that Citibank gave the other party a loan of 50 billion US dollars just by accepting Stanley's stock collateral.

But the problem is precisely in this matter.After Citibank gave US$50 billion to Morgan Stanley, the other party failed to stabilize the company's stock price, causing the current stock price to drop by 70.00%.

At present, the stock price of Stanley has fallen to the liquidation line of the Morgan family and Citibank. If the Morgan family has no way to provide more collateral, then Citibank will start to deal with the stocks in hand.

Originally, before the old Morgan entered the hospital, he had asked people to prepare cash. After all, the funds borrowed from Citibank had already bought stocks, so the old Morgan could only raise money from other companies.

The problem arises here. After the old Morgan heard that the old Rolle had passed away, he also lay down in the hospital, so some bonds he had asked the Morgan investment bank to sell before had time to deal with them, and Citigroup did not buy them from the bank. The Morgan family received new collateral, and while they began to sell Stanley's shares in their hands, they continued to send people to the Morgan family to collect the collateral.

Originally, Stanley's stock price couldn't support it anymore. With Citibank joining the short side, Stanley's stock price was immediately overwhelmed. A sharp drop instantly brought Stanley's stock price into single digits.

Stanley, which had a market value of tens of billions of dollars, only had more than a billion dollars left in just half a month.

When Lin Feng received the information from Chen Dajun, he immediately guessed that Citibank would sell Stanley's shares at any time, because everyone can see that Stanley's stock price is falling every day. There is no meaning of stopping the decline. If Citibank still holds those shares in its hands, it is very likely that it will fall into its own hands in the end.

Citibank has its own risk department. It is impossible for them not to know about this situation. Therefore, if the Morgan family does not stand up and agree to add collateral to Citibank, then it is considered how much old Morgan has been to the CEO of Citibank. It didn't work either.

Zou Ming soon received Lin Feng's order, and when Citigroup began to sell Stanley's stocks, it began to close all positions.

Lin Feng's closing position does not refer to the position of Morgan Stanley, but also includes the positions of Morgan Investment Bank and Morgan Bank.

When Lin Feng wanted to short the Morgan family, although he put a lot of money in Stanley, he also asked Zou Ming to allocate some funds to other companies of the Morgan family. After all, they are all Morgan family properties. When a company is damaged Sometimes, it usually affects other companies as well.

Zou Ming obeyed Lin Feng's orders 100%, so when Citibank began to sell Stanley's shares, Zou Ming began to ask the people below to keep buying shares to close their positions.

But other people will not be the same as Zou Ming. As Citibank kept selling shares, the stock price also began to fall continuously. The more the stock price fell, the more crazy those investors were shorting. Zou Ming kept buying shares to close positions, but Stanley's stock price still fell to single digits.

Although Citibank has sold out all the Stanley shares in their hands, they are not happy at all.

Due to the recent sharp drop in Stanley's stock price, even if they sold all their shares, they only made up for the two-tier loss, and there is still a difference of 40 billion US dollars.

Although the 40 billion US dollars is still in Morgan Stanley's possession, judging from the company's stock price and liabilities, this company may soon follow in the footsteps of AIG.

Some time ago, AIG, the largest insurance company in country M, announced bankruptcy and reorganization. The company with a market value of hundreds of billions of dollars went bankrupt in just a few days. This situation made many people sigh.

If Morgan Stanley follows the example of other companies and directly applies for bankruptcy protection, then Citibank's 40 billion US dollars will really be impossible to get back.

Although after Stanley Corporation filed for bankruptcy, the Morgan family still has other properties, but each company is an independent legal person, so it is impossible for Citibank to ask other industrial companies of the Morgan family to pay back the money because Stanley Corporation owes them money.

So the most important thing in the middle is old Morgan. As long as old Morgan wakes up safely, at that time, old Morgan will be in the middle, and Citigroup believes that Stanley will not renege on its debts.

So Citibank immediately sent someone to the hospital to stay on guard for 24 hours, just to wait for old Morgan to come forward to coordinate after he woke up.

After the old Morgan was sent to the hospital, he was quickly pushed into the operating room. His condition was cerebral thrombosis, but fortunately he was sent in time, so the condition was not very serious.

But old Morgan is too old after all, so he needs to rest for a period of time before he can wake up after the operation, and it was during this time that the Morgan family had already experienced a big shock.

As a large family with hundreds of years of history, the Morgan family has hundreds if not thousands of members. For hundreds of years, the Morgan family has been involved in all walks of life in country M.

However, at present, the most profitable companies of the Morgan family are in the hands of old Morgan, so it is only natural for old Morgan to become the speaker of the Morgan family.

But at present, old Morgan is sick and admitted to the hospital, and he doesn't know when he will wake up. If he can't wake up, will the Morgan family have been in a state of no one to talk about?
And what if old Morgan never wakes up?

This is the most important.

The Rohr family in Europe has set a good example for the Morgan family, that is, directly promoting young and promising young people within the family, directly replacing the old Morgan's position, and managing the affairs of the Morgan family.

So the veterans of the Morgan family also began to follow the example of the Rolle family, and directly selected a young man in his 30s from within the family to take charge of the Morgan family temporarily.

However, the veterans of the Morgan family never thought that the situation of the Morgan family and the Rolle family were different.

The Luo Er family encountered a comprehensive blow from Lin Feng, so many of Luo Er's important supporters were defeated by Lin Feng, and they had no right to speak within the Luo Er family, so those veterans who were with Luo Er were in the Luo Er family When internal changes were initiated, the power in their hands easily suppressed the power of old Luo Er.

However, except for the huge loss of Stanley, the Morgan family did not suffer a lot of losses, and these very profitable companies were replaced by old Morgan when he was in charge of the Morgan family.

So the veterans of the Morgan family pushed a young man up, but no one listened to his command, so the young man was just a puppet up.

If the new talker on the Morgan family side wants to control the entire Morgan family, or after the old Morgan returns to the west, the power of the Morgan family will be reshuffled and everyone will stand in line again, so that he still has a slight possibility to control the Morgan family. .

Of course, he can also choose to buy those people from Old Morgan. After all, everyone knows the situation of Old Morgan. People, in this case, it is a technical job to stand in line in advance.

(End of this chapter)

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