America's Road to Wealth

Chapter 176 Showdown to Wall Street
Of course.

Abel is in Los Angeles.

It's not the whole day, just thinking about singing in the backyard with Annie.

Or play red couch with Charlize.

He's here, except for Dark Horse Comics and AMC.

In addition to opening a new real estate company.

There are also serious things.

Like the day of the 11th and the 25th.

He negotiated another deal.

He bought a bank.

The bank has a big name, the Pacific Bank of Commerce.

But in reality, the bank has only $1.65 million in assets.

A total of 4 branches, about more than one billion US dollars in custody assets.

According to the FDIC of the United States, that is, the classification of the Federal Deposit Insurance Corporation of the United States.

Pacific Bank of Commerce is a small bank.

The FDIC divides banks into three grades: large, medium, and small, based on their asset size:

Large banks are those with assets greater than US$2500 billion.

Medium-sized banks have assets between US$100 billion and US$2500 billion.

Small banks are those with assets less than US$100 billion.

According to this standard, only three banks in the United States are actually large banks.

The three banks are Wells Fargo, Citigroup and Bank of America.

Other well-known investment banks such as Goldman Sachs are only medium-sized banks according to this standard.

The banking industry in the United States is very developed. At its peak, there were more than 5 banks in the United States.

If you count the little credit bureaus in the country.

At its peak, there were estimated to be 10,000+ homes.

Even now in 2000, according to FDIC data, there are currently 9613 banks in the United States.

In the figure of 9613, it is obvious that the number of small regional banks such as the Pacific Bank of Commerce is more.

That is, there are only a few branches, which are limited to small banks in certain places in a certain area of ​​the United States.

Such small banks have thin capital, high capital costs, concentrated customer base, and poor risk tolerance.

According to a study published by the Society of State Bank Supervisors (CSBS):
[In the United States, more than 2% of small banks fail or are on the verge of failure each year]

“Happy cooperation~”

After shaking hands with Richard, the chairman of the Pacific Commercial Bank who came over from Northern California on a special trip.

Abel smiled.

The latter showed a wry smile, so he had to smile too: "It's a happy cooperation, thank you for your help."

The Pacific Bank of Commerce is headquartered in Northern California, which is the San Francisco Bay Area.

Its headquarters happen to be in Palo Alto, one of the centers of Silicon Valley.

Abel has been there many times.

But the small bank is not doing well and has been losing money for years.

In parallel time and space, it will also be acquired three years later.

This time Abel made an early move and bought the bank directly.

On the contrary, Richard, the chairman, and his family can breathe a sigh of relief.

After watching Richard leave, Abel immediately said to Alan Baker next to him:

"Let's start the negotiation. Our goal is to expand the number of branches to more than 50 in the shortest possible time. According to the plan, the next ones are Desert Bank, Lianhua Bank, and major banks."

"Understood! BOSS! We will execute it immediately!" Alan Baker said quickly with a respectful expression.

For the next period of time, Abel's special advisory group represented him throughout Los Angeles and the West Coast of the United States.

Started a frenzied acquisition of small banks.

In just half a month, more than a dozen small banks, including major banks, Lianhua Bank, and Desert Bank, were successively won.

Among them, the main bank (the name is called the main bank) has only one head office, with assets of 1.08 million US dollars.

Lianhua Bank, which has four branches, has total assets of 2.35 million US dollars.

The main business of the bank is in the Chinese community in Los Angeles, which can be regarded as a disguised increase in the proportion of Abel's bank in the Chinese community.

Bank of the Desert has nine branches and assets of $5.32 million.

Desert Bank is also the bank with the highest price and the most assets in Abel's series of mergers and acquisitions.

Wait until December 12th.

The New York Observer, a biweekly magazine headquartered in New York, published such a piece of news.

This news report is about the business operation of its boss, Abel Smith, for more than ten days.

The headline of the report is——

"Fifteen Banks in Ten Days, Will a New Banking Giant Emerge?" "

[As we all know, Mr. Abel Smith, the chairman of this newspaper, is the top rich man on the Forbes rich list! 】

[But now Forbes needs to update Mr. Abel Smith's ranking in other lists! 】

[According to the author's calculation, Mr. Abel Smith has now become the 16th largest banking giant in the United States. 】

[Because he acquired and acquired fifteen commercial banks in a row in just ten days! 】

[Now it is under the name of the beloved chairman of this newspaper.There was already a bank called Pacific Bank of Commerce. 】

[This bank is located on the West Coast. It currently has 51 branches, with total assets of more than 40 billion US dollars and assets under custody of 270 billion US dollars. It can be ranked 16th in the list of banks in the United States! 】

[It is reported that it owns Smith Capital, a fund with an annualized rate of return of more than 289.3%. 】

[The latest two phases of private equity funds will be underwritten by Pacific Commercial Bank]

[This newspaper has reason to believe that under the leadership of Abel Smith.The young Pacific Bank of Commerce will become another new giant of the United States! 】

[At the same time, this newspaper is deeply skeptical of Forbes' claim that Mr. Abel Smith ranks among the richest people in the United States. 】

【Based on the financial resources shown by the beloved chairman of this newspaper, Forbes obviously did not do a good enough job in collecting information】

[This makes us question Forbes, is the authority of its other rankings the same? 】

【The author of this newspaper.】

This report positively reported Abel's crazy acquisition of closed small banks on the west coast.

At the same time secretly.

By the way, it also took a little bit of "Forbes" magazine, which is a bi-weekly publication like the "New York Observer".

This report caused a thousand waves with one stone.

It even caused great repercussions in the banking and financial industries across the United States.

The "Wall Street Journal", a good thing, soon interviewed some banking giants and management in New York and the United States.

For example, Mr. Richard Fuld, the president of Lehman Brothers Bank.

When being interviewed, he said in front of the media like this:
"Mr. Abe Smith is indeed an excellent investment genius. But this does not mean that he is equally good at managing banks."

"The management and development of banks are different from pure investment."

"I personally hold a conservative wait-and-see attitude towards Mr. Abel Smith's entry into the banking industry!"

Except Richard Fuld.

The "Wall Street Journal" also immediately interviewed Mr. Paulson, the president of Goldman Sachs.

Paulson's words are much more peaceful, and he smiles in front of the camera:

"Goldman Sachs is willing to work with Pacific Bank of Commerce. Just as Goldman Sachs is willing to continue working with Mr. Abe Smith."

"We are willing to work with other bank colleagues to build a better American banking order. Let everyone have more peace of mind when depositing in the bank."

"Let everyone's financial management and investment obtain stable and stable returns!"

If there are good things.

Going to investigate at this time, Paulson's remarks and tone of voice in the media from last year to this year.

They will be surprised to find out.

The bald bank executive, what he said in front of the media, became more and more steady and official.

Wait another year.

Everyone will know why there was such a change when Paulson was interviewed at this time.

Because just next year, he will become our finance minister!
It was obvious that he had been in contact with the person who was going to live in the White House before then.

Otherwise, during an interview with today's Wall Street Journal.

It would not be very official to say such words.

In various series of interview reports.

to this matter.

Most of the presidents of the big investment banks on Wall Street are concerned about the emergence and rise of the Pacific Commercial Bank.

Take a "cautious attitude".

As for those large banks, like Wells Fargo, Citigroup and the like.

They basically didn't express their opinions.

It's just that in private, the frequency of Abel's cell phone ringing has greatly increased.

Like the day of December 12th.

Beverly Hills, 1414 Seabright Pl.

The edge of the outdoor sky pool on the terrace overlooking the night view of Los Angeles.

Abe lay on Jessica Alba's soft white lap.

In heated pool water.

He was on the phone with Morgan Stanley CEO Philip Purcell.

"~Ha, Philip, I mean it."

"I have already discussed this VAM agreement with the Texas consortium and Warren."

"That's right, they, like you, don't agree with my offer."

"Like you, they all think that my offer is too high. Although they don't say it, I think they must be saying that I am arrogant."

"But I'll tell you, Philip. As I told them."

"That's in my heart, I think this offer is really not high!"

"Ha~ I'm not kidding, I'm serious."

"Philip, think about it. I'm still in Los Angeles, so let me just say that!"

On Abel's side, hang up the phone first.

After hanging up the phone, he had a bad expression on his face.

This made Jessica Alba a little worried.

The big beauty full of mixed-race style stretched out a pair of catkins and gently massaged his forehead.

"Hey Jessica, it's only been two days. You've done a great job!"

Abel, who is in a bad mood, enjoys the sweetness of the beauty.

He said to Jessica Alba with a smile.

Jessica Alba had a bright smile on her face.

She has just finished her special training and will start filming the latest version of "007" next year.

Jessica Alba is next, taking a break.

For at least half a month, she can stop working.

She'll be back from Seattle right away.

Compared to being too smart, Annie was a little less smart when making choices.

Jessica, who is about the same age as Annie.

But from beginning to end, she knew what she was looking for.

Also from beginning to end, knowing who can better bring all this to herself.

Compared with Annie, Abel has to use some means, and let Jinna operate and guide it.

Make Abel worry.

As for Jessica Alba, Abel was really relieved.

In front of Abel's eyes, Jessica Alba is very obedient.

And it was the kind that became more and more obedient as his status and wealth rose.

When she was in New York before, Jessica still had a little intention of pursuing free love.

Now, after becoming the heroine of "007".

Jessica became obedient to Abel.

Even about Abel's scandals that were exposed in the media.

Jessica Alba has an attitude of not even asking.

It seems to be saying, as long as you keep feeding me, feed me well.

Then I don't care how many fish are in your pond!
She is a smart and sensible girl.

And this time she came back, in this villa.

In a spa.

Abel sometimes complimented the spa therapist on his performance.

She even directly proposed on the spot that she wanted to learn the other party's massage techniques.

Then I really learned it, and at a little extra cost, the masseuse taught her some massage techniques.

Then she applied this relaxing massage technique to Abel.

Maybe not as good as the professional SPA, but she is more beautiful.

You can also wear a bikini, let Abel who is being massaged enjoy it while reaching up..
In contrast, of course, Jessica's service of seeing, touching, smelling, listening, all included in it made him more satisfied!

"As long as you like it." Jessica Alba smiled sweetly, bending her waist slightly, making it easier for him to play with it..
Abel holds his phone in one hand and
He soaked most of his body in the heated pool water that was as warm as December.

Accept Jessica Alba's flattery.

He closed his eyes slightly, thinking about the next plan.

This aggressive plan to enter the banking industry has gone well in terms of acquisitions and mergers.

There are more than [-] banks in the United States.

It is not difficult to acquire dozens of companies.

Among the more than 9000 American banks, it is estimated that at least [-] are small-scale Pacific Commercial Banks.

The total assets of these banks are only [-] to [-] million US dollars.

Even if it is a premium acquisition, it is not too expensive.

What's more, most small banks are struggling to operate in the current environment.

In many cases, you can win them directly without paying a premium.

Like this time, less than half a month.

Abel bought fifteen such small banks on the west coast.

The total cost is about 45 billion U.S. dollars, and the total premium is less than [-] million U.S. dollars.

Now he has integrated these banks, as well as their branches and businesses, into the Pacific Commercial Bank.

This makes the current Pacific Commercial Bank a "large" small bank with total assets of US$40 billion and funds under custody of US$270 billion.

That's right, according to FDIC standards.

Its own assets are only 100 billion U.S. dollars, which is a small bank.

Abel did it because he was in such a hurry to get into banking.

It was because half a month ago, after the Smith Capital investment reception at the end of the year.

He has a showdown with investment banks and Wall Street.

After that, he stabbed many Wall Street firms in the back by the way.

This is already a feud.

Even if the enmity is not very great, he still has to be scruples.

Plus he felt the timing was right.

Wall Street can no longer be allowed to monitor its own capital flow at will.

So right now, he has only two options.

One is to own a bank, preferably a medium or large bank.

This is relatively difficult.

Because medium and large banks, if the timing is not good, the price of forced acquisition is too high.

Another way is to invest heavily in these medium and large banks.

After becoming their shareholders, they should be able to obtain certain confidentiality and protection in terms of capital flow.

But it's not safe, because Wall Street is also prone to collusion.

profitable situations.

Get rid of major shareholders and small shareholders, as long as they are not relatively controlling shareholders.

That's not uncommon for banks or Wall Street, either.

Abel decided to take a two-pronged approach and go directly in two steps.

One is to acquire a small bank first and then expand it through acquisitions and mergers.

Although this is not as fast and direct as the acquisition of medium and large banks, there is also the possibility of failure in operation and development.

But it is more economical, and you can also control your own fund transfer station.

The other is to continue to invest in those big banks.

Take both steps, so you should be able to better ensure the safety of your capital flow.

He has only completed one step so far.

Acquired the Pacific Bank of Commerce and expanded the small bank on the West Coast.

That's the first step.

It's just that his doing so is bound to cause dissatisfaction on Wall Street.

Because obviously, after he has his own bank.

A lot of money from Smith Capital.

It will definitely be placed on the Pacific Bank of Commerce side.

Although this does not prevent him from continuing to cooperate with other investment banks.

But his approach will obviously reduce the profits made by other banks on him.

Of course they are dissatisfied.

That's why these days.

The reason why his other mobile phones other than the number one mobile phone were almost blown up.

Those Wall Street giants, they called mainly for two purposes.

One is the desire to continue working with Smith Capital.

An investment company like Smith Capital, which is short-term and fast, with such a large trading volume.

Always a favorite of theirs.

Another purpose is to inquire about the possibility of investing in Smith Capital or Pacific Commercial Bank.

Just like this call from Philip Purcell from Morgan Stanley.

That's what you're asking.

But when it comes to discussing the price, these guys are too expensive.

With a valuation of US$5000 billion, there is only one building with fixed assets.

The valuation of Smith Capital made them unacceptable.

Even though the VAM agreement is very attractive, these interests-oriented guys are still dissatisfied.

In the face of these guys' lack of busyness, even veiled warnings.

Abel was unmoved.

He is no longer the freshman who entered Wall Street last year.

At that time, he was clean on Wall Street.

He has nothing but his talents and his family's cattle.

At that time, he had to be careful, be polite to everyone, and act like a social fear.

At the same time, in terms of cooperation and interest, they are very generous and carefree.

That was him last year.

Now he has a place on Wall Street.

Things about the Smith Capital investment reception.

289.3%, and possibly even higher annualized returns.

It has also spread throughout the United States through the wealthy circles in New York.

Smith Capital Phase II and Phase III funds that have not yet been formally established.

In a few days, more than 300 people came to inquire.

The funds expressed to subscribe have far exceeded.

More importantly, he can already guarantee himself on the physical level.

He will not be directly eliminated by arbitrariness, which is what he is most concerned about.

As the Texans take over next year, his protection in this regard will be stronger.

In this case, Abel is no longer willing to pay a large amount of protection fees to Wall Street.

It's time to show your teeth on Wall Street.

Let them know, Dixie dudes from Texas.

Already intending to sit on an equal footing with them.

(End of this chapter)