Reborn as the youngest son of a chaebol, let's get to know his sister-in-law!

Chapter 445: Crisis is about to break out
Daojun knows that the two best ways to share his happiness are to spend unexpected money and to use the most leisurely time to spend money.

Daojun wanted to celebrate alone, so he came to the bar where Rachel and Rachel had been before.

While Dojun was drinking beer and laughing, he heard the gossip being talked about in the bar.

Someone asked loudly: "Did you hear that Zhuri did something crazy today?"

"Of course, is there anyone in the financial circle who doesn't know?"

"How much did you win?"

Someone got involved and is eager to know everyone’s input:
"I don't know the specific amount, but thanks to Zhuri, it should be a money feast for the financial industry, right? I heard that our Deutsche Bank alone is worth US$1200 million."

“Damn it, executives are getting high salaries and dividends again.”

"Aren't you anxious? If Zhuri's behavior really makes sense, they will have to pay US$2.4 million by then."

"I guess he will have to pay a huge amount of insurance money in the future... If he does this, he will suffer huge losses every day, and it seems that he is about to close down."

Although they chatted happily, they could not laugh at Dojun's madness.

Day by Day does some crazy stuff.

However, when everyone knew that the amount of money pouring into Wall Street was staggering.

Everyone began to think seriously about this matter.

Because of this, the bar was filled with worried and concerned murmurs, but not the expected jeers.

"Did you know they did the same thing in London?"

"London? England?"

"Yes, I heard that you promoted a credit default swap contract worth US$6 million to the Bank of England. Isn't it a real tens-billion gamble?"

"It would be great if it was true. What if the daily bet is right?

"Right? Then fuck all of Wall Street."

It's Friday night.

There are still two days between now and Monday.

People who buy the bonds of those real estate companies will put away their anxious minds and get busy at work.

"Hey, lad."

The gray-haired middle-aged bartender put a beer bottle in front of Dojun and said.

"Didn't you and Rachel do an $850 billion project or something here last time?"

"You are? Do you know Rachel?"

"Of course she's a regular here and my day job is to have a few of my favorite cocktails here and then go home from get off work."

"Ok."

"I know Rachel is the boss of Daily, so does the crazy performance of Daily that is spreading around have anything to do with the $850 billion?"

The bartender couldn't hide his curiosity and asked with bright eyes.

Daojun wanted to have a drink in peace, but at this moment, the cheerful atmosphere was broken by the bartender.

Dojun took out a hundred dollar bill from his wallet and placed it on the bar table.

"Did you take out a loan to buy a house?"

"No, I don't have any debt."

"I'm delighted, but I would advise you that it's not too late to sell the pub."

"what?"

The bartender was stunned and didn't even think about taking the $100 tip.

"If you sell alcohol on Wall Street where only the unemployed will visit in the future, you are not far away from bankruptcy."

Daojun smiled expressionlessly at the bartender and left the night streets of New York.

Will Emerson, executive vice president of risk management at Goldman Sachs, stared at the contract signed last Friday for a long time.

The red-haired man standing next to him, waiting for the vice president to speak, finally couldn't help but speak first.

"How about we contact Daily Investment first?"

"Wait a minute, the first step is to calculate the total accurately."

Vice President Will Emerson held his chin, still staring at the contract.

He seemed to have been waiting for the phone to ring.

"call me."

He picked up the pen and quickly wrote down the number he heard on his phone.

"Are you sure?"

He tapped the pen on the paper with the numbers, confirmed again, and hung up the call.

Will Emerson fell into deep thought.

After a while, Emerson was disturbed by the ringing of his cell phone and woke up as if from a dream.

He said to the red-haired man next to him.

"Everyone get to the conference room. Now!"

As soon as the vice president spoke, the red-haired man ran out.

Will Emerson double-checked the numbers.

The number 850 billion that Daojun circled with a pen made Emerson's heart almost stop beating.

As soon as Emerson entered the conference room, dozens of eyes looked at him.

Without saying a word, he asked a man a question.

"Michael, how are your investments currently doing?"

"what?"

"Subprime mortgages! Debt repayment status after applying floating rates!"

"About 3%."

Emerson frowned after hearing Michael's lack of confidence.

"About? Can you do it? Don't estimate, tell me the exact number."

"Give me five minutes."

Michael began typing furiously on his laptop keyboard.

"Last Friday, Michael bet that $85 billion of mortgage-backed securities would cease to operate. Their plan was $35 billion, but they lowered the bet in a couple of places, and you can guess, the content of the contract is the same as what we signed before. It makes no difference, so if they win... the amount we need to pay out is going to be a horrific $350 billion."

Everyone in the conference room opened their mouths wide after hearing this and remained silent for a long time.

The day-by-day action was the talk of the town over drinks all weekend, so no one knew about it, but it was the first time anyone heard the total stakes.

Curses starting with F quickly exploded in the office, and everyone was angry.

But because of Emerson's expression, everyone held back.

They wanted to know why the vice president was so angry about Goldman Sachs' $85 million when the company invested $2.16 billion.

"Some people had the same idea as Zhuri before, but the amount wasn't big, was it?"

After hearing the vice president's words, some nodded, and some just looked at each other, as if they were strangers.

"Zhuri is a place that prioritizes stability. Isn't it strange that 85 billion was dumped in a place that is extremely reluctant to lose money?"

"Emerson, that's $5000 billion a year in mortgage-backed securities. $85 billion is a lot of money, but it's a pittance compared to $5000 billion."

Some offered counterarguments, while others were buoyed by their optimism.

"At the Las Vegas Securitization Forum, we announced a loss rate of only 5% on subprime mortgage-related securities."

"Who?"

"In a keynote address by Bear Stearns President Bruce Miller."

Vice President Emerson interrupted and asked.

"What is the basis for 5%? Have you checked it?"

When the optimist henchman hesitates to answer, Michael, who is checking the default status, saves him.

But the numbers he calculated left everyone in the room feeling guilty and silent.

"Emerson, starting from this year..."

"How much? Just tell me the number!"

"8%………"

Michael began to feel the sense of crisis most clearly.

Because he saw the default chart rising sharply.

"If this trend continues, it will be more than 9% next month, or even soaring to 10%." Michael also revealed an important fact that should not be concealed.

"The floating interest rate is already more than four times the fixed interest rate. If this continues, all mortgaged houses will be picked up..."

Will Emerson's eyebrows trembled.

It’s safe to say that the numbers in the Securitization Forum keynote are baseless.

The forum is nothing more than a gathering of traders who set up stalls to sell more derivatives of financial products.

It was because of his meticulous insight that Will Emerson rose to the position of associate manager of risk management.

He was meticulous and found a tiny ant hole in the huge dam to prevent it from collapsing.

But he felt that he had to write a letter of resignation today.

This is not an ant hole, but a large crack has appeared, and water is still leaking. It seems that the dam will burst soon.

He hated himself for being blinded by the gorgeous money feast, but at this time, it was too late to blame himself for not doing anything.

He knew exactly what he had to do from now on.

Although risks are not identified in advance, risks that have already occurred must be minimized.

Emerson picked up the phone on the conference room table.

"Send five security guards up immediately."

The people in the conference room were stunned by his sudden movement, but they couldn't open their mouths.

Because Emerson's determined expression was unusual.

Emerson saw the security arriving and said to the security guards.

"Make sure everyone stays here and leaves their phones on the table while I'm gone."

Seeing the people in the conference room, he became louder.

"Everyone supervises each other. Anyone who dares to violate the rules and leave will be fired on the spot!"

Everyone quickly took out their mobile phones and put them on the table.

Emerson said to the security guard.

"Turn off all cell phones and stop using them, laptops as well, unplug the phone cords, get these people out of the room, and that'll be it for a while."

When security began collecting cell phones, Will Emerson ran to the Goldman Sachs president's office.

The conference room suddenly turned into an island completely isolated from the outside world.

No one can send the signal.

"Report, there's an emergency here."

"Sit down for now and have a glass of water."

Goldman Sachs Chairman John Rogers comforted Will Emerson who rushed over.

"Is it because of Zhuri?"

"Yes, but the real problem lies elsewhere..."

Chairman Rogers raised his hand, pointed at the TV, and covered Emerson's mouth.

"Look at that first."

CNN breaking news is broadcast on television.

"New Century Financial, the second largest subprime mortgage company, filed for bankruptcy protection in the Wellington, Delaware, court on the 2nd. On this day, the company also announced the layoffs of 3200 people, accounting for 54% of the total number of employees, and the sale of affiliated companies and other restructuring details.

It has been grappling with growing insolvencies as subprime mortgage rates have risen and home prices have fallen in recent years.

In addition, he explained that CIT Group and Greenwich Capital have agreed to raise $1.5 million, but the stock price has fallen 97% from last year. "

Will Emerson squeezed his eyes shut.

Ugh!
It has exploded!
"Do you know who the biggest creditor is in the new century?"

In response to the president's question, Emerson just nodded.

That's Goldman Sachs.

The top 10 financial institutions in the world are also major creditors.

"A $85 billion gambling agreement was signed every day?"

"Correct."

"John, $85 billion a day is nothing, we need to get rid of our CDOs (collateralized debt obligations) as soon as possible."

Unlike the anxious vice president, Rogers still had time to spare.

“What happens if we start liquidating CDOs? All the securities underlying the mortgages are dumped out in an instant?”

"Isn't that something we have to avoid?"

The chairman suddenly turned his head: "Do you know why Zhuri only signed a contract of US$85 billion?"

Emerson felt his stomach burning as he listened to the chairman's unhurried questions.

"A billion dollars is not a small amount of money."

"No, you said the total was $850 billion?"

"That's $850 billion."

"Even if it is 850 billion won, it is less than 2% anyway. It is an accurate portrayal of our solvency every day. We have signed many credit default swap agreements."

“Um, how much…?
"A billion dollars."

Emerson knew that the chairman's relief came from giving up, and as vice president of risk management, he realized there was nothing he could do about it.

Looking at the confused Emerson, President Rogers chuckled.

"Don't be like this. 200 billion of it is ours. We bought insurance just in case. Do you know the Gary Trust that was spun off from our company?"

"Yes, isn't it an investment team with independent personality? It is composed of talented people."

"Yes, the company signed a credit default swap agreement with Goldman Sachs, and the subsidiary has made $100 billion so far, so there is a bit of breathing space."

Chen Daojun was dumbfounded and said nothing.

The head office boasts that the property market will rise, while the subsidiary bets that the property market will collapse.

What would Goldman Sachs shareholders think if they found out?This is a clear betrayal of business ethics.

If Emerson knew that $100 million of the $1000 billion was contracted by John Rogers himself, he would be very melancholy.

John Rogers patted the sofa and stood up.

"It's getting late, but we should go play, right? I will instruct you to deal with all the scattered debts you have as soon as possible. From now on, you must do your best to prevent this situation from spreading."

"I would try to do something inside the company, but it's a mess outside."

"Other companies are not stupid. If we analyze the reasons for the daily sweep, they will come to the same conclusion as ourselves."

Wall Street has exploded.

There is no other way but to let individual investors know this fact as soon as possible.

Just like before, aren't the biggest victims of the economic crisis ordinary investors?

"Goldman Sachs has the fastest response speed among all companies in handling this crisis. Aren't you also actively talking to me and struggling to digest the negative impact of this crisis on you?"

Rachel, who had been bothered by phone calls all day, took a coffee break.

"Tomorrow this security will be sold everywhere by investors. There will also be stupid people who will try to buy it."

"Everyone here knows that it is only a matter of time before it comes out that the mortgage loans in country M cannot be collected."

The ugly look on Rachel's face didn't disappear.

"Harry, as far as I know, this is the only company that sells mortgage-backed securities."

"Are you talking about financial derivatives?"

"Yes, do you know how big the scale of derivatives affected by subprime mortgages is?"

"I know, after more than 20 times, my ears are calloused."

Seeing Chen Daojun's calm tone, Rachel shook her head.

"Why? Do I need to make a fuss when I hear that the world economy is collapsing?"

"No, the world economy is collapsing and you've accumulated a lot of money, but I don't think I'm particularly inspired by that."

"Extreme joy brings sorrow. The wealth of country M has made 850 billion US dollars, but millions of citizens of country M will live on the streets. You cannot be happy forever."

"No, I feel quite happy!"

Chen Daojun grinned.

In fact, making money is not a very happy thing.

The really happy thing is that this economic crisis will become the most deadly bullet that knocks down Chen Dongji.

Because he directly invested heavily in the construction of the Burj Khalifa, when the impact of the subprime mortgage crisis passed, the project was designated yellow!
(End of this chapter)