Rebirth of England.

Chapter 597 Bankruptcy
Barron's first child, Jennifer, is four years old. She has been attending the best "kindergarten" nearby for two years and has many good friends. The parents of these children are all rich or noble.

"Kindergarten" in the United States can be divided into Daycare and Preschool. In fact, Preschool is more similar to the concept of "kindergarten" in China, while Daycare mainly provides care for children before they are three years old - even the earliest children can be sent when they are 6 weeks old. Entering Daycare is often a time when parents need to go to work and have no one to take care of them.

But those rich people will naturally not send their children to Daycare early. They will directly hire nannies to take care of them.

The reason why Jennifer goes to kindergarten is because Rebecca hopes to cultivate Jennifer's ability to interact with peers.

Jennifer has Barron's signature light blond hair. She is just four years old and has baby fat on her face. She looks like a cute little angel.

When he comes to America this time, Barron will also take a few days to spend more time with her, which makes Jennifer very happy.

……

In fact, this time, whether it was the crisis of Freddie Mac and Fannie Mae or the imminent collapse of IndyMac Bank, it happened earlier than in Barron's previous life.

Barron was aware of this situation earlier in the Bear Stearns incident.

After all, the subprime mortgage crisis is indeed too famous, and it has also had a great impact on the subsequent global finance. It can be said that practitioners in the financial industry must understand this crisis.

In his previous life, Barron had carefully studied the subprime mortgage crisis and read a lot of relevant information. It can be said that he knows the time when some landmark events in this subprime mortgage crisis occurred by heart.

The previous Bear Stearns incident was only about ten days ahead of what happened in the original time and space...

But when it came to the matter of Fannie and Freddie and IndyMac Bank, it was already more than a month ahead of the timeline of the original time and space in Barron's impression!

After conducting the analysis, Barron also made a general guess. This should be the impact of the large-scale participation of funds controlled by Barron in this subprime mortgage crisis...

For example, in the original subprime loan bond CDOs and swap bond CDS, black swan funds accounted for a large share of short selling, and also had betting agreements with some major banks.

Coupled with short selling in other markets, Barron's participation can be said to have contributed to the triggering of the subprime mortgage crisis...

You must know that the subprime bond market is a market close to the root cause of the subprime crisis. The subsequent financial and stock markets and then extending to the real economy will gradually expand the destructive power.

Everyone knows the so-called "butterfly effect". When Barron is reborn and participates in global capital investment, his behavior will have an impact to a greater or lesser extent.

Of course, the world's operation has its own inertia, and his individual power is limited, so this impact can be ignored at first.

But as the funds and resources at Barron's disposal swelled like a snowball, the amount of wind that the wings of his "butterfly" could bring became stronger and stronger.

Although it will not cause the "wheel of history" to deviate too much, at least there have been changes in many details.

Just like in this subprime mortgage crisis, his strong participation has begun to accelerate the process of the subprime mortgage crisis.

Barron understands that one day, the securities investment data in his memory will be completely different, but the general trend is still worthy of reference.

At the same time, he was also preparing for that day, such as the network of relationships and intelligence he had been building, as well as the layout of certain industries. …

"Rather than acquiring IndyMac Bank as a whole, we are more willing to acquire part of their business..."

Davis, the president of Standard Chartered Bank who came to Los Angeles, will be responsible for the subsequent acquisition of IndyMac Bank. After he studied the details of the bank, he told Barron.

Prior to this, Barron had asked his think tank team to conduct detailed investigations into some American banks and obtained a lot of information, including IndyMac Bank.

IndyMac's assets before the crisis were around US$320 billion, but the bank's main business was the securitization of real estate mortgages - it is no wonder that they fell in this subprime mortgage crisis to such a situation.

According to their analysis and contacts with IndyMac Bank and relevant regulatory agencies, if they want to take over IndyMac Bank at this time, Standard Chartered Bank will need to come up with at least US$50 billion in funds.

A considerable part of this is to help IndyMac Bank repay part of its arrears and provide it with liquidity.

But the problem is that what Standard Chartered Bank needs is not a complete IndyMac Bank, but branches and depositors of this bank to complete their banking network in the United States.

The scale of their previous acquisition of American Express Bank was limited and did not include the core credit card business of American Express Group. It only improved the foreign exchange settlement business of Standard Chartered Bank.

If the assets of IndyMac Bank's branches and depositors can be acquired, Standard Chartered Bank's business in the United States will be more complete, and it will also be able to penetrate into the U.S. banking system.

After all, under the current situation, it is not impossible to spend US$50 billion to take over IndyMac Bank, but it is not cost-effective.

And with the full outbreak of the subprime mortgage crisis, I believe there will be more "cost-effective" acquisition targets. At this time, it is better to be more careful.

In terms of such specific matters, Barron generally respects the opinions of professionals. Therefore, since Davis's view is this, he handed over the acquisition of IndyMac Bank to the other party.

Just like Barron said to Schwarzenegger, he can take over those troubles, but only if he can bring benefits to himself.

He is not here to do charity...

If a buyer cannot be found as soon as possible, the collapse of IndyMac Bank will be irreversible, and Standard Chartered Bank is the only buyer currently in front of them...

Standard Chartered is in a strong position and therefore in no rush.

But IndyMac couldn't stand it, after their offer for sale was declined by Standard Chartered Bank.

Three days later, IndyMac Bank declared bankruptcy and was taken over by the Federal Deposit Insurance Corporation (FDIC).

Later, if Standard Chartered Bank wants to acquire some of the assets of IndyMac Bank, it will need to deal with the FDIC.

(End of this chapter)