Rebirth of England.

Chapter 711 Responsibilities
What happens next is not complicated.

Pete began to establish a short futures position when the international gold price reached US$1185 per ounce, and was ready to start adding positions as the price rose.

At the beginning, just as he expected, the international gold price began to rise slowly from $1185 per ounce, and Peter also reduced his position to 5000 million euros...

Calculated based on a 10x leverage, the assets he controlled reached 5 million euros.

Although there was a small overall loss at this time, he was not panicked. Instead, he was very excited because the trend of gold prices at this time was completely in line with his expectations.

When the international gold price reached US$1200 per ounce, Peter's investment had reached million euros.

He knew that when the gold price reached the current integer level, it would inevitably adjust, and the bulls and bears were about to face a fierce showdown.

The development of things did not deviate from his expectations. In the next two days, the international gold price fell back to US$1180, and judging from the curve, the competition between the two sides was still very fierce, which could be seen from the fact that the trading volume during this period was obviously much higher than usual.

At this time, the previous book losses in the investment account previously controlled by Pete were about to be offset.

He knew that if the international gold price continued to fall, he would make a profit.

And it is at this time that the international gold price began to fluctuate slightly around $1180... According to Pete's prediction, this pullback in the international gold price will touch the previous gap of $1050, and it seems that the bulls of gold futures are very strong at this time, and they are still prepared to fight back even in the face of bear attacks.

But the experienced Pete understands that many times these are just appearances, and many times the main force in the market is playing with the psychology of other retail investors.

Why is it so difficult for retail investors and even small and medium-sized investors to make money during many large cycles of price increases?

This is because the trend is not smoothly rising. Many declines seem to be just a small wave in the price trend of this cycle, but they are cliff-like declines in the chart at that time.

After several such waves, many weak-willed small and medium-sized investors or institutions often misjudge the situation and are shaken out.

"Haha, I have seen through your sinister intentions..."

This was Pete's mentality at the time. He knew that the seemingly evenly matched confrontation at the current price of $1180 might immediately change the situation and usher in a wave of decline in the next moment.

Although Peter's current position in gold futures is close to his authority to use funds, he thought that before this, they had used some "tricks" to avoid risk control - as long as they could get a good return in the end, no one cared about these...

Therefore, in high spirits, Pete began to lower the margin ratio, which was equivalent to increasing the leverage ratio.

But what happened next was a little beyond Pete's expectations. He did not see a sharp drop in the price of gold. Instead, the international gold price rebounded slightly and was approaching $1200 again.

"Are you going to use another script? But no matter how you perform, the end result will be the same. I'm not afraid of you."

This was Pete's inner thought at the time.

However, as the price rose, due to the increase in leverage, the losses in his account had multiplied compared to before. It seemed that he had to make some "small moves"...

……

"That's it. He used his position to open multiple fake accounts to hide the true situation of the entire investment and evade risk control supervision..."

After hearing the report from his men, Benjamin Rothschild asked in disbelief:
"Impossible! How did he get the right to use such a large amount of funds?" "He... fabricated a contract and obtained the right to use a portion of the funds in the name of providing customers with high-proportion capital allocation. And the so-called customer was actually a virtual account of his..."

"F**K! Is this the regulatory system we are so proud of?!"

Benjamin Rothschild was furious.

"In fact, under normal circumstances, his actions would be discovered, but..."

Benjamin's men hesitated for a moment and said:
"It just so happens that we recently acquired several related companies and added some related businesses, so the transition in this regard is a little confusing..."

"Can you be sure that these are his personal actions?"

The subordinate understood what Benjamin meant. He nodded and said:

"We conducted a detailed interrogation and used that drug... and compared his confession with his operation records, which were completely consistent. There was no sign of other forces involved in this process..."

"Try to solve this matter in a low-key manner..."

After hearing Benjamin Rothschild's order, his subordinate looked at him and asked:

"So Pete... is the trader who got into trouble. He...?"

"He is of no use now. Hand him over to the police, but ask them to keep the matter confidential for the time being."

In order to prepare for the worst, they cannot let Pitt be dealt with by them... Just like the Societe Generale at the time, when it is absolutely necessary, they still need to disclose the entire process, which requires the involvement of the government. Therefore, although they don't want to, they still need to hand the other party over to the police for investigation.

Taking a deep breath, Benjamin Rothschild asked coldly:

“How much is the current loss?”

“There are at least 35 billion euros in direct losses... but if some of these losses are transferred to the funds we manage, the losses attributable to our proprietary trading business will be significantly reduced..."

His men said in a deep voice:

"But if that happens, the performance of our fund management business this year will not look good..."

"But it's better than bearing the losses ourselves, isn't it? After all, no one can guarantee whether things will get better after the crisis..."

"I understand, Mr. President."

In fact, Benjamin Rothschild had no choice but to do this, even though his father was the founder of NM Rothschild Bank and he now manages one of the core businesses of the LCR Rothschild Group.

But after all, it is still not his turn to call the shots in the entire Rothschild family, and he still needs to face many challenges in the competition for the family heir.

Even if this incident was an "accident", it exposed huge loopholes in the risk control system of NM Rothschild Bank. He needs to bear this responsibility.

(End of this chapter)