Rebirth of England.

Chapter 732 Collapse
"We have reviewed the credit default swap (CDS) agreements between our subsidiaries and several banks. We can be sure that although the agreements have certain repayment risks at present, they are far less serious than reported by the media..."

Soon, LCR Rothschild Group responded to the overwhelming information about the CDS agreements that their companies had signed with those Wall Street banks binding Greek debt:

"We are communicating with the CDS agreement insurers including Goldman Sachs and believe that this matter can be properly resolved. At the same time, many media reports have exaggerated this matter and have had a great impact on the LCR Rothschild Group. If false reports continue, we will pursue responsibility."

LCR Rothschild Group rejected the media's request to disclose the total amount of funds involved in the CDS agreements of its companies, claiming that it was a company secret.

For a time, the CDS agreement between LCR Rothschild Group and those Wall Street banks attracted public attention.

You know, although LCR Rothschild Group is no longer a top financial institution in the world, its main business is only within Europe.

But the Rothschild family is very well-known, and many people have more or less heard various rumors about the Rothschild family, which was once rich enough to rival a country.

Now that their LCR Rothschild Group has been pushed to the forefront, people can't help but discuss whether it will end up like the American International Group.

Apart from ordinary people, the people who are most concerned about this matter at this time are probably the clients of LCR Rothschild Group. After all, the assets they help manage for their clients are still around 700 billion euros. If LCR Rothschild Group collapses, these assets will inevitably be affected.

A wave of waves has risen again.

Just when the CDS agreement of LCR Rothschild Group was causing a stir, a department head of NM Rothschild Bank suddenly testified to the French Financial Markets Authority (AMF), claiming that NM Rothschild Bank transferred the losses of its proprietary business through internal transactions, causing their wealth management department to bear losses of at least 20 billion euros caused by proprietary business.

France's Financial Markets Authority is the country's highest financial regulatory agency, and its director is appointed by the French Finance Minister himself.

This time, Badu Boyd, who came forward to testify against NM Rothschild Bank, not only told the Financial Markets Authority how NM Rothschild Bank transferred most of the losses from its proprietary business to the wealth management department through certain means, but also provided the Financial Markets Authority with a lot of detailed evidence.

According to Badu Boyd, NM Rothschild Bank had previously suffered losses of more than 30 billion euros due to the illegal operations of trader Pete, but NM Rothschild Bank only announced a loss of 10 billion euros. The remaining losses of more than 20 billion euros were transferred to the wealth management department through complex operations and borne by the clients of NM Rothschild Bank.

And Badu Boyd claimed that this was not the first time that NM Rothschild Bank had done this. In fact, all these methods had already been the "tradition" of NM Rothschild Bank.

The French Financial Markets Authority immediately launched an investigation into NM Rothschild Bank and asked the bank to seal all transaction data and information for their inspection.

At the same time, the relevant French investigation agency issued a restraining order against NM Rothschild’s executives, including its president Benjamin Rothschild, prohibiting them from leaving France until the investigation is completed.

"Your Highness, the news from France is that they will only give us ten days, after which they will reach a settlement with the Rothschild family."

Barron was not surprised to hear this result.

After all, just think about it, as the Rothschild family has been operating in France for so long and was once powerful, how could it be possible that they have no close ties with those politicians in France?

Maybe the other party has leverage over many people.

Barron was able to get these ten days because of the efforts of his allies and the dissatisfaction of Saddam and Christine Lagarde with the Rothschild family. Then, not only the news that LCR Rothschild Group might suffer huge losses in CDS agreements, but also the news that NM Rothschild Bank would pass on the losses of its proprietary business to its financial management users was overwhelming.

In addition, Baron and his allies began to short sell investments in LCR Rothschild Group's wealth management department.

When some clients of LCR Rothschild Group withdrew their investments due to concerns, they found that those investments had begun to shrink significantly.

What is even more alarming is that the redemption prices of many private equity funds are getting lower day by day...

There is no doubt that news of the impending bankruptcy of LCR Rothschild Group began to spread among these clients.

Even though LCR Rothschild Group has tried its best to reassure its clients, claiming that these are only temporary situations and will soon return to profitability...

But like a bank run, once this happens, it is difficult to stop it.

After all, everyone is afraid that if they run too late, they will lose all their money.

After the subprime mortgage crisis, confidence in the European market had not yet recovered, and then the Greek sovereign debt crisis broke out. Now this crisis has a tendency to spread to more countries, and the market is in a panic.

Baron and his colleagues' short selling is just going with the flow.

In this situation, the wealth management department of LCR Rothschild Group is seeing the value of their holdings fall.

And because their core NM Rothschild Bank was under investigation, many of their operations were restricted.

Now, as clients are scrambling to withdraw their investments, they also need to liquidate their financial assets, which in itself is a selling behavior in the market and will also contribute to the decline in prices.

These factors have caused the scale of its wealth management to plummet.

Under pressure, the LCR Rothschild Group could only issue an announcement, which not only condemned some capital for its malicious short selling against them, but also announced a limit on the daily amount of fund redemptions.

It can be said that under the current circumstances, this is a completely desperate and foolish move - but then again, LCR Rothschild Group has no other choice, because now all of their institutions are almost surrounded by customers who want to withdraw their funds...

Although some clients have withdrawn their funds, they are inevitably dissatisfied with the LCR Rothschild Group in the face of a greatly reduced investment, which also contributed to the collapse of the LCR Rothschild Group's reputation at this time.

Finally, just one week later, LCR Rothschild Group had to seek help from the French government. According to statistics, the scale of funds they managed at that time was less than 200 billion euros...

Half a month ago, the figure was 700 billion euros!
Many people know that the LCR Rothschild Group is finished.

(End of this chapter)