Mediterranean hegemon

This unexpected episode had nothing to do with short selling, but everything to do with Union Bank. It’s funny to say that this was another one of Elinor’s faults for Contini. After she was discharged from the hospital, she thought repeatedly about Roosevelt’s car accident. Her intuition made her feel something was wrong, because they often drove on the road to the hospital and rarely encountered each other. Why was there only one heavy-duty truck that day? But otherwise impeccable, she could only use her Italian descent and the influence of the Roosevelt family to create hype. She did not even dare to directly focus her suspicion on the United Group. She only dared to find trouble with the New York gang first and then try to follow the clues, but Later, she was calmed down by Contini's words. Contini himself also visited her and paid homage to Roosevelt's grave. Judging from his expression, he was extremely sad and did not seem to be hypocritical at all.

Therefore, even though Elinor felt that it was very confusing, she did not dare to suspect that Contini was the mastermind behind the scenes. She only speculated that a senior executive of the United Group might have done something. Although her husband said that the entire economic system of the United Group was a scam, they did not do it. There was no direct or indirect conflict, and she did not think Contini would know all of this. If he did not know, there would be no motive for the crime.

The only thing she didn't understand was that Contini was a time traveler. The latter knew Roosevelt far better than she did. As soon as he discovered that Roosevelt was trying to access the relevant files and documents of the United Group, he immediately made up his mind and did not hesitate at all. Sloppy. But Elinor was not an ordinary housewife. She persisted for a long time, thinking that since it didn't work from the perspective of Italian descent, she should analyze the scam itself. She had to deeply understand the United Group scam from an economic perspective.

She had dealt with Strong, the president of the New York Fed. When the two met by chance at a charity party some time ago, Strong suddenly complained about Contini's "nonsense", so Elinor asked for advice. And asked a question: Why are goods often delivered to Italian warships? I've never heard that the president is doing a big purchase.

This aroused Strong's suspicion. He vaguely knew that United Bank had bought a batch of gold. After returning home, he immediately conducted an investigation within the Federal Reserve Bank. He didn't know it until he saw it. He was shocked when he saw it. From last year to this year, about 10 Within a few months, approximately US$800-900 million in gold entered United Bank as reserves, which was much higher than any other bank and exceeded normal demand. After fierce debate within the Fed, they finally reached a consensus and sent a formal inquiry letter to United Bank to ask them what was going on?

The letter of inquiry was issued on August 28. Francisco knew that he could not hide the matter. After reporting it to Contini, he used delaying tactics to delay the final reply period on September 1 on the grounds of investigation. The formal report to the Federal Reserve was very simple: First, United Bank did exchange so much gold, partly due to customer entrustment, and partly due to United Bank's own needs; second, the customer entrustment was temporarily undisclosed due to commercial confidentiality, but United Bank exchanged The purpose of gold is very clear, to consolidate the bank's strength and at the same time support the Italian lira gold standard system. After all, Unibank is the largest bank in Italy and is responsible for the security and stability of the Italian financial system. The last time there was a foreign exchange crisis in Italy, in order to effectively deal with this possible situation, Union Bank needs to start preparing in advance.

The Federal Reserve felt bad, and the next day after receiving the reply, they sent people on site to inquire about the current whereabouts of the gold. Francisco smiled: "Since it is to support the lira, it was shipped back to Italy, and there are customers' The gold was also transported together, No, these are the relevant documents and customs clearance certificates... Some of them were transported by United Shipping's cargo ships, and some were transported by the Royal Italian Navy. The navy has security capabilities. "

The United States does not restrict gold exports at this stage. Under the gold standard system, gold transfers can be realized as long as the report is filed. At the same time, due to the prosperity of the past few years, gold has gathered in the United States, making the U.S. government and the Federal Reserve more laissez-faire about gold transfers. With a last ditch effort, the Federal Reserve bureaucrats inspected the Union Bank vault, only to find that it was empty, with less than 1 million worth of gold in it. It was completely empty.

The Federal Reserve was immediately furious and asked Union Bank to transport the transferred gold back. Francisco said that he would not accept the order: This is a legal and reasonable operation, why should we obey the Federal Reserve's order?

Several officials from the Federal Reserve immediately telegraphed Contini, who was still in Boston. The questions were tactful, but the president's reply was very domineering: "Did the Union Bank's gold affairs violate any law? If not, I suspect you are abusing your public power." To retaliate against me and the United Group, I will hire the best lawyers to file a lawsuit. Some idiots should get out of their current positions!"

This is the second time the president has called a Fed official a fool. The first time he just told reporters that the Fed pretended to be deaf and dumb. This time, the word "fool" actually appeared on the telegram. Although it was not an official document, then It's enough to make people collapse.

The Fed was so angry that it planned to give Contini some color. It had no choice but to use its power to review the accounts of Union Bank, hoping to find out the flaws and then use administrative means to force Union Bank to relent.

Of course, the inspection was under the jurisdiction of the Federal Reserve. Francisco could only cooperate, and cooperation was cooperation. He really couldn’t understand Contini’s answer. After Contini returned to New York, he said in a complaining tone: “Your answer It was a little rude and got on their nerves.”

"I did it on purpose!" said Contini, "just to arouse their anger."

Francisco was stunned, and then advised: "Although the Fed has their problems, this is not Italy after all. We have to follow American rules for some things. I'm afraid..."

Contini nodded: "I know what you want to say, but this is not enough. Will we obey the Federal Reserve's expectations and move gold back? Don't even think about it!"

"Then they will start checking tomorrow...I'm afraid."

"Let them check, this may be a powerful tipping point." Contini smiled, "In my judgment, the stock market crash is imminent."

On September 3, the stock market roared past 450 points, which will be found to be the highest point in the future. The day before the Federal Reserve was preparing to verify the accounts on site, Contini made up his mind that he was going to take action!

"Call all our senior executives in New York, including Enzo and Ji'an..."

At 10 o'clock in the evening on September 3, the United Bank headquarters building was brightly lit, and Contini held an on-site meeting. There was no discussion or deliberation, only one cold order after another:

First, all United Shipping freighters and passenger ships in the United States should immediately prepare to leave the United States to prevent being detained by the United States;

Second, the fleet is preparing to concentrate on New York Harbor and complete all preparations for escape;

Third, Enzo and Ji'an are responsible for being on guard, all heavy equipment is dispatched, and the guards are ready to fire when necessary;

Fourth, the banknotes were exchanged for U.S. dollars, only entering but not exiting, and were handed over to Blackwater security guards;

Fifth, be on duty 24 hours a day, use the special password of the United Group, establish direct contact between the United Bank and the fleet through radio, and no longer use the US civilian communication system;

Sixth, United Bank will continue to operate as usual and cooperate with the work of the Federal Reserve. It will not conceal or transfer, but it can give employees holidays, extend the other party's verification time, and strive to take the initiative.

Francisco turned pale with horror and said in shock: "General...President of Calais, you...are you...are you planning to rob?"

"You are right, I am here to rob!" Contini said with emotion, "I am going to use legal means to rob on Wall Street. In order to prevent someone from jumping over the wall in a hurry, I must be fully prepared!"

On September 4, the Federal Reserve Bureau and the Federal Reserve inspection team entered the Union Bank. They originally thought they would encounter difficulties, but what they encountered was an expressionless Francisco: "What do you want to see, what do you want to check, although Please! I will answer within the scope of my authority and I have the right to remain silent.”

While watching the actions of the Fed inspection team, Contini stepped up his orders to Livermore to build positions. By September 8, United Trust had established a short position of US$3.2 billion, with a floating loss of US$200 million, but no one cared. .

The Federal Reserve inspectors felt cold all over as they started their work, because they saw too many joint security guards. One US branch headquarters actually had nearly 300 armed forces, and they also saw heavy machine guns and armored vehicles. This kind of force was completely beyond the control. Most bank vaults equipped with the Federal Reserve Bank are not guarded by so many people. What surprised them even more was the indifference and murderous look when the other party looked at them, which was completely chilling. They worked cautiously under the gunpoint. Finally, no guards came around, and the questioning of personnel and access to files went smoothly.

The Federal Reserve inspection team only conducted a rough 4 days and came to a conclusion that was no less than a magnitude 10 earthquake: Union Bank's capital flow was wrong! Since 2 months ago, United Bank has stopped lending to domestic companies and individuals in the United States, canceled all discounts, and gradually converted the bills it holds into cash. It has even actively issued bills to borrow money from the domestic banking system in the United States. The huge amount of money, in short, is that the Union Bank used itself as the main body to absorb nearly 2 billion US dollars in savings, and at the same time lent money to the banking system, a total of 1.2 billion, and also discounted 800 million to the Federal Reserve System, a total of 4 billion Cash positions in U.S. dollars are on Union Bank's books, but where have they gone? In addition to purchasing more than 500 million US dollars in stocks, all of them were distributed to companies in 14 European countries! Among them, companies from Italy and Switzerland are at the top of the list.

The Fed cannot tell the quality of these companies now, but it is an indisputable fact that United Group accounts for a large proportion of them. In fact, all the companies in these 14 countries are shadow companies controlled by United Group, and then these shadow companies pass through various banks. The system was decentralized, with some flowing back to United Trust in the United States to serve as margin for short selling, and some directly entering the Italian headquarters of United Bank.