Rebirth of the Financial Crisis Sweeping the World

  Chapter 232 Chapter 232 There is no way to negotiate a huge loss! The most panicking moment on Wall Street in 20 years!

  11 o'clock in the evening.

  Wang Guanxi finished chatting with Lin Xiaoyu.

  At this time, the phone rang, and it was Huang Shaokai, CEO of the Black Shirt Insurance Company.

After    was connected, Huang Shaokai said excitedly on the phone: “BOSS, now AIG Group’s share price has fallen to US$200 per share”

  The share price of Lehman Brothers fell sharply last night. At the same time, the share price of American International Group also fell sharply. The book profit of the black shirt insurance company soared, which is simply amazing.

   "This time the Black Shirt Insurance Company has made a lot of money, the Indian Industrial Trust and Investment Bank, and the Indian Private Pension would like to talk to us!"

This time, the Black Shirt Insurance Company shorted 5 million shares of American International Group. I asked the Indian Industrial Credit Investment Bank, Indian Private Pension, BlackRock Group, Citibank, UBS and every institution borrowed. 1 million shares.

  But now the Indian Industrial Credit and Investment Bank and India’s private pensions seem to be unable to handle them, and they want to close their positions.

However, the stock has been lent to the Black Shirt Insurance Company for short. If you want to close the position, the Black Shirt Insurance Company must first liquidate the short position, buy 2 million shares of AIG Group, and then return it to the Indian Industrial Credit Investment Bank and India Private pension.

  Wang Guanxi asked: "What to talk about? What can we talk about with Indians?"

  What the **** is this Indian making?

  Before, I came to the black shirt insurance company three times and again. Could it be that there is something wrong with it?

  Huang Shaokai said: “BOSS, they want to close the position and agree on a price with us. They said that the closing price is $190.00 per share. Let us close 2 million shares and return the stock to them.”

  This time, the Indian Industrial Credit Investment Bank and the Indian private pensions have suffered a big loss on the AIG Group, and they want to negotiate with the black shirt insurance company to liquidate the black shirt insurance company.

  For example, the stock price of American International Group is now US$200.00 per share. If the black shirt insurance company closes its position, the stock price will rise by then, and the average closing price is higher than US$200 per share.

  But Indians are willing to settle at a price of 190 US dollars per share, as long as the black shirt insurance company closes the position and returns the stock to them, because they also intend to close the position.

  Naturally, Wang Guanxi would not agree, and said: "Mr. Huang, tell the Indians that we do not intend to close the position for the time being, let them wait for a while."

  This Indian didn't talk about stock ethics before, and blocked the black shirt insurance company twice, once on Fannie Mae and once on American International Group.

  As a result, India's private pension fund suffered a huge loss, and the Tata Consortium suffered a huge loss!

  Now the Indian Industrial Credit Investment Bank and India’s private pensions want to negotiate, let the black shirt insurance company liquidate their positions and return the stocks to them, there is no way!

  Wang Guanxi wants to wait for AIG’s stock price to drop to **** before closing out, returning the stock to Indians, so that they can watch the value of their stock shrinking.

  "Yes, BOSS" Huang Shaokai immediately went to reply to the Indians.

  Sundep Bartra of the Industrial Credit Investment Bank of India and Nehru of the Indian Private Pensions after learning of the reply from the Black Shirt Insurance Company, they suddenly jumped up and shouted!

  "These greedy Chinese people"

   "Bad son, I don't know how to praise, wait for us, sooner or later I will find you to settle the account"

  This black shirt insurance company is shameless!

  They all put forward such generous terms. They settled with the black shirt insurance company at a price of 190 US dollars per share, so that the black shirt insurance company immediately liquidated the position and returned the shares of American International Group to them.

  But this black shirt insurance company actually disagrees!

Sundeep Bartra continued to curse: "These Huaxia people are really shameless things. This time they directly rejected our proposal. If we were not worried about the bankruptcy of Lehman Brothers and the AIG, how could I? Such generous conditions will be opened for them to close their positions!"

  Industrial Credit and Investment Bank of India owns 1 million shares of AIG Group. These 1 million shares were bought a long time ago.

   has always been a long-term holding. The position was opened at $600 per share, and now there is a floating loss of US$400 per share, which is a floating loss of US$400 million.

  And the relationship between AIG and Lehman Brothers is too close.

  AIG is the largest shareholder of Lehman Brothers.

  And also holds a large number of Lehman Brothers bonds.

  AIG and Lehman Brothers are grasshoppers on the same boat!

  I thought that Lehman Brothers would be acquired, but I never expected that the share price of Lehman Brothers fell to $3.00 per share last night, continuing to create a record low!

  AIG’s share price also plummeted last night, falling to $200.00 per share.

  The fate of these two companies are closely linked, but now Lehman Brothers is facing the fate of bankruptcy, what about AIG Group?

  Once Lehman Brothers goes bankrupt, then AIG Group will incur unbelievable huge losses.

  And the Indian Industrial Credit Investment Bank was really scared. The head of the Bartra family in India, that is, his uncle, asked him to offset the shares of the AIG Group to reduce losses.

  But the stock was lent to Heiji Insurance Company, and if Heiji Insurance Company did not liquidate the position and returned the stock to him, he would not be able to liquidate the position.

  So he had to put aside his noble self-esteem and negotiate with Huaxia.

  The annoying thing is that Huaxia people are so greedy!

   Nehru also cursed: "This little black-shirt insurance company is so ignorant of admiration, so he really takes himself seriously!"

  This time, Singel, the chairman of the Indian Private Pension Fund, also called him and asked him to liquidate the shares of AIG Group, but he could not liquidate the position.

  Because the AIG Group’s stock has been lent to the Black Shirt Insurance Company to short AIG Group, only when the Black Shirt Insurance Company closes its position can the stock be returned to them.

  So they wanted to negotiate with the black shirt insurance company, and settled at a price of 190 US dollars per share, which gave the black shirt insurance company a lot of face, but these Chinese people are too ignorant to praise.

  Speaking, Nehru placed the cup on the table fiercely, and the tea splashed out.

  I was really angry, but sooner or later he would clean up the black shirt insurance company again.

  At this time, the phone rang. It was from Ratan Tata, who had already returned to India.

  Connected to the phone and turned on the loudspeaker.

  Latan Tata asked on the phone: "Did Huaxia agree to liquidate the position?"

  He also intends to close the position this time.

  Because the Tata Consortium lost its share of AIG this time.

  Especially their partner, Legg Mason Group is also selling shares of American International Group.

  Since Legg Mason Group also intends to liquidate AIG’s stock, their Tata Consortium will naturally not be left behind.

  This investment in AIG is indeed a bad and wrong decision, so the Tata Consortium intends to admit its mistake and sell AIG’s stock.

  It should be known that the Tata Consortium previously bought 6.5 million shares of American International Group, and the position was opened at US$380.00 per share. Now there is a loss of US$1.17 billion in the account, and the loss is very serious.

  Now the Tata Consortium is also facing some crises and needs to withdraw funds to stop losses in time.

  So Ratan Tata also wants to liquidate the black shirt insurance company. He believes that the black shirt insurance company also shorted at least 5 million shares of American International Group.

If the Blackshirt Insurance Company closes its position, it is equivalent to buying 5 million shares of AIG Group in the market. At that time, the Tata Consortium can also liquidate its position, which happens to be a hedge against the Blackshirt Insurance Company. The Tower Consortium reduced a lot of losses.

  You must know that the Tata Consortium holds 6.5 million shares of American International Group. Although it has shrunk a lot compared to before, it is now worth 1.3 billion US dollars.

  If it is sold in the market, it will be enough to make AIG's share price continue to fall a lot, and the Tata consortium will lose more.

So what Ratan Tata thinks of is Sundeep Batra of the Industrial Credit Investment Bank of India and Nehru of India Private Pension. These two people first talked to the Chinese people about closing the position, and then they Tata Consortium Let's talk about it again.

  At this time, Sundeep Batra said: "Ratan Tata, these Chinese people don’t know how to promote, and they rejected our negotiation terms."

Nehru also said in a cold tone: "These Chinese people are so greedy, don't know how to promote, and are pretentious. They think they are a thing. If we weren't in a hurry to liquidate our position, how could we offer a settlement of US$190.00 per share? condition"

  Ratan Tata heard this, and said inwardly: "Grass, these Chinese people are shameless, right? Sooner or later I will clean up the black shirt insurance company!"

  In this battle of the AIG Group, the Tata Consortium also suffered heavy losses when blocking the Black Shirt Insurance Company. Now that the AIG Group’s share price is so weak, it may fall below US$200.00 per share at any time. Ratan Tata is anxious!

  He wants to sell the shares of AIG Group more eagerly than Sandep Bartra and Nehru.

  Because the Tata Consortium holds 6.5 million shares of AIG Group, the Tata Consortium will have to lose 6.5 million U.S. dollars for every $1 drop in AIG Group’s stock price.

  Now AIG and Lehman Brothers are grasshoppers on the same boat. Once Lehman Brothers has something to do, for example, it goes bankrupt, then AIG may have to go bankrupt.

  At that time, the 6.5 million shares held by the Tata Consortium would be worthless.

  Thinking of this, Ratan Tata was afraid for a while, he opened his mouth and said: "Continue to negotiate with the Huaxia people, let them close the position when they are 180 US dollars per share."

  Sundep Batra immediately said: "Okay, I will try again"

   Nehru also said: "The settlement of 180 US dollars per share, these greedy and ignorant Chinese people should agree to it."

   Soon, the two of them contacted Huang Shaokai, CEO of Heiji Insurance Company again, but Huang Shaokai was very firm. He did not negotiate or liquidate the position. Heiji Insurance Company will continue to hold the AIG Group's short list.

  This is maddening Sandep Batra, Nehru, and Ratan Tata.

   "This group of Chinese people is simply shameless to the extreme"

  "I don’t know how to praise too much, I don’t know how high the sky is."

  "This group of Chinese scum is really greedy enough, bastard, sooner or later I will blow you up"

  The three of them were rejected by the Black Shirt Insurance Company twice. They felt humble, humiliated and very uncomfortable inside. They vowed to kill the Black Shirt Insurance Company and the Black Shirt Investment Bank if they had a chance!

  Time passed slowly.

  The fear of the collapse of Lehman Brothers is fermenting, and Wall Street has reached the most panic moment in 20 years!

  Lehman Brothers’ life is hanging by a thread. In the eyes of many Wall Street people, this 158-year-old company is close to bankruptcy.

  At the moment in New York, USA!

  The reporters came to the Lehman Brothers headquarters building on Manhattan Island, New York. The satellite broadcast van of the TV station was parked across the road, and several cameras were facing the gate to record the expressions of Lehman employees at this moment.

  The photojournalists in the paper media hope to capture the "last days" of this Fortune Global 500 company with their cameras.

  There were even tourists who came from not far away from Times Square, holding the camera.

  An internal Lehman employee exclaimed: “This American media has been stationed here for 3 days, and we have to wait to see how Lehman falls.”

  A coffee shop nearby, many Lehman Brothers employees drink coffee here, some people come out to smoke and discuss the future of their company.

  At the same time on Wall Street, during the lunch break and after get off work in the afternoon, employees in ties, formal attire or shirts were invited to a certain restaurant or to discuss on-site outside the building.

The reporter next to    took a pen and paper and quickly took notes. Recently, American business newspapers have opened multiple pages to cover this company every day.

  There are also many people talking on their mobile phones, "It's all over," said an employee who had just walked out of the building while walking.

  Another employee hovered around the corner of the building, "Relax, relax, nothing happened." He looked serious, "Are you relaxed?"

  Now the share price of Lehman Brothers has fallen to around US$3, and 24,000 Lehman employees have lost about US$10 billion in paper wealth.

If Lehman cannot quickly stabilize investor confidence, its stock price will sink further.

  The risk of Lehman Brothers’ bankruptcy is getting bigger and bigger, making Wall Street panic!

  Because the Lehman crisis hit not only the company itself, it caused a huge panic on Wall Street.

  Some people compare Lehman with Bear Stearns, which has gone bankrupt, but if Lehman really cannot continue to survive independently, its impact will far exceed Bear Stearns.

Lehman is four or five times the size of Bear Stearns. Many financial professionals in New York believe that this is a company that is very close to Goldman Sachs in terms of efficiency and management.

  At the same time, Lehman plays an important role in many markets, and the safety of Lehman is related to the safety of these markets.

  For example, Lehman is the largest underwriter in the US mortgage securities market.

  Currently, most of these securities traded in the market are issued by Lehman, exceeding US$600 billion.

  If Lehman suddenly goes bankrupt, it will bring huge uncertainty to the prospects of the mortgage market.

  The US government announced on Sunday that it would take over the mortgage giants Fannie Mae and Freddie Mac, and decided to purchase the mortgage securities of the two houses to support the housing market and save the US economy.

  The Lehman crisis has worsened the fragile mortgage market and the US housing market.

  If the company goes bankrupt and clears its remaining positions in mortgage-related assets, it is likely that the US government’s measures to rescue the two houses will fail.

  On the evening of the 13th, traders from financial companies gathered together in restaurants large and small on Manhattan Island to discuss the current situation of the market and Lehman’s issues, and exchange information with each other.

  A hedge fund person who has worked on Wall Street for nearly 20 years told our reporter at the party that night: "This is the most panicking moment I have seen on Wall Street in the past 20 years."

  This is the toughest week for Lehman Brothers!

  In the past few months, rumors about Lehman have been flying all over the world, but none of the deals have finally materialized to save this precarious company, and investors have gradually lost patience.

   Not long ago, on the 11th, before the opening of the morning market, analysts from Goldman Sachs, Merrill Lynch and Citigroup respectively lowered their evaluations of Lehman. They were worried that the evaluation company would downgrade Lehman.

  Merrill Lynch analysts adjusted Lehman’s rating from “neutral” to “no opinion”, leaving Wall Street speechless, and traders rushed to criticize “Damn ‘no opinion’, what does it mean?”

  The downward adjustment of the three companies made Lehman Brothers’ share price worse.

  Before, when news of the breakdown of the Korean Development Bank and Lehman's shareholding negotiations came to the market, Lehman's share price plummeted by more than 45% that day, and the decline created a historical record of the company's one-day decline.

   Then Lehman urgently announced that it would release the third quarter financial report and a series of self-rescue plans the next day in advance. This is one week ahead of the originally planned financial report time.

  Before, Lehman stated that it had carried out an asset write-down of up to 7.8 billion U.S. dollars, causing the company to lose 3.9 billion U.S. dollars in the third quarter, which greatly exceeded previous expectations.

  This data also set a new loss record in 158 years.

  Lehman also announced its self-rescue measures: a substantial reduction in its holdings of illiquid assets such as mortgage loans and commercial real estate.

  In 2009, the commercial real estate assets were divested from the company and put into another new company.

   and will sell most of its shares in the asset management department.

   Lehman fell sharply on this day, and the market was dissatisfied that it had not yet reached a specific financing plan.

  Credit rating agency Moody's warned that unless Lehman can find a buyer quickly, the agency may downgrade Lehman's credit rating. Prior to this, another rating agency Standard & Poor's also included Lehman on the monitoring list for possible downgrades.

  Who will be the buyer?

  Traders say that Lehman is overconfident about the state of his company.

  In addition to South Korean investors, they have also contacted CITIC Securities and several large private equity funds in the United States, but these investors eventually left because of Lehman’s overpriced.

  In the intraday trading on the 11th, the market reported that Goldman Sachs will acquire Lehman. Some traders believe that only Goldman Sachs in the current market can understand Lehman’s ledger and have the ability to acquire it.

   But the two companies that were originally founded by Jews had a gentleman's agreement not to start with each other. "If Goldman Sachs bought Lehman, it would be equivalent to killing Lehman.

  Unless Lehman offered to say, "You save me, Goldman Sachs can't make a move," said a Wall Street source.

   Lehman Brothers internal employees said that if Lehman does not find a buyer within 24-48 hours, the company is likely to go bankrupt.

  Before the market closes that day, people start to count the families, and who has the possibility of making a move.

  **** The acquisition of Bear Stearns is still being digested.

   Deutsche Bank, HSBC and other options are gradually eliminated.

  As the day approaches the close, the market has heard that Bank of America will finally sell!

  But an official at Bank of America said that after the company acquired the mortgage lender Countrywide Financial, it only checked 80% of the latter’s accounts.

   Lehman’s $600 billion balance sheet must be extremely cautious for any company.

  Asian time, September 15, 5 am.

  Wall Street Journal: Britain’s Barclays Bank of America successively abandoned the purchase of Lehman Brothers, Lehman Brothers faces bankruptcy

  As Bank of America and Barclays Bank of the United Kingdom have successively abandoned acquisition negotiations on the 14th, Lehman Brothers, the fourth largest investment bank in the United States, will face bankruptcy.

  Beginning on the evening of the 12th, US government officials and banking giants held an emergency meeting to discuss the future of Lehman Brothers and try to restore market confidence.

  Because the US government refused to provide guarantees for the acquisition, potential acquirers including Bank of America and Barclays Bank withdrew from the negotiations on the 14th, and Lehman Brothers, with a history of 158 years, faced bankruptcy.

  According to the online edition of The Wall Street Journal, Bank of America is discussing merger matters with Merrill Lynch after giving up on the acquisition of Lehman Brothers.

  Industry insiders pointed out that if Lehman Brothers goes bankrupt, Merrill Lynch may become the next victim.

  This news brought another huge panic to the market.

  For Taifook Securities, Lin Yongfu looked at the news with a pale face. If Lehman Brothers goes bankrupt, Taifook Securities will suffer huge losses this time.

  Before, Taifook Securities Co., Ltd. spent HK$2.5 billion to buy Lehman Brothers shares. The average buying position was US$7.00 per share and 46 million shares were bought!

  Now Taifook Securities has a loss of US$184 million on the books, which is 1.426 billion Hong Kong dollars in total. Lin Yongfu became very, very scared and terrified in his heart!

  Taifuku Securities Co., Ltd. borrowed 40 million shares to short Lehman Brothers to Heishan Investment Bank. If you want to liquidate the position, you have to liquidate the position first and return 40 million shares to Taifook Securities Company!

   Thinking of this, Lin Yongfu hurriedly called Wu Zhanhai of Heishan Investment Bank.

  Wu Zhanhai also happened to wake up very early, went to the bathroom, then connected to the phone and asked, "What's the matter with President Lin?"

  Lin Yongfu said on the phone: "Mr. Wu, I hope you will close the Lehman Brothers short order, and the settlement price can be negotiated."

   Wu Zhanhai smiled and said: "Impossible, we will not close the position, President Lin, this is nothing to discuss, when we close the position, the shares of Lehman Brothers will be automatically returned to you, don’t worry."

   "Okay, I have to continue to rest"

  The BOSS told him before, there is no way to negotiate!

  Before the Indians wanted to negotiate, they were rejected directly.

  After finishing the call, Lin Yongfu's face was gloomy, and his back was sweating!

  No one wants Lehman Brothers this time. If it goes bankrupt, then Taifook Securities Co., Ltd. will definitely be ruined.

  I thought that the shares of Taifook Securities Co. had been shorted by the Black Shirt Insurance Company.

  If the stock price of Taifook Securities Co., Ltd. crashes, everything will be over.

  (End of this chapter)