Rebirth of the Financial Crisis Sweeping the World

  Chapter 440 440 The US$8 billion fraud that shocked the Americas!

  In the evening, we all dine together at the Crown Manor.

  Luo Baowen, Zhang Xiaolei, Jennifer Lawrence, and Ford Ingrid’s four women have always been on today’s luxurious Boeing private jets.

  Wang Guanxi said: “The aircraft needs to recruit new captains, as well as service personnel...There are still a series of things to do”

  "After everything is done, let's go to Hawaii for vacation together!"

  It's still winter time, Ohio is still quite cold, but the state of Hawaii, USA, is very warm, and it's perfect for a vacation.

  Also, Wang Guanxi has to wait for the economic crisis to continue to worsen. American technology companies will inevitably continue to decline in the valuation of Facebook.

  Wang Guanxi, if he remembers correctly, in April, the Facebook valuation created by Mark Zak fell below $5 billion.

  Now that the U.S. stock market keeps falling, the valuations of technology companies that are not listed are also plummeting.

  Especially Musk’s Tesla, SpaceX almost went bankrupt.

  Wang Guanxi went to Hawaii for a one-month vacation before returning to invest.

  Luo Baowen said expectantly: “I have been busy recently. It’s time to go on vacation for a while. I remember the last time I went to Hawaii when I just came to the United States to go to university.”

  She used to study abroad at Duke University in North Carolina, which is one of the top ten private universities in the United States. During the summer vacation, she went to Hawaii alone for vacation, and then never went there again because there was no time.

  Zhang Xiaolei also said: “To be honest, I have not been to Hawaii yet. This time I am on a business trip to the United States, my business is almost finished, and it will take a while to return to Hong Kong”

  Jennifer Lawrence said excitedly: "I have been in Ohio for a long time, and there are rural farmland everywhere. I really want to go to the beach for a while."

  Now in her head she is already looking forward to a romantic hug and kiss with Wang Guanxi at the beach. The two watch the sunrise together, watch the sunset together, and surf together near the beach in Hawaii.

  Ford Ingrid also said excitedly: “It’s been a long time since I went to Hawaii. It’s cold in Ohio now, and it’s warm in Hawaii now.”

  Wang Guanxi smiled and said, "Everyone is ready these days. When things are done, we will go to Hawaii for vacation. Hawaii is a good place. I plan to buy a super villa somewhere to facilitate future vacations."

  At this time, Luo Baowen thought for a while and said, "BOSS, are you still planning to acquire a financial company in Hawaii?"

  Wang Guanxi asked: "What financial company?"

  Luo Baowen smiled and said: “Look at the news, BNP Paribas’s subsidiary Western Group in the United States has suffered heavy losses and intends to sell assets to continue its life.”

  Wang Guanxi was taken aback: "Western Group under BNP Paribas?"

  Luo Baowen nodded and said, “Well, Western Group has been scammed and lost a lot of money, its cash flow has broken, and it seems to be insolvent. Now Western Group is planning to sell its assets, and Bank of Hawaii will also be sold.”

Seeing Wang Guanxi’s expression, Zhang Xiaolei said, "Mr. Wang, a financial fraud case involving 8 billion U.S. dollars was discovered in Texas, USA. Western Group is one of the victims. This Western Group owns several companies. The subsidiary intends to sell, including the Bank of Hawaii"

Luo Baowen said again: "Although this scam is not comparable to Bernard Madoff’s $65 billion scam, the $8 billion scam is enough to shock the entire United States. Now it is revealed that Western Group has suffered losses in this scam. For 2 billion U.S. dollars, I plan to sell its Hawaiian Bank. I am currently looking for a seller."

   Talking about Luo Baowen and opened the news.

  【Texas tycoon Alan Stanford defrauded US$8 billion】

  Alan Stanford was the main patron of last year's Democratic Party convention and had donated money to many politicians.

  These politicians have expressed their views to "draw a clear line" with him, and vowed to donate the money to charity.

Ford Ingrid’s face was shocked: “This Alan Stanford’s personality in the media has always been a good person. I didn’t expect to be a big liar like Bernard Madoff. I’ve seen him before. It’s a little bit. I can't tell that he is a liar."

  Wang Guanxi smiled and said, “Ingrid, one should not only look at the external image, don’t look at what he said, but look at what he did in private.”

  Ford Ingrid sighed: "I called his uncle before, but I didn't expect him to commit financial fraud in private."

  Wang Guanxi smiled and said: "The current liar deception is very high, and the whole America is shocked, just like that Wall Street scam Bernard Madoff!"

Alan Stanford, known as a "good guy," only two and a half years after the Madoff case was exposed, once again caused a shock in the financial world. Although the details of Stanford's fraud are still under investigation, his deception tricks are different from that of McDowell. Astorias do the same thing in the same way.

  The victims of the Allen Stanford fraud case are all over the Americas.

The Stanford Financial Group sold a total of US$8 billion in certificates of deposit to investors. When the interest rates of similar products from other banks were less than 2%, Stanford International Bank offered some customers interest rates as high as 16%, in order to discourage customers from receiving such a return. The rate of doubt, Stanford forged "impressive" financial statements.

  In this way, even though the minimum “threshold” for investment in certificates of deposit is US$50,000, customers are still rushing.

  Comparing Stanford and Madoff, these two super scams, you can find a lot in common.

   Both have a fascinating halo: the former chairman of the Nasdaq stock market company’s board of directors, Madoff, is a "financial genius."

  Stanford is a rich man on the Forbes list.

  Both are surrounded by celebrities.

  Madoff attracts investment through word of mouth by celebrities; Stanford is regarded as the "God of Wealth" by many sports and political celebrities.

  The two methods are exactly the same: the bait is the high rate of return that investors can hardly refuse to commit fraud.

  Both of them escaped the net of supervision in the early stage, but they were exposed to the raging financial crisis.

  Among them, BNP Paribas, a subsidiary of BNP Paribas, which has in-depth business dealings with Stanford Financial Group, suffered heavy losses and was defrauded of US$2 billion.

  The headquarters of American West Group is in San Francisco, California.

  So Wang Guanxi called Greg Becker, CEO of Silicon Valley Bank.

  After the call was connected, Wang Guanxi said, “Greg Becker, do you know about the Stanford Financial Group’s $8 billion fraud?”

  Greg Becker said anxiously: "BOSS, I already know it, and now the situation is very unfavorable for Silicon Valley Bank."

  Wang Guanxi asked: "What's the matter?"

Greg Becker said anxiously: "We Silicon Valley Bank currently holds US$1.5 billion in bonds of Western Group. This Western Group has suffered heavy losses this time and has also been redeemed by a large amount of funds. The debt may default. Then Silicon Valley Bank Will be dragged down too"

  Currently, the total assets of Silicon Valley Bank are 10 billion U.S. dollars, including 1.7 billion U.S. dollars in bonds. Of the 1.7 billion U.S. dollars in bonds, 1.5 billion U.S. dollars belong to Western Group.

  At present, Silicon Valley Bank can no longer suffer any more shocks, because now Silicon Valley Bank has loaned 1 billion US dollars to Ford Motor Company. If Western Group's debt defaults, then it will be bad.

  It's not just a problem of the stock price plummeting, the capital chain will break, and the situation is very bad.

  Wang Guanxi asked, "What's the matter?"

Greg Becker quickly said: "BOSS, when Western Group acquired Bank of Hawaii before, it was through debt issuance. The former CEO of Silicon Valley Bank had a close cooperation with Western Group, and then he bought Western Group’s bonds. Western Group is also one of the shareholders of Silicon Valley Bank, holding 8% of the shares. They are now beginning to sell the shares of Silicon Valley Bank to cash out funds. Now the stock price of Silicon Valley Bank has fallen to 11 US dollars per share, and the market value is left at 612 million. Dollars now"

  Wang Guanxi was shocked, and then said: “It’s okay, let them sell the stocks, as long as they don’t default on their debts. Behind the Western Group is BNP Paribas, it should be okay.”

  Originally, Wang Guanxi planned to acquire the Bank of Hawaii under the Western Group, but he did not expect that Western Group would also drag Silicon Valley Bank into the water.

  Wang Guanxi said: "You call the CEO of Western Bank first and ask if BNP Paribas will inject capital to cover it!"

   "Yes, BOSS" Greg Becker hurriedly called.

  At this time, Wang Guanxi's phone rang, and it was from Wu Jianmin, CEO of East West Bank.

   is connected.

Wu Jianmin said on the phone: "BOSS, East West Bank has loaned 300 million US dollars to Western Group. Western Group is also a minority shareholder of East West Bank, holding 5% of the equity. They are also selling the shares of East West Bank. Today, East West Bank’s stock price has already It fell to $3.24 per share."

  “This Stanford Financial Group defrauded Western Group of 2 billion US dollars, and Western Group’s cash flow has now dried up”

  Wang Guanxi was surprised again. He did not expect Western Bank to have business cooperation with East West Bank. East West Bank loaned 300 million US dollars to West Bank.

  Silicon Valley Bank and East West Bank’s stock prices have plummeted today. The Crown Charity Fund holds 50% of the shares of the two banks, and the book losses are not small.

  The share prices of the two banks were cut in half, and the market value was halved.

  The Crown Charity Foundation holds 50% of the shares. It is conceivable how terrible the loss on the book was, because it was acquired at a premium before, and now it has lost almost half of it.

  The Stanford Financial Group fraud case is really hateful!

  (End of this chapter)