The Son of Finance of the Great Age

  Chapter 638 Kaminarimon Bankruptcy

  At noon on the 14th, the preliminary statistics of all parties were finally completed. Because they have to cooperate with the overall plan of the acquisition, the statistics are not so accurate. However, since the business will be completed as soon as the market opens tomorrow, I don't care too much about it.

  The next time is when many institutions draw up contracts and clarify rights and obligations. Because there are many terms that need to be listed, lawyers including investment bank legal departments and professional merger lawyers work together to agree on the details of the contract clauses word by word.

   “Has the final aid amount been determined?”

   Geithner sat comfortably in the large and comfortable boss chair, playing with his BlackBerry with his right hand like a butterfly wearing a flower, and seemingly casually asked Ken Lewis, CEO of Bank of America.

  About Bank of America's acquisition of Merrill Lynch, it has also begun to circulate among various CEOs. For this matter, the CEOs did not show too much concern. The liquidity underwriting of this matter may have to be handed over to the Federal Reserve and the Ministry of Finance.

"US$35 billion!" Ken Lewis smacked his lips with a rather rich expression, "Acquire their commercial real estate and private equity assets. After adding private equity assets, this transaction really has transaction value, hey! "

  Because the management of Raymond Brothers headed by Dick Foud was excluded from the entire negotiation system, they had no right to speak at all. In the end, in order to save Leimen Brothers, they had to accept any conditions offered by the joint consortium. But in fact, they didn't even have the chance to agree. All of this was done by Bob Dimon of Barclays.

  The reason why Ken Lewis was emotional was that he felt that it was unkind for the management of Leimen Brothers to be abandoned at this time, and on the other hand, he was naturally envious of the United Consortium's subtlety in taking advantage of the fire.

  However, he forgot that Bank of America would not have thought of acquiring Merrill Lynch at this time if it hadn’t been for Merrill Lynch’s stake in BlackRock, a general private equity fund. From this aspect, at least Bank of America is no less capable of taking advantage of the fire than the joint consortium.

"So everything is settled?" Geithner was in a good mood, and he stretched regardless of his image, "The only thing left is for all parties to sign. After working for so long, we finally got the Thundermon Brothers done. Barclay The bank has picked up a big deal at this time, the British guy..."

   Geithner could clearly see the emotions expressed by Ken Lewis, but he didn't have the heart to expose the CEO's hypocrisy. After talking for a long time, he suddenly remembered that the transaction was almost completed at this time, and he should give the British side a message.

  Watching Geithner dial the cell phone, Ken Lewis wisely got up and left, not forgetting to help Geithner close the office door.

   "Sorry, Callum, I've been busy with the Leimen brothers." Geithner first apologized, "I'm sorry I didn't inform you about these things in time. I didn't get everything done until now."

"It's me who should say I'm sorry, Mr. Geithner!" Callum McCarthy's tone did not show the slightest emotion. The director of the British Financial Services Agency seemed to be talking about something unrelated, "About Ray Brothers, we also need to evaluate whether the capital structure of Barclays can bear the risk of acquiring Lehman Brothers. After all, the risks brought by the capital demand and the risks in the transaction process will greatly increase the risk of this acquisition.”

   “Personally, I have serious doubts that Barclays will be able to meet its obligations, especially when we at the Financial Services Authority do not yet know!”

  Callum McCarthy's words are very aggressive and aggressive. Hearing Geithner's ears was like the cold wind of the twelfth lunar month, directly freezing Geithner's fiery heart.

   "You...you..." Geithner couldn't even speak fluently because of excessive surprise, and asked stammeringly, "Are you planning to make a formal statement not to approve this...acquisition?"

   "I didn't say that!" McCarthy naturally categorically denied it, but then he added something that almost caused Geithner to fall to the ground on the spot, "But if you understand it that way, it's okay."

"If Barclays wants to do this transaction, it must have a shareholder vote." McCarthy continued, "But they haven't done it now, and they don't have time to do it. This is a rule. Although the government has the right to approve it, I'm afraid Difficult to open."

   "I still don't understand what the **** is going on here?"

Geithner suppressed the panic in his heart, and asked dissatisfiedly, "According to what Barclays said before, including the government and the Financial Services Bureau, they all acquiesced to this transaction. If it weren't for this, then we wouldn't be so busy." gone."

"I absolutely did not give such a signal!" McCarthy naturally categorically denied it. Even if he had given a corresponding signal before at this time, he would never admit it now, "Maybe someone else gave such a signal, maybe Buck Lay misunderstood, but anyway, I did not give the other party a similar signal."

"Okay, okay!" Geithner was already impatient. He didn't know why the attitude of the British side would change so quickly, but he knew that now he needed to discuss countermeasures with Paulson and others, "Let me talk to myself first. Discuss with your superiors to see what went wrong. Sorry, Callum, no excuses!"

   "Good luck!" McCarthy's words are meaningful.

   But Geithner had no time to comprehend the deep meaning of the other party's words. He rushed to Paulson's office in a hurry, without even knocking on the door, opened the door abruptly, and directly repeated the conversation just now.

   "Obviously, the British side doesn't intend to approve this acquisition!" Geithner's face was as pale as paper, "Our work is in vain, God!"

   "I don't believe it!" Paulson was also angry, and he suddenly jumped up, his body even trembling with anger, "I'll call Darling now to see what his attitude is!"

   "Aristel, we just had a call with someone from the Financial Services Agency, and they don't seem to approve of Barclays' acquisition of Lehman Brothers. I want to ask, what the **** is going on here?"

  After the call was made, Paulson didn't even have time to exchange a few words, so he directly asked questions. It's no wonder that the matter is close to completion, but the most critical and the first thing that should be done is the approval of the acquisition, but it can't be done. Anyone who encounters such a situation will be very annoyed.

"Relax, Henry." Darling was not surprised. "The Financial Services Agency has contacted us. They said that there are still a large number of problems that have not been resolved so far. In principle, neither the British government nor the Ministry of Finance object to this transaction. But the acquisition of Barclays Bank has put the government under enormous pressure, and we are in a difficult position."

   "What do you mean?" Paulson heard the implication, but he was still not sure.

Darling didn't answer right away. After deliberating for a while, he said lightly: "So far, I don't know what the US government will do. But if Barclays Bank is in trouble because of this, the British government should choose trusteeship. At least so far, we have only one way to go besides capital injection. If this is the case, why don't we stop the transaction before the crisis occurs?"

   "If possible, the U.S. government can choose to host Lehman Brothers. As for Barclays Bank's acquisition of Lehman Brothers, I think it is unlikely that this deal will be approved in the short term. After all, we don't want to import your cancer!"

   Darling's words set the tone for the whole thing.

  At this moment, Paulson's heart was ashamed. He never expected that the other party would say this, and describe the collapse caused by the subprime mortgage crisis as a cancer. This metaphor made him feel so chilled that he didn't even notice when the other party hung up the phone.

   "Well, what did they say?"

   "Yeah, Henry, it's almost a race against time. If Aristel can convince the Financial Services Bureau to approve this transaction as soon as possible, today we..."

   Geithner and another Fed official scrambled to ask, both of them looked very anxious.

   "It's no longer necessary!" Paulson smiled wryly, with his mouth curled up, "He said he didn't want to import our cancer."

"What do you mean? What cancer?" Geithner was taken aback, and it took him a long time to realize, "What? He actually compared Raymond Brothers to cancer? God, is this the attitude of the Secretary of the Treasury? God, he doesn't Did you know that if Lehman Brothers were to die, the British financial system would suffer as well?"

   "There is only one way now!"

  Because of this blow, both Paulson and Geithner were listless. Paulson's face was changing, and he didn't know what he was thinking. And Geithner frowned, thinking hard about the current way to break the situation. Finally, after a long time, he suddenly slapped his thigh, "Henry, now the only thing we can do is ask Mr. President to call Mr. British Prime Minister. This is the only way to solve the problem."

"It's useless!" Paulson's face finally stopped changing, but it was still very ugly, "The Financial Services Agency, the Ministry of Finance, and maybe the Bank of England are also involved. At this time, who can make the final decision? Only the Prime Minister, even if Mr. President calls, can’t change the fact.”

   "..."

  As if a basin of cold water was poured on his head, Geithner's heart went from the sky to the soles of his feet. This basically told him that even the President of the United States had nothing to do, and this deal was completely over.

"Get ready to implement Plan B!" Paulson has recovered from the blow, stood up and walked outside, his footsteps and posture are full of fortitude and strength again, this is a guy with extremely strong psychological quality, and there is only such a guy In order to stand up again in the shortest possible time, "Get ready to clean up the mess after the bankruptcy of Raymond Brothers!"

  …

  Paulson guessed right. On the morning of the 14th London time, the Prime Minister, the Minister of Finance, the Governor of the Bank of England and officials from the Financial Services Bureau held an emergency meeting to discuss Barclays’ acquisition of Lehman Brothers. When describing the market's concerns about the British banking system, McCarthy specifically mentioned the name of Tianyu Fund. Naturally, Tianyu Fund appeared as a representative of making waves and destroying in the international financial market.

Hearing that several banks in the British financial system are currently in jeopardy, and that short-sellers in the international market are already stalking, the Prime Minister couldn’t sit still. After weighing the pros and cons of all parties, he decisively stopped Barclays Bank’s acquisition of Lehman Brothers case.

  This is why the United States has been busy for a long time in vain, but was finally flatly rejected by the British side.

It’s just that the British side didn’t seem to realize that their decision-making was inadvertently led by Tianyu Fund’s selling behavior in the market, and they got wrong information from Tianyu Fund, which further magnified this misunderstanding and finally made a decision. A seemingly correct decision was made not to approve the acquisition of Raymond Brothers.

   And until the end, they didn't realize that the US government had no intention of hosting Raymond Brothers, but had no choice but to abandon Raymond Brothers and let it go bankrupt. The bankruptcy of Lehman Brothers was like a nuclear bomb, which exploded in the entire international financial market.

  The losses caused by the impact on the British market are far greater than the benefits of not acquiring Leihman Brothers. This is something that the senior officials who made the decision never thought of.

   Thanks to book friends Molong Zhangui, cljdc, Niu Xiaofan, and Flying Elf for voting monthly! Thank you book friend Xiao Qi for the reward of the miracle of civilization!

  (end of this chapter)