The Son of Finance of the Great Age

  Chapter 649 Malicious short selling

   "Mr. Zhong, I have met the conditions you asked for. When do you think we can sit down and talk?"

  After hanging up Soros's call, John Mark couldn't wait to call Zhong Shi, his tone a little complacent and anxious.

  In fact, it was not John Mark who persuaded Soros to open a position in Volkswagen shares, but after Zhongshi’s itinerary was exposed, Soros entered the market after researching the German capital market and concluded that Volkswagen shares had great potential. Now that John Mark had put forward the conditions, Soros just pushed the boat along the way, told the other party about his position building, and at the same time successfully withdrew all the more than 5 billion US dollars in the Stanley account.

  Hedge funds have a much sharper sense of market hotspots than investment banks.

  John Mark was very depressed, but after thinking about it, he was overjoyed. Because he can attribute this credit to himself, but it is completely impossible for Zhong Shi to know. Thinking of this, he felt impatient and immediately dialed Zhong Shi's number regardless of the time difference.

"yes?"

  Zhong Shi was a little surprised, thinking that John Mark and his team had such a great ability to guide Soros to invest in individual stocks. Within Tianyu Fund, the macroeconomic reports and strategies of investment banks are only used as reference, and cannot be the first-hand information for investment decisions. Zhong Shi has made statistics on the analysis reports and strategy reports of dozens of top investment banks recognized in the industry, and the accuracy of the one with the highest accuracy is only 52.1%, which is too low, so he believes in the judgment of the researchers themselves .

  Zhong Shi believes that the same is true of the Quantum Fund, which is why he was surprised by Stanley's claims. But when he thought about it again, he couldn't help laughing. No matter what the reason was, as long as the other party entered the trap, it was enough.

   "Sorry, John, we have no interest in Stanley's shares!"

   Just as John Mark was stunned, Zhong Shi said lightly, "But John, I will introduce you to a more powerful buyer. They are very interested in Stanley, and they are your old friends."

   "..."

John Mark was speechless for a while, and couldn't stop complaining, "Mr. Zhong, please don't make such jokes in the future. God, I have undergone a heart stent operation. But Mr. Zhong, I am curious, who is it?" Interested in us, or our old friends? How much are they going to invest?"

   "Of course Huatou!"

  Zhong Shi gave the answer happily, "They are still interested in your equity, and they have already invested a lot in you in the early stage. Failure is not allowed now, so they will continue to invest."

"Really?" John Mark's voice became low, obviously not excited enough, "If that's the case, then they definitely won't buy 9.9% of the shares, so the amount we can raise Funding may not be enough."

   Huatou previously purchased part of the common stock of Stanley in the market, and then bought billions of dollars in convertible bonds. Now if it injects more common stock, it will definitely not buy the full 9.9% of the shares. This is not good news for Stanley, who is eager for cash to buy shares.

  But Zhong Shi didn’t pay attention to this. He clearly heard the other party say “maybe not enough”, and immediately asked: “Why, John, there is a problem with your cash flow? Why do you say ‘maybe not enough’?”

"Everything is under control!" John Mark shivered and quickly changed the subject, "Okay, Mr. Zhong, thank you for your connection. Now I will call my dear Mr. Gao, and they are welcome to fly to New York immediately .”

  Zhong Shi smiled and said nothing more.

In the past two days, rumors have been flying all over the market, and Tianyu Fund has also heard "rumors" about Stanley. If the "rumors" are confirmed from John Mark, it proves that the current situation of Stanley is indeed relatively difficult, otherwise John. And Mark wouldn't just say "fly to New York right now" nonsense.

  Presumably, John Mark should be sitting on pins and needles for the current position of chairman of the board of directors of Stanley Corporation.

  …

  In fact, there are many people who are more on pins and needles than John Mark at this time, and Henry Paulson is one of them.

"Sir, you must save us!" Blankfein begged on the phone, "No, maybe it's not us, it's me, it's the Goodman Company. The shameless Stanley Company is spreading us everywhere in the market." There are rumors that our stock may be under huge selling pressure when the market opens tomorrow.”

"These are not problems. The problem is that those malicious short-sellers will definitely take advantage of this opportunity to attack us. This basic routine is a pattern in which rumors cause the stock price to fall, and then the rumors become more prevalent and affect the stock price even more. These are not the fundamentals of the company. Instead, someone is manipulating the market and maliciously shorting the market!"

   "Malicious shorting?"

Paulson laughed back angrily, and sarcastically said mercilessly, "Lauder, are you crazy? You can think of such an excuse? Whether it is buying or selling, it is a spontaneous profit-seeking behavior. You know this better than me. Could it be that when others are selling or shorting your company’s stock, they are maliciously shorting it?”

"It is indeed malicious shorting!" Blankfein was decisive without hesitation, as if he had occupied the moral peak, "I don't know about other companies, but what is certain is that shorting Goode at this time of turbulent confidence Man’s institutions are all malicious short sellers.”

"Okay, okay, Lauder!" Henry Paulson smiled bitterly, and said helplessly, "Even if what you said is correct, they are malicious short sellers. But Lauder, what do you mean by saying this? You know I'm busy right now, just tell me why you're here!"

  As a former boss and colleague, Paulson is not easy to refute Blankfein's face, but this does not mean that he agrees with the other party's point of view, he just doesn't want to continue entanglement and waste time.

   "I want you to issue an order to prohibit malicious short-selling in the market!" Blankfein said calmly, "Yes, it is prohibited. Whether it is long-term or short-term, as long as malicious short-selling is prohibited."

"What the **** are you doing?" Paulson's voice suddenly raised an octave. He was really shocked and angry, and even blurted out swear words, "Are you crazy? You made such a request to me?" ? Who do you think I am?"

"Sir, it's not too much to make such a request now!" Blankfein was still unhurried. He expected that Paulson might have such a reaction, so he was silent for a moment, and continued to speak slowly, "Henry, if you think about it carefully, if companies like Goodman and Stanley are taken down by malicious short-sellers after Lehman Brothers, the entire market may collapse completely. Not only the investment banking industry, Any company that we do business with could be their next target."

"It's so funny!" Paulson continued to sneer, "Even if the world's markets collapse, I can't change the rules rashly. Do you know what this means? Even if the stock market is a casino, it must be a casino with rules. Because there are rules, investors will enter the market. Now you let me, let Cox (the chairman of the US Securities Regulatory Commission) modify the rules, which is no different from stealing. The market collapsed because of confidence? I think if the rules are to be changed, the market will It will collapse."

"That's not the case!" Blankfein still didn't give up, "Henry, you have to see, even if the market doesn't collapse and companies like Goodman and Stanley collapse, whose hands will the wealth end up in? Henry, don't be stupid, the wealth will end up in the hands of those hedge funds and the billionaires behind them. This kind of wealth redistribution, ordinary people don't get any benefits at all, and because of the collapse of institutions like ours And suffer losses. Those who lost their pensions, those who lost their jobs and needed assistance, they are the biggest victims. Can you watch these people pay for the transfer of wealth?"

   I have to say that his words reached Paulson's heart, so that the other party did not speak for a long time.

"When they are viciously shorting financial institutions and frantically withdrawing funds from their brokerage accounts, we really shouldn't blame them for anything, because profit-seeking is everyone's nature. But Henry, as the Secretary of the Treasury of the United States of America, you Shouldn't you stand up and do something? If you don't do something, you will be a sinner for the whole society when the financial system collapses."

  Blanc’s Sanskrit characters are punishing, pointing directly at Paulson’s deepest heart.

  For Paulson, the life and death of financial institutions has nothing to do with him, but the problem is that the life and death of financial institutions affects the life and death of most ordinary people. This is very important to him, and he cannot ignore it.

   "Then what good advice do you have?" Paulson finally sighed and expressed his position helplessly.

"If I were you, I would be like those cowboys in the west, first shoot a few shots into the empty streets to let them know that I am coming, and I am not easy to mess with!" Blankfein was overjoyed, and said viciously. Said, "The first thing I want to do is stop shorting financial institutions, whether it works or not. But what I need is this 'empty gun', which may shock the **** malicious short sellers , to let them know that things have changed and this can no longer continue."

"Don't even think about this, it's impossible!" Paulson replied feebly, "Don't forget, in the Congressional debate on short selling a few years ago, you were very supportive and even spent a lot of money Lobbyists are hired at high prices. Now that it’s your turn to be short-selling, you immediately change your position, and it’s impossible for you to get support for this approach.”

   Goodman was still under Paulson a few years ago, so he is very familiar with all this. Blankfein's face became hot, and he didn't say anything more on this issue.

"Well, then, issue an emergency order to suspend investors from withdrawing funds from Goodman's or other companies' brokerage accounts, or transfer them away." Blankfein changed the method, "In fact, they are not really They want to take the money out of those accounts because it helps them make money, and as long as we're sure that Goodman, or whatever, has a lot of cash flow, they're not going to take the money out."

"Your method is even more unbearable than the previous method!" Paulson shook his head violently, "I have no right to do this! Citizens have the freedom to withdraw and deposit funds. Unless I am asked to amend the constitution, otherwise this order will It can’t be done.”

"What about CDS?" Blankfein still did not give up. "Cancel all CDS related to financial institutions in the market. You know that this kind of derivatives puts too much pressure on us. If they can be cancelled, I think there is a problem with them." It won't be very big."

   "Can you give some practical advice?"

  Paulson finally couldn't hold back any longer, and shouted into the microphone, "Do you know how big the CDS market for financial institutions is? If that's the case, I might as well invest the money directly to save the financial institutions!"

   "This method also works!"

   After a long silence, Blankfein said leisurely, "Yes, it is to prepare a large sum of money to save the financial institution."

In order not to keep everyone waiting too long, I will use my mobile phone to take the time to write a chapter today. Everyone will read it first. After the author returns, I will try my best to update it on time. I hope everyone will continue to support this book. By the way, thank you for not being me last night , Pull out the knife and cut off the fuel to vote for the monthly ticket!

  (end of this chapter)