The Son of Finance of the Great Age

  Chapter 666 Quantum Fund with Huge Losses

   "Damn, how did this happen? God, what the **** is going on?"

  Soros jumped into a rage, like an angry tiger, jumping up and down in his office. And a group of senior executives and partners of Quantum Fund stood in front of him, silent like a cicada, not even daring to speak out.

"Who are you going to tell me what's going on?" After venting for half an hour, Soros stopped, "Why didn't we get any news? Why did the Japanese backtrack? Why did Stanley's top management No announcement at the height of the morning decline?"

   No one answered his question.

Rodney Jones muttered in his heart: "If you had done a little risk hedging at the beginning, you wouldn't be so miserable now. You don't listen to other people's suggestions, but now you ask others. How do you let others answer you?" ?” Although he was full of complaints, he would never say such a thing on this occasion.

  Time back to Monday morning.

  Before the opening of the market, Goodman announced its cooperation with Berkshire Hathaway. The market was in an uproar, and the "stock god" Buffett made an extraordinary move. The market's pessimism towards Goodman was swept away immediately, replaced by optimism. And the hedge funds that followed the wind no longer withdrew funds from Goodman's brokerage account, and even many hedge funds began to plan to take a heavy position in Goodman's stock.

Contrary to Goodman's instant reversal of the situation, Stanley's side has not made any movement, there is no news of large sums of money entering the account, and it does not refute rumors in the current market. It is completely indifferent Stance.

  The silence sparked more speculation.

   Correspondingly, Stanley's stock price was under greater pressure and suffered a severe sell-off wave as soon as the market opened. It is not surprising that after Goodman's company successfully resolved the crisis, the focus of the market was on Stanley, an investment bank. For a while, the prices of capital products such as Stanley's stock price and long options plummeted, while the prices of short options and CDS soared rapidly.

   "It has fallen to $52 per share, shouldn't we sell it?"

  In John Mark's office, he was lying on the executive chair, enjoying the bright sunshine in Manhattan, while leisurely talking on the phone. CFO Colm Kelleher rushed in, and yelled at the immediate boss in a panic.

   "Give me a minute!"

  John Mark covered the microphone in a calm manner, made a gesture to silence Colm Kelleher, and then pressed the speakerphone, signaling Colm Kelleher to listen together.

  Colm Kelleher's expression tightened, as if he realized something, he tiptoed to the desk and sat down gently.

   "Yes, we have obtained 9 billion US dollars in liquidity from the Japanese!" John Mark said slightly proudly.

   "What?" Geithner's voice came from the phone. The vice-chairman of the Federal Reserve was surprised and asked anxiously, "So what did you pay?"

"Part of the preferred stock, some of the common stock." John Mark explained slowly, "But there are some supplementary agreements, the Japanese can turn that part of the common stock into the preferred stock, which means that they may give up All voting rights. That way, our business wouldn't even be affected at all."

   Speaking of this, John Mark is even more proud.

"The Japanese agreed to such a condition?" Geithner was even more surprised, but after thinking about it, he immediately understood, "Yes. The Japanese are also afraid that you will have problems, after all, preferred shares have the priority to repay .In any case, Stanley's problem has finally been resolved, and I think Mr. Chairman and Mr. Minister will be happy for your efforts."

"Mr. Minister?" John Mark sneered, and said with disdain, "I have communicated with him beforehand, but he insisted on going his own way and asked me to cooperate with ****. If I really listened to him, I'm afraid today Stanley is going to declare bankruptcy!"

"hey-hey…"

  John Mark could accuse Henry Paulson wantonly, but Geithner dared not go along with it. After all, he is also a member of the officialdom, so he must not give others any excuses. But John Mark's attitude moved him, "John, if I can be nominated as the Minister of Finance, will you support me?"

  The term of the current President of the United States is at the end of the year, and at that time, a group of cabinet members, including Henry Paulson, will inevitably step down. Bernanke's term of office has not yet ended, and there will be no possibility of succession for a while. Ambitious Geithner aimed at the position of US Treasury Secretary, and has already started to make preparations. In addition to securing the presidential nomination, he will need broad support from the business community.

   For a big shot like John Mark, it would be great if he could show his support at the right time. And because the previous presidents of the United States have nominated CEOs from Goodman, the market is quite critical of this. If we can now get the support of another heavyweight institution, Stanley, this will undoubtedly gain more favor and support. Geithner had such wishful thinking in mind.

   "No problem!" John Mark agreed immediately without the slightest hesitation. Just when Geithner was overjoyed, who wouldn't want John Mark to add, "But what benefits can we get?"

"Damn it, you're really a Wall Street vampire for thinking about benefits before fulfilling your promise!" Geithner cursed secretly, but said in his mouth, "In terms of regulation, you will get more relaxed conditions. At the same time, with government support And help, you will get more care than other companies.”

   "Deal!" John Mark was overjoyed. He naturally knew that after transforming into a commercial bank, Stanley would accept the supervision of the Federal Reserve, although commercial banking business would not be Stanley's first choice in the future. But if you can get care, plus more support from the Ministry of Finance, Stanley's future recovery and re-emergence will be just around the corner.

   After another conversation, the two hung up the phone politely.

"Look, we've made another deal!" Looking at the pensive Colm Kelleher, John Mark said with great pride, "An important deal! By the way, what do you want from me?" ?”

  At this time, Colm Kelleher admired John Mark's ability to maneuver horizontally and horizontally, and looked at him with eyes full of admiration. It wasn't until John Mark urged him again and again that he replied casually: "That's right, John, when do you plan to announce the details of the transaction? You must know that our stock price is already under tremendous pressure."

"Of course we have to announce this news as soon as possible, but not now!" John Mark put on a posture of complete control, his demeanor was unobstructed. Let them know which companies can be touched and which companies cannot be touched!"

   He almost said these words through gritted teeth, which made Colm Kelleher tremble in his heart, and he couldn't help shivering all over. After going through the scene just now, he seems to have forgotten that the CEO in front of him also possesses the power of thunder.

  …

  The market knew nothing about this, and short sellers still acted recklessly. Stanley's stock price kept falling, and finally reached the $40 mark during the noon break.

  This also means that from the opening price of 69 US dollars to the current price of 40 US dollars, Stanley's stock has fallen by 40.2% in one morning. It has to be said that this is a crazy drop, and such a sharp drop is hardly seen in the market. Corresponding to such violent fluctuations, in one morning, the trading volume of Stanley's stock also climbed to a jaw-dropping level: a total of 1.285 billion US dollars, setting a new record for the morning trading of Stanley's stock after its listing .

   Analysts predicted at noon that if the situation still does not improve, Stanley will inevitably become the next Leimen Brothers.

  But when the market was extremely pessimistic about Stanley, Stanley suddenly posted a message on its official website, announcing that it had reached a sale agreement with Japan's Mitsubishi UFJ Group. Stanley will sell 20% of its shares to Mitsubishi UFJ at a price of $84 per share, totaling $9 billion. At the same time, Mitsubishi UFJ Financial Group will give Stanley an emergency financial assistance of up to US$30 billion when necessary.

  Almost at the same time, Mitsubishi UFJ Financial Group also issued an announcement with similar content. Comparing the two, anyone with a little common sense can verify the authenticity of this transaction.

   It must be explained that before this, the highest share price of Stanley had reached 150 US dollars per share. And just before Lehman went bankrupt, Stanley's stock price was still hovering around $90. It was only when market rumors spread that Stanley's stock price changed, and frequent skyrocketing and plummeting phenomena occurred.

  So when the announcement that Mitsubishi UFJ Group took a stake in Stanley Corporation came out, the market was stunned. It was only at this time that investors remembered the previous performance of Stanley's stock, and many people began to reflect on their investment strategies made out of panic.

  More people realize that Stanley Company will reverse the situation just like Goodman Company. First of all, the Japanese are by no means fools. They would not invest so much money in a company that may go bankrupt at this time. The only explanation is that it is profitable. Secondly, after the funds are recorded, Stanley's so-called liquidity crisis will be solved on its own. Without the support of this news, any shorting of Stanley has no basis. The most important thing is that according to the buying price of the Japanese, the price of Stanley's stock is really too cheap now!

  Buy it fast! This is the first reaction of most investors! The situation in Stanley stock suddenly reversed!

As soon as the market opened in the afternoon, a huge amount of buy orders poured into Stanley's stock, and the funds poured in like a tsunami, and almost instantly swallowed up the sell orders that had no time to retreat, and then Stanley's stock began to rise steadily , jumping on the ground like a broken bamboo.

  On the K-line chart, the original long Yin line shortened and narrowed at a speed almost visible to the naked eye, until it became a horizontal line, which means that Stanley’s stock returned to the opening price of $69. But it didn't stop here. Stanley's stock began to turn red to green, and continued to rise, directly pulling out a long rising Yang line.

  The process does not need to be detailed. After experiencing a sharp drop and a sharp rise, Stanley's stock price rose to $80 at the close, and finally closed at $82, an increase of 18.84%. If you don't look at the time-sharing chart, no one would think that this stock experienced a shock of nearly 60% in one day.

  Under such an extremely polarized market situation, it is natural that some people laugh and some worry. Laughing are those investors and institutions who bought at low prices before, as well as those lucky guys who bought on the way up. Those who are worried are investors and institutions who chose to sell at an inopportune time and did not close their positions in time.

For the Quantum Fund, the loss was a bit heavy, because the leverage was quadrupled during the short selling process, and the sudden attack last Friday reduced their position price, so this time Stanley's stock price rebounded Let them suffer heavy losses. After the transaction was settled and various derivatives were added, Quantum Fund lost a full US$1.5 billion.

   It's no wonder Soros was furious!

   Thank you book friend 8112268536 for voting for the monthly ticket! After the enthusiasm, it started to be bleak again. I can only blame myself for not writing well enough... The author continues to work hard, and he can endure the loneliness in order to keep the prosperity

  (end of this chapter)