The Son of Finance of the Great Age

  Chapter 794 European Consortium (6)

Seeing that Paulson agreed without hesitation, Jose Luis regretted deeply, knowing that the price he offered was too low, but what he said was like water poured out, and there was absolutely no reason to take it back. , right now he can only bow his head and swallow the consequences of his inexperience.

Although Jose Luis regrets it very much now, the subsequent development directly made him fall through his glasses and made him realize how naive and ignorant he was, because Zhongshi and Paulson played too much, too big beyond his imagination.

  These are topics for later.

  CajaSur Savings Bank is a bank with a history of 146 years in the Zaragoza region. It has provided strong support for the economic development of the Zaragoza region for a long time, and at the same time has grown itself with the development of the Zaragoza region. By the 21st century, it had grown into Spain's largest regional bank.

However, with the collapse of the real estate bubble in Spain, CajaSur Bank soon fell into crisis. Its management and the management of Bupera Bank began to contact frequently, hoping to save themselves through mergers. During this time, the two sides Negotiations are in full swing.

  CajaSur Bank lost a total of nearly 600 million euros in assets due to mortgage foreclosure, which is almost a disaster for this bank with net assets of less than 3 billion euros. Popeira Bank is a large listed bank in Spain. Currently, it has sufficient assets and its management team is ambitious. It wants to take this opportunity to merge some regional banks, thereby challenging Santander's leading position.

  The two parties hit it off immediately, and quickly reached a preliminary merger agreement.

  But in the process of further negotiations between the two parties, a sudden change occurred, and a rumor completely broke the wishful thinking of both parties.

  In the Zaragoza region, foreign companies and the wealthy began to withdraw funds from CajaSur Bank frequently. Although there was no obvious evidence, the news spread throughout the streets of Zaragoza within a day, and soon there was a long queue of people queuing in front of the CajaSur bank to withdraw cash.

   When the rumor first spread, the Louis Wood Company from the United States transferred about 140 million euros from CajaSur Bank, and then the Wenzhou leather manufacturer from China transferred 80 million euros from CajaSur Bank. These two news soon began to circulate in the United States and Chinese business circles.

  The Americans and the Chinese took immediate action. Although the negotiations between CajaSur Bank and Banco Pobela continued, they no longer dared to trust CajaSur Bank after two transfers of more than 200 million euros in cash. Although everyone's net worth is different, but together, CajaSur Bank's cash account soon lost a large amount.

   What followed was that the news was completely leaked. The locals also realized the seriousness of the situation and queued up in front of CajaSur Bank to withdraw cash, and a run on the bank was formed.

   It is well known that banks obtain profits by absorbing deposits at low interest rates and lending at high interest rates. A balance needs to be struck between profits, risks, and liquidity. The most frightening thing for banks is a run on cash, because depositors flock to withdraw cash, the bank does not have so much cash, and the ability to realize assets is far from meeting the needs of depositors to withdraw cash, and the desire of depositors to withdraw cash will become more urgent at that time, because they If cash cannot be withdrawn, there will be concerns that the bank may go bankrupt, and the whole situation will fall into a state of loss of control.

Only two days later, the cash on the books of CajaSur Bank was said to be almost exhausted, and there was still an endless stream of people waiting to withdraw cash at various business outlets. Although CajaSur Bank has issued a statement, claiming that it has not fallen into In the midst of bankruptcy, negotiations are still going on in an orderly manner. But depositors no longer trust them, because big customers have transferred their funds, which makes them smell very dangerous.

   In this regard, the senior management of CajaSur Bank was at a loss, and had no choice but to urgently sell assets with better liquidity. But in the evening of the day, even worse news came, and the Pobela Bank suspended the negotiations with the CajaSur Bank.

Because CajaSur Bank was caught in a run-on situation, the original estimate of Pobela Bank for CajaSur Bank had a huge deviation. The share of 600 million euros may be far from enough to make up for the current situation. This figure may exceed 1 billion euros or even more Many, although they really want to expand their own territory, Popella Bank will not put itself in a dangerous situation, so after urgent discussions, Popella Bank decisively chose to terminate the negotiation.

  CajaSur Bank, which originally wanted to pass the negotiation, was suddenly dumbfounded. The foreign aid originally used to save itself retreated, and they were on the verge of bankruptcy. There was not even time left for them to find the next buyer. In desperation, they put their final calculations on the Bank of Spain.

   On the evening of the 25th, the Bank of Spain issued an announcement, claiming to rescue CajaSur Bank and clean up bad debts for them.

   So far, CajaSur Bank is the second bank rescued by the Bank of Spain. After the collapse of the Spanish real estate bubble, it has to be said that this number is very low. But for the market, there is another bank that needs to be rescued, which means that the Spanish banking crisis is about to break out.

  Although CajaSur Bank is only a regional bank in Spain, the news that it was taken over by the central bank detonated the entire global financial market, making all the efforts made by the European Council three days ago come to naught.

  In the Asia-Pacific market, the Hong Kong Index plummeted 3.47%, the Formosa Index fell 3.23%, the Nikkei Index fell 1.88%, and Australia fell 3.06%. The entire Asian market was devastated. In the midst of the red, the plunge in bank stocks was the most prominent. In Japan, a major financial country, Mizuho Financial Group, Aozora Bank, and Sumitomo Mitsui Financial Group fell from 1.21% to 3.08%, dragging down the performance of the entire market.

   Soon, the impact spread to the morning trading in Europe. The French stock market fell by more than 2%, and Crédit Agricole and Société Générale both fell by more than 4%. The FTSE fell more than 2%, while Germany's DAX fell 2.71%. Important bank stocks in the two markets fell far more than the performance of the broader market.

  At night, the shock wave reached the US market. The S&P, Nasdaq and Dow Jones all fell by more than 2%. They also did not escape the shock from Europe. Like Asia and Europe, bank stocks were hit the hardest.

  The entire world has been greatly impacted by the takeover of a regional bank in Spain, and in the entire global financial market, the exchange rate of the euro against the US dollar is undoubtedly the most affected.

   The euro exchange rate once soared to 1.2578 on this day completely ended the rising momentum. The three-day rise gave the European consortium a taste of the sweetness, but they had to bear the risk from Spain.

On this day, the euro fell from 1.2561 at the opening to 1.2448, down 113 basis points, or 1.88%. The position on hand of the consortium is difficult to sell.

On the second day, Europe fell slightly by 0.13%. It seemed that the downward momentum slowed down, but it is not difficult to find that the euro position did not have a significant upward momentum throughout the day, and most importantly, the trading volume continued to decline. , although the European consortium has sold some of its positions, it still has a large amount of positions piled up in its hands.

On the third day, the subsequent influence of CajaSur Bank continued to ferment, and the momentum of selling continued. The euro fell another 1.18% throughout the day. The price when Paulson and others sold.

   "Should we return to the position?"

  After the market closed, several conspirators gathered together again. This time, it was no longer clouded by gloom. The current situation was very beneficial to everyone. Not only did they have no losses, but they even made a lot of profits, which made Paulson and others smile.

   Paulson first asked, "The price is almost the same now, and it has been three days since the news. I believe the market has digested it enough."

   "I really didn't expect that when you put forward this opinion, I still had great doubts in my heart."

Delio also said, "But it turns out that this trick is really effective. Now the market is like a frightened bird, at least a little bit turbulent. They, no, the global market immediately fell after hearing the news. This situation is really too rare , is too interesting."

   "Mr. Zhong, you are such a short-selling genius!"

  Jim Chanos also said, "Not only a genius in shorting, but also a genius in macro."

  As for Ackerman and Griffin, they were too excited to speak. Zhong Shi's method of turning his hands into clouds and covering his hands into rain opened their eyes, and all that was left was endless admiration.

"yes?"

  Zhong Shi said lightly, "Gentlemen, what is certain now is that our short-term shorting of the euro has been successful. But I would like to ask everyone, what do gentlemen plan to do next?"

   "You... what do you mean?"

  Because he was too surprised, Paulson stuttered a bit, "Mr. Zhong, do you mean that you still have a plan?"

   Naturally, Paulson was not the only one. Others also heard the meaning of Zhong Shi's words. Immediately, everyone shut their mouths wisely and waited quietly for Zhong Shi's next words.

   "So far, I have not reserved the follow-up means."

Regarding the doubts in everyone's hearts, Zhong Shi explained clearly in one sentence, but the next words made everyone fall into deep thought, "However, I think that the exchange rate of the euro has not bottomed out so far. What do you think? Woolen cloth?"

   "Have you bottomed out yet?"

  Hearing what Zhong Shi said, everyone was shocked.

This round of decline in the euro started from the second wave of attacks on Greece in May. During the whole process, countries or institutions including the European Union, the United States, and the three major rating companies took action one after another. The rumors and mutual games have never stopped. During the whole process, the exchange rate of the euro has also fallen rapidly, from the exchange rate as high as 1.36 in April to the current level of 1.2187, and even fell below the level of 1.2 in just one step. .

However, in the face of the crisis, the European Union is becoming more and more united, and corresponding rescue measures and countermeasures have been thrown out one after another. Among them, Spain, the United Kingdom, Greece and even Italy have introduced measures to reduce deficits. At the same time, Germany and France have also demonstrated their responsibility. The image of a big country is fighting tit-for-tat with the United States. Now that the rescue mechanism of 750 billion euros has been introduced, the introduction of major measures such as Britain's rejoining the rescue mechanism indicates that at least so far, the chaos in the euro zone is coming to an end.

  Although Zhongshi made another move and led the market into chaos again, everyone knew that this was just a last-ditch struggle. Perhaps starting tomorrow, the end of the European debt crisis is possible.

   Who can tell what will happen in the future?

  But Zhong Shi dared to boldly say that the whole matter is not over yet, how could this not surprise everyone?

While being silent, everyone turned their brains quickly, and began to think about what factors they had forgotten in the market recently, but after five minutes, none of them could realize that there were other factors in the market that could To take advantage of.

   "At the end of the month, the EU will announce a series of economic data!"

  Dairio thought of a piece of news, and asked tentatively, "Is this an opportunity?"

  After his reminder, everyone realized this factor. These people may be familiar with the day when the United States announces important economic data, but they are not very clear about the European data. After all, the Bloomberg terminal will give them a reminder two days before the data is released.

"Yes, in the past month, the European market has experienced a sharp drop, although it may not appear in this month's economic data. But gentlemen, once bad numbers are announced, I believe the market will still fall. How about it? , dare to take a gamble?"

"what?"

  Everyone was shocked again.

  Originally they thought that Zhong Shi would use rigorous analysis and logical judgment to convince them, but this time the other party actually said that he used gambling, which made them feel quite speechless.

  Although it is said that the financial world is full of all kinds of gamblers, these people often do not achieve much. Just like Paulson, ordinary people would think that he won the subprime mortgage crisis, but they all ignored his rigorous investigation of the real estate market in the United States before that.

  There are no people in this world who are born lucky.

   "Of course, this is just my own choice."

Seeing that everyone was silent, Zhong Shi continued, "You have two options. The first is to close the position now and get a little profit to leave the market. The second is to follow me and continue to gamble to see if the euro can fall to one. What level!"

   Thanks to book friends Leizi, longkwok, and senju1 for voting monthly! It’s getting closer and closer to the end of the month. If you can write more words, write as much as possible. I hope more book friends can continue to actively vote for this book. Thank you very much~

  (end of this chapter)