Video Game Empire

1991 may be the best and last window for Li Xuan to enter Wall Street, and the next such good opportunity will probably have to wait until the subprime mortgage crisis 20 years later.

The U.S. economy is in recession right now. From a historical perspective, this is only a short and mild recession. The U.S. economy will soon come out of its trough and usher in another decade of sustained prosperity.

But if you are in it, you will find that things are not so easy. In the 1980s, leveraged buyouts in the United States were rampant, and junk bonds were widely sought after. This has a lot to do with Reagan's large-scale tax cuts and the implementation of expansionary fiscal policies, resulting in abundant liquidity in the capital market.

When the economy is down, this high-risk and high-yield capital operation model will immediately turn into a mine that can shatter one's bones, and the first one to be recruited is DrexelBurnhamLambert!

As the largest junk bond investment bank on Wall Street, DeChong Securities was once ranked the fifth largest investment bank in the United States, but it declared bankruptcy in February last year. Another well-known investment bank on Wall Street, First Boston, was also trapped in a bridge loan of hundreds of millions of dollars for a leveraged buyout, and finally had to invest in Switzerland's second largest commercial bank- Embrace of Credit Suisse Group.

In fact, according to the Glass-Steagall Act enacted in 1933, investment banks cannot be acquired by commercial banks. But in order to avoid the bankruptcy of First Boston, which would lead to more turbulence in the U.S. financial market, the Federal Reserve turned a blind eye to the illegal acquisition.

The turmoil on Wall Street does not stop there. DillonRead, a 160-year-old investment bank, was acquired by the famous British investment bank Barings at a low price of US$122 million not long ago. Before the 1970s, this company had always been in the top echelon of Wall Street investment banks, but in the last decade or so, it has weakened considerably.

Speaking of which, the Bush administration has a lot to do with this company. The current US Secretary of the Treasury, Nicholas Brady, is the former chairman of Dulwich Investment Bank. And Mr. Jerome Powell, Deputy Secretary of the Treasury, was also born in Dulwich. He joined the Bush administration immediately after resigning last year as Dulwich's vice president.

If Li Xuan was reborn a few years later, he might still have a little impression of this name, because after the election of President of the United States, he was appointed as the new chairman of the Federal Reserve.

Whether the Democratic Party is in power or the Republican Party is in power, key positions such as the Secretary of the Treasury and the Chairman of the Federal Reserve, which formulate US economic policies, will always be in the pockets of Wall Street. Therefore, it is not an empty talk to say that Wall Street is the real controller of the American economy!

The current economic recession that the United States is facing has not only detonated the junk bond market, but also caused the U.S. real estate industry to collapse. This has caused all credits, including housing loans, to be invested in the real estate industry, and the bad debt rate has soared, which has directly led to the large-scale bankruptcy of the small and medium-sized banking industry in the United States in recent years. Even the big banks in the forefront have plummeted in business performance, and they have chosen to merge with each other to report to the group to warm up.

At the same time that Jiahua Bank acquired Bowery Bank in New York, the second largest bank in the United States, Bank of America, completed the merger with the fifth largest bank in the United States, Pacific Bank. After the completion of the restructuring of the two California-based banks, although the total assets did not overtake Citibank, which ranked first, the scale of the two sides has been extremely close.

At the same time, American Hua Bank, the fifth largest in the United States, and Han Hua Bank, the eighth in the United States, also merged in a flash, and the new American Hua Bank after the merger jumped to the third largest bank in the United States. Chase Bank and JP Morgan Bank, which were originally ranked third and fourth, dropped one place to become the fourth and fifth largest banks in the United States.

If you have read the book "Currency War", you must be very familiar with the five banks other than Bank of America and Bank of Pacific. According to this description, five New York-based banks, Citi, Mayfair, Hanwha, Chase, and Morgan, control more than 50% of the Federal Reserve Bank of New York.

The Federal Reserve Bank of New York is the branch with the largest voting rights among all the twelve branches of the Federal Reserve, and it almost controls the internal operations of the Federal Reserve. It is through the privately owned Federal Reserve that these big banks completely control the entire US economy.

No matter how credible the content of this book is, there is no doubt that these big banks can profoundly influence the financial policy making of the US government and Congress.

For example, current Fed Chairman Alan Greenspan, he is the first chairman in history who was not born from within the Fed. But if you look at his resume, he not only served as the boss of an investment consulting firm on Wall Street for a long time, but also was a director of Morgan Bank. He is still inseparable from the shadow of Wall Street.

Li Xuan wants to successfully acquire its investment banking division, Hilson-Lehman Brothers, from Amex. In addition to the US government and the US Congress, the most important thing is to get Wall Street.

Now one of Wall Street's main investment banks, First Boston, has just been acquired by Credit Suisse Group, and is in the midst of the turmoil of consolidation and layoffs. Another Salomon Brothers company is under investigation by the U.S. government for submitting false national debt quotes, and it has no time to worry about it.

The remaining Goldman Sachs, Morgan Stanley and Merrill Lynch were the M&A advisors for the transaction between Li Xuan and the Express Group. Li Xuan's acquisition offer to Express is as high as 3.5 billion US dollars. Operating such a huge transaction can easily make these companies hundreds of millions of dollars in revenue.

In the face of such huge interests, they did not mind that Li Xuan would become their competitor in the future by acquiring Hilson-Lehman Brothers.

In addition to getting these investment banks, Li Xuan also offered a lot of money for several major commercial banks in the United States! In order to successfully acquire Hilson-Lehman Brothers from Amex, Li Xuan decided to raise $5.5 billion.

Among them, in addition to Jiahua Bank, which will provide 500 million US dollars in credit, the remaining 5 billion will all be loaned to the five major banks in the United States. Citibank provided 2 billion, and Bank of America, American Hua Bank, Chase Bank, and Morgan Bank each provided $1 billion.

Li Xuan will soon let Oriental Game Company go public in the United States~www.readwn.com~ By reducing some of its shares as new shares required for listing and issuance, he can raise enough funds to repay. Therefore, Li Xuan's loan with Dongfang Game Company's stock as collateral is a good deal with extremely low risk for these American banks!

Getting Wall Street off the ground means the Fed won't get in the way when it reviews the acquisition. And Li Xuan, as one of the biggest sponsors of Bush Sr., will naturally get green light treatment in the government, but the most difficult thing is to control the US Congress in the hands of the Democratic Party.

Fortunately, Li Xuan has spent a lot of money on Democratic congressmen over the years. He has many more friends on Capitol Hill in Washington than when he acquired RCA. What's more, apart from his own efforts, there is no reason for acquisition consultants like Goldman Sachs not to help.

Goldman Sachs Chairman Robert Rubin has a lot of connections in the Democratic Party. If Goldman Sachs wants to become the lead underwriter of the next IPO of Dongfang Game Company, he must show his value to Li Xuan!

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