Speaking of which, Lehman Brothers is really unlucky.Lehman Brothers was in crisis last year, in September 2007.Seven years ago, on September 11, two planes crashed into the World Trade Center in New York, the headquarters of Lehman at the World Trade Center.Seven years later, on the same day, Lehman's share price fell below $4 per dollar, and it was once again a matter of life and death.At the end of 2007, Lehman's total assets were worth about US$700 billion, and the company's net value after deducting various liabilities was about US$20 billion, with a leverage ratio of 35 times.And this year, that is, in the first half of 2008, Lehman's mortgage asset problem was gradually exposed, and the loss may reach 10 billion US dollars, and the company lost its capital, becoming a net value of 10 billion US dollars to support 690 billion US dollars in assets, and the leverage ratio suddenly soared to nearly 70 times.At this time, Lehman was already in danger, and if there was a little trouble, Lehman would fall down.At this time, the Korea Development Bank, also known as KDB, which is far away in East Asia, was willing to inject capital into Lehman.As soon as this news came out, Lehman's stock price immediately stabilized.The main reason why KDB is willing to pull Lehman Brothers at this time is because the CEO of KDB used to be the head of Lehman Korea's branch and has a lot of affection for his old employer.At that time, KDB was willing to pay $26 a share, while Lehman insisted on $28.Dick Ford, the head of Lehman Brothers, is really reluctant to "sell cheaply", after all, Lehman is quite profitable, with a profit of $4.2 billion in 2007.But that's exactly the terrible nature of mobility – what's the use of you showing off eight-pack abs when the air is running out.As a result, the long-dragging deal finally dragged out problems.On September 7, 2008, the U.S. government abruptly announced that it would take over the two houses, inserting $200 billion in preferred equity investments into their capital structures.The next day, South Korea's financial regulator expressed its opinion in an oriental euphemism: "KDB should be extremely cautious about the issue of capital injection into Lehman." ”KDB immediately issued a statement terminating negotiations with Lehman.As a result, Lehman's stock price plummeted, and what was even more fatal was that no one had borrowed from Lehman, and liquidity was about to be cut off.Looking around, Goldman Sachs and Citi themselves are difficult to protect, and they have just eaten Bear Stearns and will not be interested in Lehman, which is in a similar situation.There are only two blind dates left, the Bank of America, which was born in a commercial bank and is relatively simple and honest, and Barclays Bank from Great Britain.That weekend in mid-September 2008 was an ordinary holiday for many people on the planet, but it was an existential moment for Lehman.Before this, Bank of America and Merrill Lynch had been eyebrows for a long time, Merrill Lynch looked at the mortgage assets on his books, and knew in his heart that if Bank of America bought Lehman, then the next short-selling target of this financial vulture would be himself.Bank of America is also unforgettable, sitting at the negotiating table and talking to Lehman, but always aiming at Merrill Lynch.Can this be delayed?
Without further ado, Merrill Lynch decisively got into his delicate body and took the room card handed over by Bank of America at the bottom of the table.Upon learning of the good fortune of Merrill Lynch and Bank of America, Treasury Elder Paulson was overjoyed and ordered both parties not to hesitate to complete the merger.That weekend, Paulson Sr. summoned all the executives of Wall Street giants to the Federal Reserve Building, and did two things: first, following the example of the 1998 LT crisis, let Wall Street set up a rescue team to buy Lehman's troubled assets, and then the acquirer bought the remaining assets of Lehman; Second, finalize the deal to acquire Lehman.Does Goldman Sachs dare to demolish the old leader's platform?
Definitely don't dare.So, things went surprisingly well for the rescue team.Lehman was on the verge of being saved, but the merger case was stuck in a seemingly inconspicuous subsection: Barclays was a British bank.Originally, according to UK regulations, mergers and acquisitions must be voted on by a general meeting of shareholders before they can be counted.This is no different from US regulations, but the following clause is fatal: until then, Barclays could not guarantee the Lehman Brothers deal, as it would constitute a "substantial merger".Shareholder voting will take a few days at the earliest, during which time Lehman will still have to open its doors, and if investors continue to withdraw their investments, Lehman will likely not survive the merger and will go bankrupt because the deal cannot be settled.Once, when Paulson Sr. persuaded Dick Ford, the latter replied, "I have been at the helm of Lehman Brothers longer than you have been at Goldman Sachs", and the meaning is very clear, you are a hair!
So some people said afterwards that it was because of Forder's usual arrogance that completely angered Paulson Sr.Others say that Paulson Sr. just wants to set an example and teach greedy Wall Street a lesson.In short, Paulson Sr. made it clear early on that he didn't want the government to pay for Lehman.Hmph, Lao Tzu just wants to treat you as the chicken of the monkey, what can you do with me?
You fucking sister dare to say that old paper, the old paper doesn't kill you!
But the old Paulson still has to do the face-saving work, he asked the British regulator to exempt the relevant regulations, but the British shook his head like a rattle: we have enough troubles in our own financial system, to open the back door to save the American investment bank?
No way!
Now old Paulson has something to say, see, I'm not a big deal, I'm going to beg the British for Lehman But when Barclays persuaded the U.S. government to change its mind, at this time, the old Paulson's attitude was very resolute - our country's financial system cannot be easily destroyed Ah, the implication is very clear, no way!
As a result, the fate of Lehman Brothers as a chicken can no longer be changed, and the 158-year-old Lehman Brothers has finally come to the end of his life.And the bankruptcy of Lehman Brothers finally made the subprime mortgage crisis rise into a global financial crisis!
The brutality of the financial markets was vividly demonstrated in the subprime mortgage crisis.None of this has anything to do with the Dragon Fund, though.With John Paulson in front and large investment banks such as Bear Stearns, Merrill Lynch, and Lehman Brothers in the back, the elder Paulson didn't have the energy to do these things, even if he had the heart to dig deep and investigate.Not to mention, by January next year, Okuhei will come to power, and Paulson's journey as finance minister will be completely over.He also checked a p!
Yang Jing knew these things clearly, but he couldn't say them now.However, fortunately, the dragon fund performed well enough in the subprime mortgage crisis, and made enough profits under the condition of ensuring concealment, which is enough.As for John Paulson, although he also made a lot of money in the subprime mortgage crisis, a full $20 billion, and was called the "empty god" by later generations, the little money earned by the Paulson Fund really did not let the Dragon Fund take it seriously.It's only $20 billion, not even a fraction of the profit of the Dragon Fund" Okay, let's not talk about that. ”Yang Jing clapped his hands, raised his glass again and said, "The Olympic Games will be held in Yanjing, China next month, guys, are any of you interested in going to see that grand event with me?"
”Henry and the three of them also raised their wine glasses, and after touching and drinking with Yang Jing, Henry smiled and said, "Boss, do you want to go for a break?"
”Yang Jing shrugged his shoulders noncommittally, "I've been busy for so many years, it's time to give myself time to relax."
People, you can't always be as tight as a bowstring, and a proper relaxation is good for the body.By the way, Mike has already agreed to my invitation, and he will fly directly to Yanjing next month, where we will meet.Guys, who of you would like to come with me to the Olympics?
”Henry looked at both sides, hesitated slightly, and then raised his hand and said, "Count me in."
I think these little guys are ready to go out of school, so I'm going to give myself a vacation. ”Cesar grinned, "How could such a good thing leave me?
I'll go too. ”Yang Jing looked at David, and David shook his head and said, "Boss, I think I'm still staring here."
There needs to be someone sitting here.And I'm not interested in the Olympics, so you can just watch it. ”Yang Jing looked at the three of them, and finally smiled and said, "Okay, let's meet in Yanjing next month!"
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