In the living room of the manor, Yang Dongxu held all the assets of Lehman Brothers and believed the report, his brows furrowing deeper and deeper.
Although the situation of Lehman Brothers has been predicted, after all, he is also one of the driving forces behind the scenes.
But what he didn't expect was that after changing his identity from a promoter to a defender of Lehman Brothers, things were far more difficult than he imagined.
First of all, if the avalanche starts, Lehman Brothers' debt ratio will reach a maximum of about US$500 billion. This is still a conservative estimate.
If the situation becomes extremely bad and the market continues to deteriorate and the assets held by Lehman Brothers further depreciate, then his replication rate is likely to reach a terrifying figure of more than 600 billion US dollars.
With such a huge debt, even if Yang Dongxu threw all his worth into it, it wouldn't be enough to fill the hole. Such a bottomless pit can only be saved by economic powers such as the United States, China, and Europe using national banks to save Lehman Brothers.
At the same time, the current situation of Lehman Brothers is far more complicated than imagined. As the fourth largest investment bank in the United States, Lehman Brothers was called the best investment bank in the world from 2000 to 2002.
Whether it is the funds operated by investment banks or the complexity of various forces, the complexity is far beyond Yang Dongxu's imagination.
For example, financial groups involved in financial business include the Bank of England, AIG, Goldman Sachs, Morgan Stanley and other financial groups.
Listen clearly, these are the world's leading financial groups, not individual investors, and Lehman is deeply involved with each of them.
In addition, there are several small and medium-sized banks and investments, as well as individual investors and so on. The entire Lehman Brothers is now a hornet's nest, the kind that would cause absolute chaos in the world.
In addition to the collaborators from the outside world who are entangled like a tangle, and various interests tied up.
Lehman Brothers is also not peaceful internally, as a long-established consortium with a history of 157 years. Lehman Brothers can be said to have a long history.
Like other consortiums with the same long history in the United States, it can be said that they are not far behind in history.
However, it is different from other consortiums that have an orderly inheritance and still control the power of the consortium in the hands of their own family even if they encounter setbacks.
For example, even though the Little Jack California Consortium is half-dead now, its power has still not fallen into the hands of others.
But the situation inside Lehman Brothers was complicated before 1973. This consortium is still a family consortium, that is, the entire consortium belongs to the Lehman family.
However, when Robert, the head of the Lehman family, passed away in 1969, a leadership vacuum was left for the entire consortium. Coupled with the economic downturn at the time, the Lehman consortium almost collapsed.
In 1973, Bell & Howell Chairman and CEO Pete Pitson was hired to start saving Lehman Group.
That is to say, although the consortium's operating conditions have become better year by year since this year, the Lehman family's control over the consortium has become weaker and weaker year by year.
In the end, the entire Lehman Financial Group was occupied by various forces at the top, like a joint conference. There was no one person who had a clear final say. Many things had to be discussed in meetings, and everyone expressed their opinions before the final decision was made through voting.
In other words, if Yang Dongxu wanted to cooperate with the Lehman Group, he could not have an in-depth discussion with the two current heads of the Lehman family and then finalize a rough cooperation framework.
This requires going to the board of directors of the Lehman Group. It is still unknown whether a group of old men and women can come up with a decision after all kinds of quarrels.
This is also the reason why many American consortiums look down on the Lehman Consortium. After all, the entire family is about to be forced out of the core of the consortium, and it only has the reputation of the Lehman Consortium.
If 1973, the time when Peter was hired into the Lehman Group, was taken as the end of the family control period in the Lehman Group.
The management of this consortium, which is like a parliament and has various forces, is only 34 years old now. In the eyes of many traditional, established and powerful financial groups, this is just a brat.
A little kid has a huge amount of wealth. It's hard not to be greedy. Joining forces to carve him up has long been a certainty.
And in another time and space, if you carefully look at the Lehman Financial Group from its peak to its complete decline and filing for bankruptcy, you will find that almost the entire United States, and even all major forces in Europe and the United States are playing him.
For example, when the subprime mortgage crisis broke out, Fannie Mae, Freddie Mac, Bear Stearns and other companies were also in the whirlpool.
U.S. officials claimed that these institutions were too large and could not be allowed to fail without affecting social stability, so they spent billions of dollars to rescue these companies.
When Lehman Brothers collapsed, they refused to bail out the company on the grounds that Lehman had too much debt and the government could do nothing.
And this is Lehman Brothers’ own fault. The government will not pay for this behavior. Instead, it will use Lehman as a negative example to alert others.
You must know that Lehman's application was flawed, and 20,000 employees were directly unemployed. The direct and indirect impact on social instability was greater than the combined impact of the bankruptcy of all companies including Fannie Mae.
As a result, the reason that the U.S. government used to bail out companies such as Fannie Mae that the collapse would have too great an impact on society was no longer applicable to Lehman Brothers.
The financial crisis caused by the collapse of Lehman Brothers spread around the world. Is this impact not big enough?
Another example is Merrill Lynch, the third largest investment banking company in the United States. When the U.S. government said it could not rescue Lehman Brothers, it was unable to do anything.
On the other hand, it announced that it would spend nearly 50 billion US dollars to acquire Merrill Lynch, which was also in the whirlpool. Let this third largest investment bank successfully go ashore.
And after acquiring Merrill Lynch, Merrill Lynch's stock price plummeted 21%. It lost one-fifth of its money and nearly 10 billion U.S. dollars just after buying it back, but the U.S. government looked indifferent.
Another example is the three giants that were most affected by the bankruptcy of Lehman Brothers: Goldman Sachs, Morgan Stanley, and American International Group.
At the beginning, it seemed that they were all affected by Lehman Brothers, and they looked precarious and might follow in the footsteps of Lehman Group and declare bankruptcy.
As a result, after Lehman Brothers went bankrupt, the U.S. government and the Federal Reserve took action again, first investing nearly 200 billion U.S. dollars to insure American International Group, the largest insurance company in Europe and the United States.
At the same time, Goldman Sachs and Morgan Stanley, both in crisis, made bank holding requests to the Federal Reserve Board. Lehman Brothers also made this request.
But the U.S. government helped Merrill Lynch, Fannie Mae, Freddie Mac, Goldman Sachs, and Morgan Stanley, but it rejected Lehman Brothers.
Allocating some of the money to help these people to Lehman Brothers can help him tide over the difficulties. You must know that before Lehman Brothers filed for bankruptcy, it still had a lot of high-quality assets. After all, this was a consortium and the best investment bank in the world in 2002.
An even more dramatic scene was before Lehman Brothers went bankrupt.
U.S. Treasury Secretary Paulson, Securities and Exchange Commission Chairman Cox. As well as senior executives from Citigroup, **, Morgan Stanley, Goldman Sachs, Merrill Lynch and other companies gathered at the New York Federal Reserve Bank headquarters in Manhattan for three consecutive days.
It is said that it is studying how to rescue Lehman Brothers, which is facing bankruptcy, in order to prevent the credit crisis from worsening further.
Don’t you think it’s funny? Goldman Sachs, Morgan Stanley, and Merrill Lynch, which were implicated by Lehman and still in the vortex of the subprime mortgage crisis, looked like they were about to go bankrupt, but ended up standing there. The savior side said it would save Lehman Brothers.
The result of the study is that Treasury Secretary Paulson opposed the use of government funds to rescue Lehman Brothers from its financial crisis.
Before their study, Barclays, the third largest bank in the UK, was prepared to assist Lehman Brothers because it held a lot of Lehman Brothers bonds, and would suffer a lot if Lehman Brothers went bankrupt.
At the same time, Lehman Brothers is definitely worth saving. After all, this is a complete consortium. After the rescue, Barclays Bank will make a lot of money by controlling this consortium.
As a result, both parties originally entered negotiations, and the US Treasury Secretary announced that he refused to rescue Lehman Brothers. Then Barclays pulled out of bailing out Lehman Brothers. This caused the market value of Remai Brothers' stock to drop by 94%.
At the same time, the Bank of America is also interested in Lehman Brothers in this negotiation and is preparing to join the Bank of America in rescuing Lehman Brothers.
After Barclays announced it was withdrawing from its bailout of Lehman Brothers. Bank of America did not hesitate to follow suit, and then three hours later, it acquired Merrill Lynch, pulling this little brother directly out of the whirlpool.
Then Lehman Brothers sued Morgan Stanley, accusing the other party of illegally extracting billions of dollars from Lehman Brothers' assets just before he filed for bankruptcy.
At the same time, he was working with Lehman Brothers, Goldman Sachs, and Morgan Stanley. Both companies appear to be losing money, but in fact they are both making profits.
As a result, now all the debts are borne by Lehman Brothers, and Goldman Sachs and Morgan Stanley, which originally seemed to be implicated and almost went bankrupt, are secretly making a lot of money.
However, this accusation was dropped in the end. After all, after the bankruptcy, Lehman Brothers did not have the capital to clamor with these two companies.
In the end, Lehman Brothers completely went bankrupt and turned into a carve-up feast. Nomura Holdings, Japan's largest securities company, acquired Lehman Brothers' businesses in Asia-Pacific (except South Korea), Europe and the Middle East, and finally bought its Indian business.
EDF, a unit of French power giant EDF, acquires a subsidiary of Lehman Brothers
Then private operating capital BCL and HF invested US$2.15 billion at a bargain price and took away almost all the investment management business of Lehman Brothers.
From then on, a once-prominent American conglomerate was dismembered and fell into pieces.
As a result of the entire subprime mortgage crisis that affected the world, Lehman Brothers took over everything. At the same time, the major financial groups also took advantage of Bear Stearns as a dessert.
So to sum up the whole story of the bankruptcy of Lehman Brothers in another time and space, Yang Dongxu wants to stand on the side of Lehman Brothers and fight against not only a few established consortiums in the United States.
Instead, they are hostile to almost all of Europe and the United States, plus Japan and other consortiums.
Dealing with an American consortium is enough for him to have a headache. If several of them join forces, he has no chance of winning. Plus other European and American consortiums, Japanese consortiums...
Yang Dongxu suddenly felt like he was still wearing new clothes, holding a small wooden sword in his hand and had just come out of the novice village, and was about to face the final boss of the game.
And what he faced was not the ultimate BOSS, but a group of consortiums that stood at the top of the pyramid in this world.
"What a joke!"
Yang Dongxu pinched his eyebrows and threw the information in his hand on the table in front of him.
