Lu Fei and John Paulson have a clear division of labor.
Morgan Stanley, Lehman, JPMorgan Chase and other investment banks were owned by John Paulson, and Lu Fei personally greeted Bear Stearns, Merrill Lynch, and Goldman Sachs, the group of accomplices who shorted Penguin and shorted CDS.
At this time, it was extremely embarrassing to meet again.
Lu Fei was sitting in the small private room of the Links Club with a cup of coffee in his hand, looking directly at the dark-faced Sonnier opposite.
I saw him grinning, showing his white teeth:
"Lu, you know me. When it comes to CDO quotations, Merrill Lynch offers the highest price, and CDS prices are also the highest on the market!
I dare say that no other investment bank can offer a more reasonable price than ours! Absolutely not! "
"Why should I sell it to you?"
Lu Fei put two sugar cubes into his coffee: "Can the money you pay compare with CDS's compensation of more than ten times? It can't be compared!"
He said, stirring slowly with a silver spoon, "O'Neal, you'd better give me an offer I can't refuse."
"Lu, don't you like Marvel superheroes?"
Sean O'Neill urgently needs a large number of CDs to hedge Merrill Lynch's backlog of CDOs, and tried his best to remain calm when he spoke:
"Merrill Lynch can transfer all the other IPs mortgaged by Marvel to Trisolaris at a 95% discount. You only need to pay Merrill Lynch the equivalent swap contract. What do you think?"
"That's not a condition at all."
Lu Fei shook his finger: "Have you forgotten, the contract between us clearly states that once Merrill Lynch's rating is downgraded, it must pay collateral to Trisolaris. According to the terms, IPs such as Thor and Captain America The mortgage right should belong to me!
Let me inform you now, remember to prepare for the handover. "
"you!"
Signorniel stood up, shocked.
When I paid the premium for CDS, I didn't take the additional terms seriously at all. I didn't expect to dig a hole here and wait for him!
In an instant, the guests around him all cast curious glances. Seeing Nico in a suit and leather tie losing his cool, he almost took out a gun from his arms and shot Lu Fei with a smirk on his face.
"O'Neal, sit down."
Lu Fei pressed his hand down: "Think, think again."
Sean O'Neill sighed: "Lu, just tell me directly, how do you want to sell CDs to Merrill Lynch?"
Lu Fei said lightly that Merrill Lynch was short Lehman.
"What?!"
Snow O'Neill was surprised that he let Merrill stab his ally in the back?
"I like to retaliate tooth for tooth, repay a hundredfold!"
Lu Fei shrugged, "Since you teamed up with Lehman to short Penguin, why can't you help me short Lehman?"
But all Wall Street veterans have flexible moral bottom lines. Sean O'Neill weighed the pros and cons and made up his mind——
Richard Fuld is my best friend and brother. If you short Lehman, you have to add money!
Want to talk to me about adding money?
Now you are begging me, not me begging you!
You are not qualified to stand in front of me and negotiate terms!
Lu Fei was not used to him and refused unceremoniously.
Sionnier became gloomy, and his already dark face turned purple. He gritted his teeth and tried to struggle, saying don't bully others too much. It's not just you and Paulson who have CDs on the market, others also have them.
"Please."
Lu Fei's lips curled up: "But I want to remind you that Merrill Lynch's recent acquisition of No. 1 Franklin seems to be in a similar situation to New Century Company, with a loss of more than 3 billion U.S. dollars."
Seeing the sudden change in Sean O'Neill's face, his cold tone was full of threats: "Of course, for a large company like Merrill Lynch with assets of 12 trillion U.S. dollars, 3 billion U.S. dollars is just a hair on the body, but to you It’s different.”
"Haha, why am I different?"
Signornier took a sip of coffee to calm down.
"During the last round of financial crisis at Merrill Lynch, the large-scale layoffs had already caused dissatisfaction from the whole company. I heard John say that they all called you the 'Black Satan of Wall Street'."
Lu Fei smacked his lips and said, "Zizi, how many layoffs will be required due to the crisis caused by your rashness this time? Maybe you can prepare a statement in advance to express your sympathy for the unemployed."
"Sympathy?" Sean O'Neill frowned.
"That's right, you're about to join them."
The corners of Lu Fei's mouth turned up: "Do you think you can still find another job on Wall Street?"
"Uh uh uh……"
Sionil's tongue was tied, and he felt that his soul was immediately hit by 100,000 points of critical damage, and cold sweat kept flowing down his face.
"It's not easy for a Nico, a Nico with a successful career, to become the CEO of one of the top five investment banks on Wall Street, right?"
Lu Fei's joking tone was somewhat mocking.
"Gulu, Gulu~"
Signor O'Neill hurriedly drank the coffee in one gulp, and said with bitterness in his mouth: "Lu, please, help me!"
"We Chinese like to help our friends."
Lu Fei smiled broadly, "And he likes to turn enemies into friends. Although you instigated Merrill Lynch to go against me, I can give you a chance. O'Neal, are you willing to be my friend?"
"Yes, of course I do!"
Si O'Neill said excitedly: "Pay Ruan Ende for it!"
"But you have no respect for my friend."
Lu Fei glanced at him. He had been talking about the knife from just now to now. He didn't even say a word of "I'm sorry" to me. How arrogant!
"Lu, Sao Rui, I was wrong, I was really wrong."
Signor O'Neill apologized repeatedly, and at the same time vowed to abandon the dark side for the bright side, and was willing to switch sides and stab Lehman in the back.
"Very good, these are friends."
Lu Fei smiled and handed over his business card, "As a friend, I know that Merrill Lynch is short of cash right now. It just so happens that China has formed a financial syndicate that may be able to save Merrill Lynch."
"Really!"
Si O'Neill looked at the "CICC Financial" written on the business card and was overjoyed: "Lu, I will immediately ask someone to hand over the mortgage rights of the remaining 8 Marvel heroes! There is also shorting Lehman. You tell me how to do it, and I will do it." Merrill Lynch will do its best to cooperate."
"cheers!"
Lu Fei drank coffee instead of wine.
Snow O'Neill cares about neither Lehman nor Merrill Lynch. He is only thinking about how to maintain his current position as Merrill Lynch's talker.
In one morning, the two parties reached a large CDS order worth US$630 million, and good news also came from John Paulson.
It is true that Wall Street's demand for CDS is too strong.
Basically, selling dishes and selling CDs is also selling favors.
Coupled with the closing of short positions on the abx index, the two of them pocketed US$2 billion in one day alone.
In the evening, the setting sun shines on the window table of Martha's restaurant.
David Solomon, who was sitting opposite Lu Fei, appeared on behalf of Goldman Sachs and brought Treasury Secretary Henry Paulson to show his sincerity.
He is supporting the Goldman Sachs system, especially because——
"Lu, are you sure you still want to short Lehman?"
"Of course, Richard turned down our offer."
Lu Fei said disapprovingly: "John wanted to invite him to dinner, but he didn't agree. If we can't be friends, then we are enemies."
"As I understand it, Richard went to Asia."
David Solomon smiled and said: "It's either neon or a stick."
"No matter where I go, I don't want to have this meal with Fuld anyway, not because of money, but because of my mood."
Lu Fei cut a piece of beef tartare dipped in caviar.
"Well said! You must retaliate tooth for tooth, blood for blood!"
Henry Paulson looked at him meaningfully. I'm happy if you can help Goldman Sachs. I'm even happier if you can help Goldman Sachs take revenge on Lehman. In short, no matter who is doing Lehman, he will definitely help.
"But……"
David Solomon was in trouble. Although Lehman's stock fell by more than 30%, when its first-quarter financial report was released in a manner that was better than market expectations, with earnings of $0.81 per share, it promptly saved the stock price that had plummeted continuously and rose that day. 46%.
Lu Feidao: "I very much doubt the credibility of this report. Lehman did not fully disclose subprime-related assets."
“It is impossible for an investment bank’s core financial data to be made public, but I support your suspicion!”
David Solomon raised his glass high. It took Goldman Sachs more than two months to completely turn from bull to short. Naturally, it had to strike hard at Lehman, the main force in the subprime bull market.
Besides, there is also deep hatred!
"What about CDs insured by Lehman?"
Lu Fei clinked his glasses.
"$1.06 billion is $1.06 billion!"
David Solomon and Henry Paulson looked at each other. Although Goldman Sachs was also selling CDS, giants like Bear Stearns, Merrill Lynch, and Lehman held most of the CDS in their hands.
Wall Street has always been "too big to fail".
Just like the thunderstorm of Evergrande Real Estate, once it declares bankruptcy, it will cause systemic risks to the entire real estate market. It may be like the subprime mortgage and the entire real estate collapse.
Therefore, even if zhengfu is not saved, he will be saved!
That’s why they were so emboldened, spawning a horrific financial bubble that combined subprime mortgages and p2p.
"As a friend, I put my words here. If Goldman Sachs encounters a stock price crisis like Lehman, you can come to me at any time."
Lu Fei said sincerely: "I will not sit back and watch my friends suffer."
"good, very good!"
Henry Paulson smiled with satisfaction: "Cheers!"
With a ding, the wine glass made a crisp sound.
At the happily dining table, the three of them looked at each other, their eyes flickering, and they almost invariably thought of——
We drink from the golden cup together, but we will not spare each other with the white sword.
………………
April 12, Bangzi Shilla Hotel.
Richard Fuld has stayed for five whole days, waiting all the time for news from Bangzi Industrial Bank.
The world's top financial circles are only so big. It is simply delusional to expect local banks to escape this short subprime mortgage winter.
Nowadays, everyone is in danger and thinking about how to survive.
With no choice, we can only place our hope in the East.
The reason why Bangzi was chosen as the first stop was because the president of Industrial Bank, Min Yusheng, had been his subordinate at Lehman.
"How about it, are there still so many protests at the door!"
He frowned and asked the secretary feebly.
"As soon as the quarterly report was released, some people dispersed, but there were still many, many people who gathered early in the morning, so the police had to suppress them."
The secretary's voice on the phone was very weak: "Richard, in order to produce eye-catching financial statements, we now rely entirely on bonds No. 105 and 108. The current cash reserves are no longer enough to fight on the third front. If the stock price continues to fall, , Lehman’s stock will collapse, and we’ll be doomed!”
"Min is already persuading the board of directors of Industrial Bank to buy our convertible preferred shares, which can raise US$3.5 billion!"
Richard Fuld then asked about CDO sales.
Today's CDOs have become poisonous sugar pills, and investment banks such as Lehman are trying their best to sell them to investors in Europe and Asia.
"We can't sell Goldman Sachs and Morgan Stanley in Europe."
The secretary breathed out and said: "Fortunately, the middle-class idiots in Xiangjiang are willing to inhale these toxic assets, and many celebrities and businessmen have bought our accumulated options..."
"No matter how big Xiangjiang is, how big can it be!"
Richard Fuld said anxiously: "The key is the mainland!"
"No, according to reliable internal information, China's government strictly prohibits any financial institution from purchasing CDOs privately. Goldman Sachs plans to sell it to China's state-owned enterprises, but it is simply not feasible,"
"Fake, it must be Lu Dao's fault!"
"Richard, I think we should agree to Lu and Paulson's invitation. If we can reconcile..."
"No way! No way!
"
Richard Fuld said angrily: "Even if I jump from the Lehman Tower, I will never bow to this bitch!"
At this moment, there was a knock on the door.
Min Yusheng and his secretary both appeared at the door, bringing good news. The Industrial Bank was secretly in contact with Bangzi Chaebol and financial groups and could form a financial group to save Lehman.
"Really! Then let's go!"
Richard Fuld was so surprised that he immediately set off for the Industrial Bank with the Lehman executives who were accompanying him.
As soon as they entered Seoul Street, everyone in the group was dumbfounded.
The road has been blocked, and the streets are full of angry people shouting, holding candles and holding banners.
"What are they protesting about?"
Looking out the window, Richard Fuld's face was filled with confusion. Although he didn't understand what they were yelling at, he still had a feeling of embarrassment all over his body.
"American cow, get out!"
Min Yusheng's secretary said something coldly from the side.
Suddenly, the atmosphere in the car became awkward.
Damn it, Lu, a Chinese, just wants to deal with me!
How dare you guys be so rude to me, Zheng Xingqi?
Richard Fuld's face was gloomy. According to his previous fiery temper, he had to make this secretary kneel down and admit his mistake!
Unfortunately, now, the situation is stronger than the people.
He wanted to ask for help from others. Although Min Yusheng was his subordinate before, he is now Lehman's great savior.
Richard Fuld shook his head and sighed. As a Jew, he wrote down the secretary's account, and even put the account on Lu Fei's head.
If it wasn't for damn Lu Fei, I would be in such a mess!
It’s all Lu Fei’s fault!
Min Yusheng glared at his secretary, rubbed his hands, not wanting to embarrass his old employer, and explained embarrassingly that he was demonstrating.
The co-author is to resume the import of American beef. Because of the history of mad cow disease, the line platform launched an online petition.
Unexpectedly, as the anger spread from online to offline, more than 40,000 people came to the streets of Seoul, all the way from Hyoja Street and Gyeongbokgung Palace to the Blue House, forcing the police to form a human wall.
In an instant, a melee broke out.
"line?"
Richard Fuld wondered.
"Yes, it is a very, very powerful social networking site that has covered 11 countries and regions in Asia and has hundreds of millions of users. We have always wanted to invest in it, but it is a pity."
】
Min Yusheng sighed.
"Are there any companies that refuse your investment?"
"Of course, the founder of line is Li Yinxin, the third lady of Samsung, and the largest shareholder behind it is Penguin!"
"penguin?!"
Richard Fuld's expression changed.
Damn it, Lu Fei, why are you everywhere!
Min Yusheng smiled and said: "But fortunately, we have found a new cooperation opportunity. Industrial Bank will join Line's online payment, called 'Caifubao', 'Tenpay'..."
"Ding Lingling, Ding Lingling~"
Just when there was a traffic jam, Richard Fuld received a call from the vice president of Lehman. He was in a panic and urgent——
Traders such as Merrill Lynch, Goldman Sachs, and Morgan Stanley are spreading rumors that Brehman has falsified his financial reports.
They even cooperated with Lu Fei and John Paulson to short Lehman. Many small and medium-sized funds, such as Greenlight Capital, immediately followed the footsteps of the "god of short-selling" and "god of investment".
Whoever wins, who do they help!
There is a strong tendency to fight until Lehman is overthrown!
"Watt! Falk!"
Richard Fuld completely broke his defense and cursed loudly.
We are from the same roots, so why are you so anxious about fighting each other? They are both global giants of Jewish descent. You don't help your own people, but you all help Lu Fei?
A Chinese?
"Richard, has Industrial Bank agreed to buy my Lehman shares? We need money! We need to save the stock price!"
Listening to the shouts of the vice president, Richard Fuld couldn't sit still at all. The Industrial Bank of China is now the savior.
As if I was in jail, I finally arrived at the bank by car.
However, what made his heart suddenly freeze was that the Industrial Bank’s plan was almost exactly the same as that given by China CITIC——
I don't care about worthless stocks at all.
You can ask for money, but you have to exchange it for high-quality assets!
For example, 20% of Bloomberg.
"Min, didn't you say you would buy Lehman shares?"
Richard Fuld's eyes were wide open and full of anger.
"There's nothing I can do."
Min Yusheng smiled bitterly.
"You are the president, why can't you do anything?"
In Richard Fuld's eager eyes, he looked forward to his old subordinate, now his savior, showing mercy.
"Sauri, I can't decide whether to buy assets or stocks. This is the collective will of the financial group."
Min Yusheng's face was full of helplessness, "Unless you can convince the bank that proposed this proposal to change their mind."
"which bank!"
"Industrial Bank and Hansung Bank."
"Then you should quickly make an appointment with their bank manager..."
"It is useless to invite them. We must invite Chairman Li Jianxi or Ms. Li Fuzhen."
Min Yushengzhi said that the biggest backer behind the two companies is Samsung, and about half of the financial group has joined the online payment network woven by Caifubao and Tenpay.
"This this……"
Richard Fuld couldn't help falling silent.
Lehman needs money, but as a last resort, this money must not be exchanged for valuable assets. Even if it is exchanged, it will not be from Bangzi's financial group, but from a syndicate formed by China.
The price offered is higher!
The conditions for opening are better!
Somehow, he seemed to be forced to sell it to China at a low price.
Isn't this too much of a coincidence?
"Sauri, I'm sorry."
Min Yusheng had a ray of light on his back and didn't know how to deal with it.
"American cow, get out!"
Accompanied by the roar of the parade, Richard Fuld's face twitched, full of pain and disappointment:
"Tell Paulson that I will treat them to dinner when I return to China."
They?
Whether it was Min Yusheng or Lehman executives, they all thought of the same person. Perhaps not saying the name "Lu Fei" was the last sign of Richard Fuld's stubbornness.
