nashuaworldcup Chapter 416 The Bank of America cannot protect itself
Chapter 416 The Bank of America cannot protect itself
Upon hearing such a threat, Fuld confidently said:
"If we go bankrupt, will the authorities still refuse to save us?"
Most others had the same idea.
They are indeed confident and believe that if they fall into crisis, the financial department will definitely come to their rescue.
Lehman Brothers maintains approximately $250 billion in assets and corresponding liabilities with $7000 billion in equity capital.
Several other companies inevitably used leverage to expand in an extremely aggressive manner.
When you owe $7000 billion, you are the boss of the Federal Reserve and the official sector.
Therefore, the five major investment banks all behave like dead pigs who are not afraid of boiling water.
Seeing Fuld's arrogance, the Financial Secretary was so angry that he was speechless.
He immediately held a grudge against the other party.
Seeing that the other party was defeated, Fuld was still proud in front of his colleagues.
"Then you just watch Huanyu fall??"
Fuld certainly does not want to see this situation. The subprime mortgage crisis is getting worse. If there is another problem in Huanyu, Lehman Brothers will really file for bankruptcy protection.
Everyone else turned to him, hoping that he would make his attitude clear.
On this point, the five major investment banks have the same attitude.
"Director, you should find the creditors of Huanyu Real Estate. If the bank is willing to extend the loan or lend Huanyu Real Estate another sum of money, it will naturally continue to survive.
Didn’t you say that as long as short-term debts are resolved, Huanyu Real Estate can survive? "
Compared with the debt structure of Huanyu Real Estate, their five major investment banks are the most terrible, because most of their assets are long-term fixed capital, but most of their debts are short-term.
So they also think that if they can't survive, the government can help them and pay off their short-term debts.
The director was stifled by Fuld's words.
Since this guy entered the door, he has been choking him with words, which made him very unhappy.
Fuld is indeed a little unclear about the situation. It's good that you are an uncle, but the person sitting opposite you is also someone who wants to save face.
But the director quickly calmed down. He had more important things to do than getting angry with Fuld.
"You go back first, and I'll talk to you about your affairs later!"
The director thought for a while and decided to contact the new chairman of the Federal Reserve, Birkeland.
Birkeland also realized that his policy of raising interest rates was a bit radical, and he did not expect to face a real estate loan crisis as soon as he took office.
I cursed Greenspan in my heart for doing so much harm to others and leaving such a huge mess.
Also coming with him were more than a dozen big bankers from the beautiful country.
More than a dozen banks were also distracted by mortgage default insurance at this time.
Although each company has repurchased part of each other's contracts, the bulk is still in the market.
In particular, Citibank and Cayman Capital have issued an ultimatum and must pay the first phase of insurance claims of US$30 billion within three working days.
Citibank has decided to spend money to eliminate the disaster, but when I think about the second and third installments...
Citibank's stock will definitely be shorted as soon as next quarter's earnings report comes out.
Thinking of this, he couldn't help but get angry, and his two managers insisted on laughing at Michael for what he was doing, causing the short seller to retaliate.
Of all the savings banks, Citibank has the most to pay.
Michael and the other younger brothers of Cayman Capital are no longer what they used to be and are known as the rising new shorts on Wall Street.
They are highly sought after by investors and have made default insurance contracts the best-selling financial product today.
It is worth mentioning that both Proton Fund and Tiger Management failed to wait until the subprime mortgage crisis broke out before withdrawing from the stage of history.
The director found that after everyone sat down, the atmosphere was not much better than before.
Everyone looked gloomy, as if someone owed them trillions.
"Birkeland, I invite you here this time to talk about how to save Huanyu Real Estate. I hope that the banks can suspend debt collection on Huanyu and wait for housing prices to pick up..."
Birkland frowned when he heard this. This was another big hole left by his predecessor.
"We need to take a long-term approach to this matter. Director, why don't we take out all the accounts of Huanyu first and take stock of Huanyu's assets?"
"This request is not too much. I will ask them to bring all the accounts here, and you can participate in the audit."
But if you don’t check, you won’t know. If you check, you will be shocked.
Huanyu Real Estate remains the number one real estate company in terms of land reserves.
However, in order to reform the debt, the previous president Giltung sold some commercial real estate, leaving a bunch of real estate projects in progress...
It cannot be said that Gilton did anything wrong. If it had not been sold at that time, the crisis of Huanyu Real Estate would have already broken out, and commercial real estate was not a high-quality asset in their eyes at this time and would be difficult to realize.
Now, it will be even harder to sell.
Many bankers shook their heads when they looked at the accounts. They knew it was a bad debt, but they didn't expect it to be so bad.
They are all thinking about one question - does such a group still have any significance to save?
But if they don't save it, the money they loaned before will depreciate greatly.
There was a constipated look on his face.