We are all reborn, who wants to be the richest man?

Chapter 687 Big Chess
"George, I told you we were best friends, and you're probably right.

My relationship with the elephant and my relationship with you cannot be confused."

After nine o'clock in the evening, after Welch and Robert finished dinner at Luo's house and left, Luo Nianzhong went to the study and called Little Cowboy.

“Okay, Luo.

I admit that I was wrong this time. I was a bit too cautious.

When will you come to the United States? We haven't been together for a long time."

"Not right now, but when you reach that position, I will be there to congratulate you in person."

There was silence on the phone for a moment before the cowboy's voice came through.

"Luo, no matter what camps or positions we are in the future, we will always be friends."

"Of course." Luo Nianzhong laughed out loud, "Don't forget that we know each other's strengths and weaknesses and are honest with each other."

Who doesn’t have a youth? Thinking about how crazy we were back then, it seems like just yesterday.

"I really miss that pure time."

Is it pure? Not at all. Both sides have their own purposes.

Luo Nianzhong hopes to gain political influence in the United States through Little Cowboy so that the Far East Group can develop better. Little Cowboy wants to get close to this new money that has just gained a lot of fame and help his father's election.

However, considering their current prominent positions, deep factions and complex identity backgrounds, they undoubtedly seemed particularly innocent and simple in the past. No wonder the little cowboy deeply missed and cherished those good times.

But now returning to that kind of life has become a luxury. Luo Nianzhong can do it, but the little cowboy can't at all.

Now his every word and action is exposed to the media. This is the price he must pay to go down this path.

"When you retire, we can go fishing and play ball together."

"hey-hey".

The little cowboy knew what fish Luo Nianzhong was talking about and what ball he was playing with.

"Well, thank you anyway, and please let me know if there's anything I can do to help you."

There is no free lunch in the world, especially for people like them.

It's good enough that they can fulfill their promises. Do you still want to get something for free? That's wishful thinking.

This is also why Elephant asked Luo Nianzhong to name a price, to see if they think it is worth it to get the full support of this tycoon.

Election, haha.

Many people don’t know that every election is a time for top powerful people to reap wealth.

So much campaign money has to be spent. How to spend it? Most of it is in the media industry.

In the United States, the media industry is controlled by top dignitaries.

Capital is greedy, and they will not be willing to take out what they have taken in.

But Luo Nianzhong is different. He is willing to spend money on this kind of thing.

The dream of becoming a superpower allows everyone to enjoy this time, and reaping the benefits is everyone’s goal.

This short-sightedness allowed Luo Nianzhong to seize the opportunity, so the elephant and the donkey did not dare to give up this foreign financial sponsor.

"As you know, the Far East is a huge industry that creates millions of jobs for the United States every year.

I hope that the lower class people in the United States can earn more money and improve their lives.

I don't know about other places, but take the states near Denver for example. The people here are mainly engaged in agriculture, and the same goes for bank loans. Many young people with great ideas give up their entrepreneurial dreams due to lack of financial support.

It's not nice, we should give them a chance, shouldn't we?"

It’s still the financial industry. In the United States, the financial industry is the only one who has the right to speak.

The little cowboy also knew that what Luo Nianzhong said was bullshit. His goal was to acquire banks in several states surrounding Colorado.

Although an agreement had already been reached for the Luo family's financial industry to enter the Five States, acquisition and development was not so smooth.

The enactment of the "Foreign Bank Supervision Enhancement Act" and the "Federal Deposit Insurance Corporation Improvement Act" in 1991, although we know that history will have this time, it is hard to say that this time it has nothing to do with restricting the Luo family.

First of all, foreign banks can no longer handle all kinds of business as they did before. They did not handle these things before.

Second, with regard to the deposit-taking quota, foreign banks cannot accept or hold deposit accounts with a balance of less than US$10.

But I have a plan. Didn't you block all users with less than $10? Then I will acquire your local bank to attract small depositors.

But just two months later, the Federal Deposit Insurance Corporation Improvement Act was enacted.

The other terms here are easy to understand, and they are related to the name.

But what does Article 5 mean? Any foreign bank that wants to acquire more than 25% of the shares of a U.S. bank must obtain prior approval from the FRB, which used to be a % baseline.

In the past, the 25% baseline was enough for Far Eastern Bank, Barclays Bank and others to become major shareholders in many small local banks, but this is no longer the case.

Okay, then I'll use the name of McKesson Financial.

After the two major local financial institutions in Colorado, Bank of Denver and McKesson Financial, were taken over, integration began.

Now, all the banks and financial institutions acquired by the Luo family in the United States are under the umbrella of McKesson Financial, and the major shareholder of this company is the Chris Fund.

But what can you do if they just don’t want you to expand? The federal law has been resolved, but the local government is not lenient with you, and many acquisitions have been delayed for various reasons.

Wall Street is a supporter of Donkey, but no matter how much Donkey wants to win over Luo Nianzhong, it is impossible for Donkey to give him an inch on this matter.

Therefore, even if La Zipperton was willing to help the Luo family, the earliest loyal followers of the emperor, it would not work. Luo Nianzhong did not even have such high hopes. He was already satisfied that the donkey did not take advantage of his misfortune.

These places whose acquisitions were rejected were all Elephant's core bases. Luo Nianzhong had no doubt that both parties were tacitly working to trip up the Luo family.

This was no secret, and the little cowboy knew it.

"McKesson Financial?"

"That's right."

"This is not something I can answer you immediately, and I can't make you a promise. I need to contact someone for you."

What connection is there? It's just that we need to talk to the elephant and weigh the pros and cons.

"Of course, but whether you can help me or not, we are all friends, and I will help you this time." The moment he hung up the phone, Luo Nianzhong raised his eyes inadvertently and found that Chris was sitting leisurely on the comfortable sofa diagonally opposite him.

Her slender figure, slim waist and plump buttocks, and her majestic beauty cannot be concealed even in a smooth and beautiful silk pajamas.

Especially the milky white skin that is as delicate and smooth as the first snow, with an attractive luster, as if you can feel the moisture flowing underneath with just a light touch.

Compared with the fair skin of Westerners, he shows a unique and gentle oriental charm, but this appears on a pure white person. Every woman who comes into contact with Chris for the first time feels incredible.

"When did you come?"

"When you talk about banks."

Chris's expression now was filled with fear and excitement. If he hadn't been afraid of disturbing Luo Nianzhong's call, he would have probably shouted.

"Your target is the Federal Reserve? That's crazy."

Pouring himself a cup of tea, Luo Nianzhong asked with interest, "Why do you think so? Your idea is very bold."

"Because I didn't walk in very quietly, which means you were concentrating on the phone.

The more relaxed your expression is, the more focused you are, and the thing that can make you so focused and nervous is obviously not the acquisition of a few small banks."

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Then Chris looked at Luo Nianzhong who was drinking tea, and said in a firm tone, "Your target is the Reserve Bank of Kansas City, your target is the FOMC."

What is FOMC? Its full name is Federal Open Market Committee, which is often referred to as the Federal Reserve management.

There are twelve people among them, and these twelve people are the real decision makers of monetary policy in the United States.

The U.S. dollar has the largest foreign exchange reserves in the world, and these twelve people have the final say on how many dollars to print and what the interest rate is.

If these guys suddenly decide to raise interest rates while eating their lunch boxes, hundreds of billions of dollars from around the world will flow back to the United States, which will have an impact on countries all over the world. You can imagine how powerful these twelve guys are.

Among these twelve people, seven are called executive members, including the Chairman of the Federal Reserve.

The chairman position is renewable for four-year terms, while the term of office for other positions is fourteen years.

These seven people are all appointed by the president and can take office directly after being approved by the Senate.

The remaining five seats will be held in rotation by regional Federal Reserve chairmen. Luo Nianzhong's goal is to find a way to push his own people to become regional Federal Reserve chairmen.

When talking about regional federal reserves, we have to talk about the structural composition of the Federal Reserve.

The full name of the Federal Reserve is the Federal Reserve System. Since it is a system, it cannot be a bank or an institution.

It is a system consisting of twelve regional reserve banks, which divide the United States into twelve parts. Each bank has its own jurisdiction and is responsible for managing all commercial banks within its jurisdiction.

The Kansas City Reserve Bank that Chris mentioned is one of these twelve reserve banks, and its jurisdiction includes six mid-state areas including Colorado, Nevada, and Ohio.

Here comes the key point, this reserve bank is neither state-owned nor private.

Because it is jointly controlled by thousands of member banks in the region, it can be said that the Federal Reserve is an institution controlled by a private bank, except that this private bank is a bank for the entire United States.

The highest level of management is the FOMC, and below that are the twelve regional reserve banks, each of which has nine board seats.

Six of them were nominated by local commercial banks, and three were nominated by executive committee members, so they can be considered official people.

What was this system originally designed for? To provide checks and balances.

Because the United States used to advocate free competition. How free was it? Any bank could print money.

At that time, banks issued their own banknotes based on collateral, and their credibility among the people was much stronger than that of the government.

But the government would certainly not be happy if this continued, and the bankers were unwilling to hand over the right to issue banknotes. In the end, the two sides discussed and came up with the structure of the Federal Reserve.

This framework extends from the FOMC to the local Federal Reserve. Each board of directors includes both bank personnel and government officials, with the main focus on checks and balances between the government and banks.

Since the underlying reserve banks are all controlled by commercial banks, the banks have more power than the government.

The top-level FOMC is mostly composed of executive members appointed by the government, who control the general direction of policy.

However, the government's policymakers at that time fell into a trap, that is, people in banks always consider the interests of bankers, but those appointed by the government may not be loyal to the country.

This can be seen from the fact that the Chairman of the Federal Reserve repeatedly confronted the President of the United States and did not give him any face at all.

“It may not succeed, but we have to try.

Fortunately, we have a huge influence in these states. As long as we can acquire enough banks and establish footholds in various states and cities, we are not without hope."

"Are you waiting for a stock market crash? But this is too vague and no one can predict it."

In order to gain a foothold in various cities and have enough voice and voting rights, it is necessary to invest in a large number of local banks.

Normal acquisition? You can’t even find the windows, let alone the doors.

Whether or not they are willing is one thing, but even if they are willing, the purchase price they offer will be astronomical.

Build it yourself? Forget it. The core of a bank is its reputation. No matter how big your company is, it is useless because it cannot be as popular among ordinary people as those small banks with a history of hundreds of years.

This is also the reason why those Wall Street giants can only make acquisitions and their banks cannot be spread across the country.

Therefore, if one wants to acquire so many small banks on a large scale, in large quantities and at a low price with the other party's willingness, one must wait for a stock market crash, and more than one of them.

Chris thought this was unrealistic, but that was something others, at least Luo Nianzhong, could predict.

Although history has changed, the nodes will not change, such as due to a stock market crash.

There must be external stimulation to pop the balloon, otherwise it will be difficult to wait for it to explode.

"That's right, it's the stock market crash. As long as the stock market crash comes, nothing is impossible."

There is another characteristic between local small banks in the United States, that is, mutual lending.

The Reserve Bank of Kansas City is not impenetrable if it is controlled properly.

This is also the reason why the little cowboy cannot make a decision. Although he would not and dare not think that Luo Nianzhong is heading for the FOMC, he knows that the Kansas City Reserve Bank is definitely Luo Nianzhong's target.

His idea was that the Luo family wanted to push someone onto the board of directors of the Kansas City Reserve Bank. Not only him, but also Elephant who got the news had the same idea.

In their opinion, this idea is crazy, so crazy that many people can't believe it.

FOMC? You wouldn’t even dare to dream about it.

But what they didn't expect was that someone was not only dreaming, but was also ready to take action.

(End of this chapter)