1977: The beginning of the blind date with the daughter of the king

Chapter 652 What is a surprise?

"Hello, Vic, it's nice to see you again!"

At the Bank of America building in Los Angeles, James gave Li Changhe a warm hug.

Along with James's enthusiasm came a strong perfume scent, thankfully not too pungent, considering James's level of sophistication meant he used high-end products.

"James, I heard you have something to see me about. Do you have some good news to bring me again?"

After hugging James, Li Changhe smiled and asked.

“Of course, Vic, I think this is great news.”

After James gestured for Li Changhe to sit down, he looked at Li Changhe.

"Vic, would you be interested in becoming a shareholder of Bank of America?"

“I think you’ll have a lot of business to do in the US, so you’ll need a reliable bank partner.”

“Although our partnership is already very close, I think we might as well make it even closer.”

"After careful consideration, the bank's senior management and shareholders would like to invite you to become a shareholder of Bank of America. Would you be interested?"

After James sat down, he immediately told Li Changhe about the surprise he had prepared.

"Oh? You're inviting me to become a shareholder of Bank of America?"

After listening, a look of surprise appeared on Li Changhe's face.

This is indeed a big surprise.

As is well known, the United States values ​​financial sovereignty above all else, so the restrictions on foreign investment in the banking industry are beyond imagination. This results in US banks having a great deal of autonomy over foreign investors.

After all, you can't influence it financially, and it has the whole of the United States as its political backing. It's understandable that American bankers are so high and mighty. Apart from internal factors, they have no natural enemies externally!
Therefore, it may be relatively easy for people within the United States to acquire these large banks, but it is much more difficult for foreign capital to enter. It's not as simple as just having money; you also need to win over the management and see if they will accept your offer.

Otherwise, even if you become a shareholder, you'll just be holding a bunch of worthless paper. Aside from enjoying some dividend rights, it's meaningless.

Therefore, Li Changhe has never had any interest in American banks and has been too lazy to take action.

But now, Bank of America has actually offered to accept him as a shareholder, which is quite interesting.

“Vic, yes, we're inviting you to be a shareholder.”

"Of course, you know the laws in the United States, so we can't give you too many shares, but Bank of America won't let you down either."

"We just feel that if we work more closely together, we can create a better future together."

James said seriously to Li Changhe.

Their desire to invite Li Changhe to become a shareholder was not a spur-of-the-moment decision, but rather the result of careful consideration by the entire California consortium.

On the one hand, Li Changhe's abilities impressed them, especially in the second oil deal. Li Changhe's negotiation skills with the Japanese were highly recognized by James and other senior executives of Bank of America.

In the financial industry, the most important thing is foresight, which is more important than any professional ability. Li Changhe's foresight in the past period of time is enough to prove his vision.

This is also the most important element of the financial industry's overseas expansion. You have to bet on the right thing to make it count as expansion.

On the other hand, the California consortium also had a thorough internal discussion. For the California consortium, being located on the west coast of the United States and having started developing relatively late, this has trapped them in California, making it difficult for the consortium to expand.

After all, the core of Europe had long been divided up by those old conglomerates on the east coast.

Morgan, Rockefeller, Boston, and New Jersey white old-money conglomerates, taking advantage of time and the Atlantic Ocean, had long ago divided up the core interests in Europe, while California conglomerates, due to geographical distance and industrial relationships, did not gain much after World War II.

Therefore, for the California conglomerate, Europe was only a small part of their business, so they turned their attention to Asia, which is just across the ocean from California.

Although compared to Europe today, only Japan's economy is barely decent in Asia, it still has a large population.

Most importantly, the largest country in Asia has now lifted restrictions with the United States and begun to engage with the outside world.

For the California conglomerate, betting on Asia and the East is the most suitable and convenient direction for their overseas expansion, given that they are only separated by the Pacific Ocean.

Therefore, they need a top-tier ally in Asia who can be trusted and relied upon, and in their view, Victor is the only suitable ally.

Just wanting to be an ally doesn't work without making sacrifices.

If the California consortium wants to further strengthen its cooperation with Li Changhe, it must allocate some resources.

However, after reviewing all the companies under its umbrella, the military enterprises were definitely out of the question, and the general enterprises, such as those in the construction and chemical industries, were not large enough.

After much thought, the banking industry is the only high-quality sector they can consider besides the military industry.

Moreover, the banking industry has another advantage: it is subject to the restrictions of US law, so they are not afraid of Vic targeting them or worrying about the bank changing hands. This also demonstrates their approval of Li Changhe.

Moreover, in their view, Victor himself has a lot of assets in the United States, which makes him a major client of the bank. Binding with Victor is a mutually beneficial thing for Bank of America.

“James, it’s certainly a good thing for me to be able to invest in Bank of America, and I also think it can strengthen our relationship.”

"But I regret to inform you that I have no money!"

"I don't have enough funds right now to acquire shares of Bank of America."

Li Changhe shook his head helplessly at this moment.

For Li Changhe, being able to acquire a stake in Bank of America was a good thing. At least in the short term, he would have a financial institution in the United States that was independent of Rockefeller, which was a great convenience for him.

Moreover, as far as he knew, California would be one of the most open regions in the United States in the future. This was partly due to the influence of the internet, and partly because California on the West Coast was indeed more welcoming to Asian capital and people, which was much better than the cities on the East Coast.

This is also why Li Changhe has always placed the core of the United States in California rather than New York.

But the good thing is, he has no money.

Bank of America is now considered one of the largest banks in the United States. Li Changhe is not very clear about its exact market value, but he imagines it is no less than tens of billions of US dollars.

Even if you give him five percent of the shares in a bank like that, it would still cost four or five hundred million US dollars.

Of course, Li Changhe could still scrape together several hundred million US dollars if he squeezed a little, but he had different plans for these funds and couldn't possibly put them all into the acquisition of Bank of America. Besides, Li Changhe's bluntness naturally had its own intentions.

What is Bank of America? It's a bank, and banks have no shortage of money!

Therefore, Li Changhe believed that if Bank of America was truly sincere, it would definitely help him solve this problem.

As expected, James smiled confidently after hearing Li Changhe's words.

“Vic, we also know that asking you to come up with a large sum of money to acquire shares in Bank of America is a decision we've made.”

"The bank will conduct about three private placements in the next five to ten years. At that time, you or your investment institutions can be included in the list of private placement participants. We will then distribute a total of about 7.5% of the shares to you."

"The initial estimate for the total amount is around $5 million, how about that?"

James then told Li Changhe about their idea: a targeted share issuance, which was a plan they had prepared long ago.

Firstly, the price of private placements is generally lower than the market price. For Li Changhe, this can be seen as a gesture of goodwill from Bank of America. To put it bluntly, getting the shares is a way to make money. Although there are rules restricting the sale, his paper wealth has increased, hasn't it?
Secondly, the private placement provides a time buffer, which allows them more time to observe Li Changhe's capabilities. If he continues to be as brilliant as ever, accurately predicting global financial trends, then Bank of America will undoubtedly increase its efforts to win him over.

Conversely, if Li Changhe's success is merely a flash in the pan and he makes a series of mistakes afterward, then Bank of America will have enough time to buffer.

To put it bluntly, all they can do is find some excuse, like regulatory authorities not approving it or delaying the share issuance, and they can ruin the whole thing.

"Oh? That's great? If that's the case, of course I agree!"

After hearing this, Li Changhe immediately smiled and agreed.

He naturally saw through the other party's little scheme, but it didn't matter. They were just using each other anyway, and some things were better left unsaid.

Moreover, he will need Bank of America's help next.

“James, I also have something I want to discuss with you.”

"I'd like to have a batch of special credit cards made at Bank of America!"

"A special credit card?"

James was puzzled by Li Changhe's words.

Credit cards are indeed a business that Bank of America is vigorously promoting, but they are not mainstream at present. This is mainly because inviting members to apply for cards is too troublesome, and this thing is too easy to generate bad debts and bad debts.

I don't understand what Li Changhe is using this for.
"Here's the thing, James. I'm planning to open a club in Asia, and I need to use a special Visa credit card as a form of identification for club members."

Afterwards, Li Changhe shared his ideas about the club with James.

James's eyes gradually lit up after hearing this.

Because he knew very well that what Li Changhe was telling him was not just his club's structure, but a brand new, prestigious service system for high-level wealthy individuals.

For all companies in the world, what company has a greater advantage in communicating with various businesses than a bank?
The answer is no!
For Li Changhe, what he envisioned might just be a club, but for James, what the other party described could easily be a company!

“Vic, your idea is truly ingenious. This way, we can attract a large number of high-quality members, and I think many people will join in a frenzy.”

James couldn't help but praise him at this moment.

Li Changhe smiled and said, "James, I think you can also consider this idea: leverage the network of your high-quality clients to create a special service company."

“Vic, your idea is excellent. For banks, this is a very novel way to maintain high-end customers.”

"However, if we want to realize your idea in the United States, I think we will need your help."

James then spoke seriously.

"My help?"

"Yes, your help, Vic. Are you closely connected with the Rockefeller family? I think you need to help us make connections. It would be best to work with Chase Bank to cover the entire United States in the shortest possible time."

"Otherwise, it would be very difficult for Bank of America alone to do this. You know, our business scope is limited!"

James said to Li Changhe with a helpless expression.

Upon hearing this, Li Changhe immediately understood the problem.

While the US provides a lot of protection to its banks abroad, it also imposes layers of restrictions on them domestically. One of the most interesting restrictions is the prohibition on conducting business across state lines.

To put it bluntly, Bank of America's current business scope is ostensibly limited to California; it cannot expand beyond that.

Therefore, in the United States, each state often has its own core bank.

"Your interstate travel ban is really something."

Li Changhe couldn't help but shake his head.

James smiled slightly: "This restriction will be lifted soon. Major banks are seeking to lift the restrictions, and it is expected to be lifted next year. This is why I think it's the reason to cooperate with Chase Bank."

“Once the restrictions are lifted, our expansion will inevitably target the surrounding states. With Chase Bank on the East Coast and Bank of America on the West Coast, we can expand in parallel and complete our plans for the United States in the shortest possible time.”

“If our bank were to negotiate this matter directly, it would probably be very troublesome. However, if you bring it up with the Rockefeller family, given Mr. David’s influence at Chase Bank, the process will proceed very quickly.”

"This special service system, combined with the Rockefeller family's businesses and network of relationships, would be of great help to us. For one thing, the Rockefeller family's influence in the aviation industry is enormous."

James spoke earnestly to Li Changhe, who listened and nodded with a smile.

“James, your idea is indeed good. I happen to be having lunch with David at noon, and I can mention it to him for you. However, I cannot guarantee whether you can reach an agreement.”

Li Changhe doesn't mind facilitating this cooperation between Bank of America and Chase Bank. For him, his club can only be maintained in Asia at most; Europe and America are regions he cannot reach.

This is why he readily shared this business idea with James.

If Li Changhe could establish a Black Gold Centurion service system closely related to him in Europe and America before the Express Company, it would also be of great benefit.

(End of this chapter)