Coquettish Rebirth

Citigroup, such a banking group that used to be the number one in the world, if there is an analogy, it is the aircraft carrier fleet!That's right, in this group of Citigroup, there are not only banks, they have various businesses and departments, just like the aircraft carrier fleet has destroyers, air defense ships, and carrier-based aircraft. There are anti-submarine aircraft with near-anti-cannon, early-warning aircraft, fixed-wing and helicopters!These things may all appear in a sale list of Citi Mud Bodhisattva crossing the river to protect himself!Although it is said that among the assets that Citigroup announced to sell, there are only housing mortgage loans with a paper price of 450 billion US dollars, but it does not mean that they will not sell more things in the next two to three years!And the things to be sold are not necessarily bad assets!

That's right, most people would think that if their company's mud bodhisattva crosses the river, they must throw away all the burdens on their bodies, try their best to sell off the non-performing assets and lose money to stop the loss, and then rely on a whole body of high-quality assets. overcome obstacles.But the question is, is it easy to sell non-performing assets?How long has it been said that the home mortgage loans with a paper value of 450 billion U.S. dollars have been sold, but no one has yet quoted an offer!In many cases, for enterprises, the key to life and death, regardless of whether it is good or bad, the most important thing is to be able to sell and make money to tide over the difficulties!This is a bit like Nokia. When Nokia is facing difficulties and losing money continuously, the mobile phone department is actually not considered a non-performing asset-everything is in the brand and technology. Two years later, Nokia is still a hero!

If this is really a choice for ordinary people, they might choose to sell Nokia’s telecommunications department—yes, this Nokia actually still makes base stations, mobile phone basebands and other things, anyway, Nokia has problems in history At that time, Warwick had already occupied a large market share in Europe, so Nokia could really sell the telecommunications department and exchange it for funds to revive the mobile phone department!but.The decision made after the meeting of Nokia's board of directors was to sell the lifeline mobile phone department!After selling the mobile phone department and recovering billions of dollars in blood, isn't Nokia no longer a Nokia?After a few years, people slowed down.After Microsoft has finished using the Nokia brand, who said that Nokia can't reopen a mobile phone department?Microsoft bought Nokia's mobile phone division, but it didn't say that Nokia was not allowed to enter this business for a lifetime!

So this kind of logic is actually feasible for Citigroup to some extent-when necessary, Citigroup can actually sell very profitable businesses and departments.Get big cash!With a lot of cash, they can live to sell those bad assets slowly!After the non-performing assets are dealt with, Citigroup will no longer lose blood, but the blood-making ability may also be insufficient. At that time, it will be great to re-organize profitable departments!So under such a situation, Jia Hongjian organized a group of people to urgently start analyzing various businesses of Citigroup, and began to study in advance which assets of Citigroup would be better to buy!

"Hey, Mr. Jia, I think the ONEMAIN department of Citigroup is good! This department is the consumer finance department, which is a bit like the credit card business. It is to issue small loans to ordinary people, so that ordinary people can pay some unexpected emergency expenses or buy small loans. Things like that..." A senior analyst at Hua Xia Bank discovered a good department in Citigroup, and rushed to report to Jia Hongjian.Jia Hongjian took a look at the information handed over by the senior analyst. The full name of such a department called "ONEMAIN" is called "OneMain-Financial-Holdings", which translates to "ONEMAIN Financial Holdings".Such a department is currently under Citigroup Holdings, and Citigroup Holdings was established before the financial crisis to store assets that Citigroup eventually wants to spin off or shrink!

At the same time, the OneMain department, when its performance was good in the first half of last year, once filed an independent listing application with Citigroup, but Citigroup has always preferred to sell this department directly!Only when I wanted to sell it before.The quotations of several interested companies either did not meet Citigroup's requirements, or the payment method made Citigroup unsatisfied-this means that Citigroup seems to be more inclined to all-cash transactions, while the interested companies offer all What part of the cash part of the stock and so on, so now Citigroup has not sold such a department!

"Mr. Jia. Judging by common sense, now that Citigroup is slowly falling into crisis, it must need cash more. Only with cash can they avoid defaulting on debt due! And isn't our Huaxia Hi-Tech more than cash? This is really a god Great opportunity!" The senior analyst analyzed this next to Jia Hongjian.Indeed, Jia Hongjian agreed with such a judgment, because Citigroup was once the largest bank in the world.They also have various debt problems. Of course, the debt problem is not serious, but they still have to deal with a series of things such as dividends.If the current loss continues, it will be difficult for investors to see the possibility of future profits. If this happens, investors will forcibly liquidate their positions and withdraw their funds, which will make things worse for Citigroup!So they need to give investors confidence quickly!How to quickly give investors confidence?Get cash!Sell ​​non-performing assets and certain good assets first for cash, and then turn the book into profit after having cash. This can use cash to distribute dividends to investors, which is something similar to dividends, so that the prospects for future profits Wouldn't it be good?Then the stock price will rise, and after the stock price rises, investors will not withdraw their funds, right?Didn't Citigroup survive the crisis in this way?

And when Jia Hongjian took a closer look, such a department was really good.On the one hand, they are profitable themselves. From this point of view, after we spend money to buy them, we don’t need to make any changes and use our brains, and they can directly make money for us. How good it is!On the other hand, this department does various small loans for consumers, and the amount is a loan that can be higher than the overdraft limit of a credit card and has a higher interest rate.What is such a loan?In fact, it is the "unsecured loans" that popped up everywhere in China's big cities after 2012!This kind of loan in China can be as small as 1000 yuan or as large as tens of thousands of yuan, and it really does not require any collateral!

That's right, you don't need to use things as collateral to give money like a large loan. For small loans to consumers, you don't even need a penny of collateral!So how can these loans be guaranteed to be repaid?First of all, people who want to get a small loan must conduct a certain credit investigation. The higher the credit, the more stable and the higher the income, the greater the amount you will definitely get!For example, a college student who has no financial ability and no credit history may only get a loan of 1000 yuan with his ID card!But a civil servant with a very good credit record for buying a house or a car may get a loan of [-] yuan without any mortgage after handing over his income statement and work certificate to other financial companies!

So how do these financial companies avoid not repaying the loan?It's very simple, for those who are not so high-quality, low amount plus high interest!Then make small profits but sell more!What is the volume of small profits but quick turnover?Just like doing insurance!How do insurance companies make money?Sell ​​insurance to 20 people, 2000 people buy insurance for 100 yuan, the total is 20 yuan, and then the insurance company agrees that if something happens, the person who has the accident can get 1000 compensation.So for insurance companies, as long as no more than 1000 people have accidents, they will make money!Even if ten people have an accident, a total of 1000 will be paid to these ten people, but isn't there still [-] yuan left?Isn't that what insurance companies earn?Similarly, for these financial credit companies, for migrant workers and college students with almost no credit records, they will provide very small loans, such as [-] yuan, without collateral.

And among these people, as long as the proportion of people who default and fail to pay back the money is within a certain amount, the company as a whole is still making money!And these people who don't repay their loans, it's not that they really took fool's money for nothing - in the past few years, the country has begun to establish an inter-bank credit system, let alone 2012, even in 2007 when small loans failed. After paying back, I will work, get married, buy a house and buy a car in the future. Then there will be times when I cry!Even in 2012, when he was on the list of dishonest persons in the country, he was not even allowed to stay in an airplane or a high-end hotel!Under such a big risk, how many people will still refuse to pay back the money?And the interest rate is actually not that high—just ten percent!Borrowed 1000, as long as you pay back 1100, is it necessary to buy 1100 for the rest of your life, unable to buy a house, car, or even fly?

Such a department under Citigroup is a bit interesting, considering that in the future there will be companies in China that will start to promote this kind of micro-loan, and then think of the emergence of various online wealth management and loan products on the Internet in history, as well as Jia Hung-chien and the others want to promote mobile payment in the United States... Then why don't we buy such a Citigroup business and see if it can be integrated with our original plan? (~^~)