The richest person in Chinese entertainment

Chapter 519: Temptation and Traps, Opportunities to Go Higher

Among the top three banks in this crisis.

The situation of Citigroup and Morgan is the most critical.

Among Citi's core assets, mortgage securities products (MBS and CDO) account for a very high proportion.

According to the financial report, the company holds CDO worth 430 billion, accounting for 5% of its total assets.
Of these, 70% were CDOs backed by stimulus loans with wildly inflated ratings.

Thanks to their outrageous operations, this type of bond was actually rated "AAA".

Moreover, as far as Zhang Chen could remember, Citibank still had some things that were not included in its balance sheet.

They also held $800 billion in subprime-related assets through SIVs, which were various commercial papers and stimulus MBS.

Citigroup has long relied on the short-term commercial paper market for financing, and its asset allocation is very unreasonable.

But they also have credit card business and cross-border deposit business.

This part of the global retail banking business can provide them with an average liquidity buffer of US$200 billion per day.

But under the influence of Zhang Chen's two films "La La Land" and "The Pursuit of Happyness", their global customers began to panic and withdraw their money.

The liquidity once reached 200 billion US dollars, but now it is considered a blessing to be able to maintain a scale of less than 100 billion.

Morgan's situation is similar.

There are approximately $260 billion in RMBS assets, 40% of which are backed by stimulus loans.

In addition, the commercial real estate mortgage portfolio is approximately US$340 billion, and currently has a default rate of approximately 5%.

This has resulted in downgrades in their CMBS ratings and margin calls.

This is also one of the sources of their crisis.

The last one is Duan Aqi’s financing tool.

Among them, commercial paper has an average daily bill financing of US$700 billion.

In addition, the scale of repurchase financing using RMBS and CMBS as collateral has reached US$230 billion and is still increasing.

If their collateral depreciates, they will be forced to close their positions.

Although the commercial paper market is still far from collapse.

But now financing costs have soared 80%
And if the current situation continues, Morgan will face huge problems with its cash flow.

Goldman Sachs fared best.

They had already noticed some of Zhang Chen's secret operations.

It has $690 billion in cash and cash equivalents, accounting for 15% of total assets.
It is the bank with the most sufficient cash flow among all the banks present.

In addition, when he discovered that Zhang Chen showed signs of bearishness, he contacted William and purchased a lot of CG funds.

However, Zhang Chen had already made preparations when entering.

Goldman Sachs could only get some scraps.

The size of CG funds held in hands, converted according to the CDS face value, is at most US$40 billion.

However, Goldman Sachs also has $2200 billion in Nifty government bonds and Fannie Mae/Freddie Mac bonds.

This part is considered hard currency all over the world and can be quickly pledged for financing.

Logically speaking, Goldman Sachs should be the least worried among the banks present.

After all, there are $690 billion in cash and $2200 billion in US Treasury bonds.

But precisely because of this, Zhang Chen has the most customized CDS in their house.

Goldman Sachs alone took on $9020 billion of the approximately $4000 billion in CDS face value.

It was precisely because they saw that Zhang Chen dared to buy so many CDS from them that they were forced to understand and grasp Zhang Chen's bearish trend.

This series of chain reactions made Goldman Sachs feel fortunate, but also made them feel heartbroken as they looked at the "compensation" of up to 4000 billion in their hands.

This can also be regarded as a manifestation of "blessings and misfortunes go hand in hand".

However, if Goldman Sachs executives were given another chance to choose, they would rather not enjoy this "blessing".

According to their original plan, their cash and government bonds would be enough to get them through this crisis.

But it is because of this person in front of them that Goldman Sachs has become the biggest lamb on other people’s tables!
Lloyd Blankfein looked at Zhang Chen hatefully.

But it was precisely because of this glance that Zhang Chen caught him by surprise.

"Mr. Blankfein, what do you think?" Zhang Chen looked at the guy with a smile, "When I walked in just now, I almost forgot to thank you for the surprise you gave me last year."

"Surprise? What surprise?" Lloyd Blankfein trembled all over, but pretended to be calm, "I don't understand what Leon is talking about."

"Oh?"

Zhang Chen stared at his eyes that kept dodging but wanted to look him in the face for a long time.

After a long time, Zhang Chen shifted his gaze when the other party, Lloyd Blankfein, began to sweat on his forehead.

He turned to John Mike, who was struggling to figure out how to raise the price to satisfy Zhang Chen.

"Mr. Mike, I have a suggestion. Would you like to hear it?"

John Mike was worried here, but when he heard Zhang Chen say this, he agreed without thinking.

"I'm all ears!" John Michael looked at Zhang Chen expectantly, "You go ahead."

Although judging from Zhang Chen's attitude, he will definitely get beaten and bleed.

But this was the first time that Zhang Chen took the initiative to propose conditions after they met.

You must know that during the negotiation process, the party that does not put forward its own conditions is always the one with the advantage.

The weaker party will gradually lower his or her psychological threshold and allow the stronger party to judge the transaction.

The advantaged party just needs to strike a balance so that the disadvantaged party doesn't give up and stop the transaction.

When the two parties met today, Zhang Chen did not mention any conditions.

I just said "no" twice in response to their proposal.

Once, I asked them to change their plan without even looking at their proposal.

This made John Michael and others who had originally planned to proceed step by step and give up their bottom line step by step lose their composure.

They could only come up with the "optimal" solution they had prepared before coming the second time.

But Zhang Chen's "no" put them in a dilemma.

In addition, Zhang Chen had revealed the secret of the "Donkey and Elephant", so even if Zhang Chen disagreed with their "optimal" plan, they did not dare to overturn the table rashly.

另外
Many bank presidents turned their eyes to the presidents of Hollywood studios who were sitting behind Zhang Chen and had remained silent.

They don’t think that these people are just serving as background for Zhang Chen.

The Hollywood studios may not have as much money in the bank as they do.

But there is one thing they can never compare to.

That is the control of public opinion in this world.

If Hollywood is given more time, it is not completely impossible to change the public's Weiss model.

The manipulators behind the world's major media, plus the shareholders of the largest interactive platform on the Internet.

This is another reason why they dare not overturn the table.

Look at John Berger and Larry Fink who are already drinking tea on the other side.

If Zhang Chen dared to start this financial crisis alone with Chinese nationality.

The bankers definitely have a hundred reasons to refuse to pay this "compensation".

What’s worse, they directly made Zhang Chen’s external environment even worse in a tougher way.

But Zhang Chen brought in two big Buddhas, Pioneer Navigation and BlackRock.

Directly cut off their ability to overturn the table.

They have also tried to create trouble for Zhang Chen within China.

But those stupid pigs, after they set their eyes on Zhang Chen's assets, used the most brutal method.

The things being traded are things that should never be seen in the open.

Although the value is very high, it cannot be put on the table.

They thought Zhang Chen didn't dare to expose them.

But they didn't expect that after the crisis broke out, the value of the things they mortgaged plummeted and they were required to add additional margin.

And the things they mortgaged were also exposed.

Although it only spread in a small area.

But it also exposed all the dirty deeds of these "young masters".

And I heard that Zhang Chen has a close relationship with the person who just completed the handover in Shanghai Stock Exchange.
One incident after another overwhelmed the thirty-odd bank presidents and their shareholders present.

The CDS face value of US$9020 billion is a huge mountain weighing on them.

The major Hollywood studios are the sword that prevents them from launching a public opinion war to discredit Zhang Chen for "endangering" the United States.

Vanguard and BlackRock are the pillars that keep them from turning the table over.

This is also the main reason why, although this financial war was launched by a foreigner, Zhang Chen, it was characterized as a domestic power struggle.

The CCP platform is the guillotine that they dare not apply for bankruptcy liquidation.

The continuous collapse of subprime loans is the "Sword of Damocles" hanging over their heads.

China is also the rear base where Zhang Chen has been operating for many years.

Even if they had "seduced" the guy who disliked Zhang Chen once.

But not only did nothing come of it, it also made Zhang Chen and the force behind him that secretly supported him even stronger.

Now that the "donkey-elephant dispute" has been exposed again, another sword has been added to the minds of bankers.

No matter how hard they try, the bankers can't find a breakthrough.

I can only put myself on the table.

Waiting for Zhang Chen to cut.

"Leon?"

Death, that moment is not the most terrifying.

The time of waiting to die is the most terrifying.

John Michael and others have this feeling now.

The feeling of having a knife pointed at your neck, as if you were thinking about how to cut.
It’s so painful!

"Oh!" Zhang Chen admired the other person's expression for a while before speaking, "My people found that some of you actually made a lot of preparations before the crisis began."

After saying that, Zhang Chen glanced at Lloyd Blankfein.

John Michael followed Zhang Chen's gaze.

Ang saw a flash of panic on Lloyd Blankfein's face.

John Michael understood and said, "Some of us have done a lot of things without telling us."

Speaking of this, John Mike felt very angry.

The people at Goldman Sachs eat all the food themselves!
Among their more than 30 banks, which one did not hold a huge amount of CDO that led to the collapse?

However, not only did Goldman Sachs not have CDO, it also secretly bought a lot of Zhang Chen's CG funds to short their banking industry.

This is betrayal!
As for Goldman Sachs' $4000 billion "compensation", John Michael automatically ignored it.

It must be that Lyon saw that Goldman Sachs had sufficient cash flow, so it made the biggest bet on Goldman Sachs.

As for whether to let Zhang Chen win the bet?

John Michael has a scale in his heart.

As long as his Morgan could survive, the life or death of his partners had nothing to do with him.

"Leon, we did underestimate it."

John Michael smiled and winked at the bankers behind him.

These thirty plus people were all smart people, so they knew what John Mike was up to. Soon most of them nodded calmly.

Although I don’t know what the conflict is between Zhang Chen and Goldman Sachs.

But since Zhang Chen took the initiative to cheat Goldman Sachs in this transaction, John Mike and others naturally agreed wholeheartedly.

As long as you open your mouth, it means you want something.

The most frightening thing in a transaction is that the opponent has no desires or demands.

Although Zhang Chen did not say it explicitly now, they have clearly received his intention to deal with Goldman Sachs.

Among the more than 30 banks, Goldman Sachs indeed made the most money in this crisis.

At the same time, more compensation is required.

In this case, what's wrong with "sacrificing" Goldman Sachs to reduce the pressure on other banks?

If one family dies, thirty families live.

They will be "grateful" for Goldman Sachs' "helpful" character.

As for whether the other party agrees or not?

Does it matter on this occasion?
The tacit agreement reached by both parties to the transaction cannot be overturned by Goldman Sachs alone.

At this time, John Mike and others were actually thankful for the preparations made by Zhang Chen and others.

If Zhang Chen and others had not completely blocked their retreat, it would not have been possible for Goldman Sachs to surrender by forcing them like this.

Seeing Zhang Chen and John Michael and others flirting with each other, their words implied that they wanted to push Goldman Sachs to the forefront.

Lloyd Blankfein couldn't sit still any longer.

"What do you want to do?!"

He had a bad feeling.

He has been trying to reduce his presence as much as possible since he came in.

He also knew that he had done a lot of shameful things during this crisis.

Especially when facing your peers.

Although backstabbing is common among peers.

But this time it was different. This time it was Goldman Sachs that backstabbed the entire Wall Street bankers.

The entire Wall Street allows for a winning side, but it does not allow that side to have only one bank.

Goldman Sachs is the first to come out of this crisis.

Others have relied on short-term financing and subprime loans to accumulate a large amount of debt for themselves today in the past few years.

Only Goldman Sachs secretly changed its business strategy.

I had originally planned to stop after finishing this insurance deal with Zhang Chen.

As a result, the group suffered the biggest setback since its establishment.

The task given to him by the board of directors was to fish in troubled waters.

As long as they can safely accompany other Wall Street investment banks through this crisis, Goldman Sachs will be the ultimate winner on Wall Street in this crisis.

It doesn’t matter how much compensation Zhang Chen has to pay this time.

As long as they pay the same compensation as other investment banks under the same conditions, the strength they can retain will still allow them to stand at the top of Wall Street.

By then, what you lose to Zhang Chen and others can be earned back from your peers.

It has to be said that each of these thirty-odd banks has its own little ideas.

As long as they can find an excuse, they have no psychological barrier to taking advantage of others' misfortunes.

Goldman Sachs is thinking about acquiring other banks that might go bankrupt during the crisis.

In fact, banks such as Morgan have long been unhappy with Goldman Sachs's "traitorous" behavior during this crisis.

Zhang Chen's words also gave them an excuse to deal with Goldman Sachs.

"Laud, I think Lyon is not satisfied with our plan mainly because we haven't put out enough cash." John Michael smiled brightly, "It seems that you Goldman Sachs have a relatively ample cash reserve, with more than 2000 billion US dollars in Treasury bonds?"

"Everyone has a lot of cash and government bonds, right?"

Lloyd Blankfein was extremely anxious, but he still looked calm on his face.

"Allocating some highly secure assets should be the ballast stone of our industry."

Even though he has an expressionless face now, he has already started cursing in his heart.

These old guys usually just think about making quick money through short-term financing.

Now the financing costs have skyrocketed, and those who used to make a lot of money from the real estate market.

Now that the treasure pot has "exploded", I finally reacted.

Live it!

But even though I thought this in my heart, I could only say this out loud.

I can only use these kinds of sarcastic words to avoid appearing like a soft persimmon.

But he could only do this much, and he was afraid of pushing these people too far.

"Everyone is having a hard time right now," John Michael said with a cold light in his eyes, "This is when we need heroes."

Damn hero!
That thing is an "entertainment product" made by a group of people in Hollywood to "entertain" everyone!
Anyone who believes this in the financial circle is a fool!
Lloyd Blankfein couldn't stop cursing in his heart.

He could see what the people on his side wanted to do.

In fact, he had this guess just now, but he just didn't want to believe it.

“But.” John Michael spread his hands with an innocent look on his face, “We at Morgan and Citibank, or even other banks, will never be forgiven by Leon for the money we have.”

John Michael used "forgiveness" once.

This surprised Zhang Chen, who was watching the show.

However, after seeing their inquiring looks, he nodded seriously.

indeed!

With just that little money, are you going to give alms to a beggar?

"Look, Leon is already angry!" John Michael said patiently, "Now the only way to beg for Leon's forgiveness is to pay more cash compensation."

"Don't tell me this, it's our common duty."

Lloyd Blankfein looked disgusted and didn't want to be continuously targeted by John Michael.

"But." John Mike looked regretful, "We don't have the vision of Goldman Sachs. Now the account is completely empty, with only Goldman Sachs."

"Old John!" Lloyd Blankfein slammed the table angrily.

"Lourde?" John Mike smiled.

The two sides sat next to each other, but the tension between them seemed to be separated by the Pacific Ocean.

“Hiss—ha~”

A discordant sound interrupted the confrontation between the two.

"Don't look at me, just chat about your own things." Zhang Chen put down his teacup and said with a smile, "Do you need me to leave you a separate space for communication?"

"want!"

"unnecessary!"

To Zhang Chen's surprise, John Michael, who was originally thought to want to cut the Gordian knot, rejected Zhang Chen's proposal.

But unexpectedly, it was Lloyd Blankfein, who needed wiggle room, who refused the opportunity for private discussions.

“Leon, are you interested in becoming a shareholder of Goldman Sachs?”

As Lloyd Blankfein finished his words, the entire conference room fell into a ghostly silence.

A shareholder of the top investment bank in the United States?

To be honest, Zhang Chen was a little moved.

It must be said that Lloyd Blankfein finally found a way to save himself at the critical moment.

Because the person who finally made the final decision on this deal was Zhang Chen.

Instead of fighting to the death among bankers, even his own Goldman Sachs family was sacrificed.

It would be better to switch sides and join Zhang Chen.

Zhang Chen also keenly caught the little calculations in Lloyd Blankfein's mind.

He glanced at both John Berger and Larry Fink.

The two helmsmen of Vanguard and BlackRock, who had been watching the whole show, looked at each other and nodded with a little surprise.

They are in the business of investing.

High-quality bank stocks, especially those of top investment banks like Goldman Sachs, are definitely a lucrative reward.

If Zhang Chen can help them get it, it will be a huge achievement for them within the group.

After getting the tacit consent of both parties, Zhang Chen's mind became active.

This plan is both a huge opportunity and a huge risk.

Because this is an opportunity to get in touch with the deeper level of the United States.

On the surface, the United States is centered around the White House and Capitol Hill.

But behind this appearance alone, there is a team of White House advisers pushing it forward.

Behind it are K Street lobbying firms and Super PACs
A typical example is the Committee on Foreign Relations (CFR).

In addition, there is the Supreme Court and the NGA that influence the entire United States.

Digging deeper, we find Wall Street and the military-industrial complex.

The two parties are centered on the "Blackstone-BlackRock-Vanguard" and the "Raytheon-Northrop Grumman-General Dynamics Alliance" respectively.

They control Boeing, Lockheed Martin, and NDIA respectively.

If he could enter Goldman Sachs' shareholder list through this transaction, although it would still be far from the second level, he would already be able to get in touch with some of the most core people in the United States.

However, are they really confident that a Chinese like them can get their hands on these things?
Zhang Chen subconsciously looked up at Lloyd Blankfein.

This old boy!
After seeing the other party's subtle expression, Zhang Chen cursed inwardly.

I almost got tricked by this guy.

"I'm already a shareholder of too many listed companies. I'm too busy to handle it all." Zhang Chen waved his hand with a look of disdain, "Change the terms."

At the same time, I secretly cursed myself for being too greedy.

If he really agreed to the other party's proposal, he was sure that the day he took over Goldman Sachs shares would be the day when an accident would happen to him.

How could a Chinese like him get his hands on the core assets of Wall Street?
This is exactly what Lloyd Blankfein is planning.

As long as Zhang Chen dares to accept it, he can turn around and lobby some people to kill Zhang Chen.

Zhang Chen also did not dare to underestimate some high-ranking officials with extreme ideas.

His current international status and wealth have already made these people dissatisfied.

In their eyes, only they can stand at the top of the pyramid.

Others are only fit to be used by them.

If Zhang Chen had any intention of going to the table, he would definitely be targeted by them.

At that time, Hollywood and Wall Street who stand with him will be the enemies he has to face.

After realizing this, Zhang Chen felt a lot more relieved.

He is just a vulgar man, all he wants is money.

"Everyone, let's hurry up." Zhang Chen raised his hand and looked at his empty wrist in a serious manner, saying, "It's getting late."

Since you can only ask for money, just take a few more bites.

(End of this chapter)