America's No. 1 financial conglomerate

Chapter 360 The enemy of my enemy is my friend

"Ernst, so what brings you to Lehman Brothers today?"

After exchanging pleasantries, Richard sat in the reception area on a leather sofa, leaning slightly forward with sharp, eagle-like eyes, looking directly at Ernst across from him, and bluntly asked the question that had been bothering him.

"Couldn't I have come here to strengthen our bond?" Ernst's lips curled up slightly, his eyes gleaming with a hint of playfulness. His tone was as relaxed as if he were on a beach in Miami, completely unaffected by Richard's serious aura.

Upon hearing this, Richard first raised an eyebrow, then stretched out his hand and gestured between the two of them, his tone both teasing and certain: "You know, we're the same kind of people."

He didn't believe Ernst would be so bored as to make a special trip to Lehman Brothers just to foster some kind of relationship.

These capitalists have long since sold their time, like commodities with price tags, entirely for money.

In their world, every minute and every second is potentially tied to enormous wealth, so they have no time for such superficial emotional exchanges.

If it weren't for the profit involved, he would rather believe that Ernst was probably lying in the soft bed of some Hollywood actress, enjoying a pleasant time, rather than arriving at Lehman Brothers headquarters early in the morning looking travel-worn.

After all, Ernst's romantic escapades were known throughout the United States, and he didn't believe he was more attractive than those voluptuous Hollywood actresses.

However, precisely because he knew the other party wouldn't do something pointless, Richard ended the planned morning conference call early and rushed back to his office.

It's worth noting that the conference call involved a substantial overseas investment project for Lehman Brothers, yet Richard didn't hesitate to pause the meeting upon learning of Ernst's visit.

Since the other party acquired MGM and officially entered the field of business management, he has been like a cheat code, never making a mistake.

Each company they founded seemed to be infused with magical power, unleashing astonishingly enormous potential.

In just two years, he has accumulated wealth that is beyond the reach of most people, a figure that others could never aspire to even if they worked their whole lives.

Even Richard himself, as the CEO of Lehman Brothers, a globally renowned financial giant, was well-informed and quite wealthy, but every time he saw Ernst in person and thought about the wealth he possessed, he couldn't help but feel a sense of disorientation, and even a slight sense of unrealistic illusion.

Sometimes he couldn't help but wonder to himself: Is this kid really as blessed by God as the media says? How come making money is easier than picking it up?

Now that this generous spender has come to Lehman Brothers, Richard is almost certain that the other party is there with the intention of cooperating.

Richard was filled with curiosity; he was eager to know what the other party was trying to do this time, and how much value it could bring to Lehman Brothers.

What would warrant his personal visit is definitely not a small, insignificant project.

Thinking of this, Richard's eyes were filled with anticipation. He even felt as if he could smell the scent of money in the air, a scent that made his heart flutter.

"He really has no sense of humor at all." Ernst felt bored, then exchanged a glance with Ivan Setonberg beside him, cleared his throat, and broke the brief silence.

He pointed to Ivan Setonberg beside him and introduced him to Richard, "I forgot to introduce you, this is Ivan Setonberg, the president of my newly established company, Continental Telecom."

"He was previously the CEO of NYNEX and the vice president of Bell Atlantic, but he was a capable lieutenant I personally recruited from Bell Atlantic."

Richard was taken aback for a moment, but a look of shock quickly flashed across his eyes.

Richard had heard of NYNEX, not because the company was famous or did a great job, but because it was acquired by Bell Atlantic last year.

The fact that the CEO of a small company that was acquired was able to successfully join the acquiring company, Bell Atlantic, after the acquisition itself fully demonstrates his ability and exceptional talent.

In corporate acquisitions, the management of the acquired company often finds it difficult to establish themselves in the new company, and those who manage to stay and be given important responsibilities are extremely rare.

Now that Ivan Setonberg has been recruited by Ernst from Bell Atlantic to serve as president of the newly established Continental Telecom, Lehman Brothers is even more interested in him.

But what truly shocked Richard was not Ivan Setonberg himself, but the fact that Ernst actually wanted to enter the telecommunications industry.

In the United States, although the telecommunications industry is not as large as the financial industry and does not have a significant impact on the national economy, the waters of the telecommunications industry are no less murky than those of the financial industry, and in some aspects, the financial industry is not as dark and complex as the telecommunications industry.

Although the new Telecommunications Act was enacted just three years ago, the law states that anyone in the United States can enter the telecommunications industry and apply for a telecommunications license. It seems to have a low threshold and gives everyone a fair chance to compete.

However, the reality is far from that. Being able to apply for a license is one thing, but whether you can actually get it is another.

Even if you manage to get the license by chance, getting the company up and running smoothly is an even more difficult task.

The telecommunications industry cannot be operated by simply opening a few small shops; it requires a large amount of infrastructure construction, the most crucial of which is laying cables.

The installation of cables within cities is relatively easy to solve, since urban land planning is relatively orderly and the relevant approval processes are relatively mature.

However, if you want to lay cables across cities or even states, it's not something you can just do whenever you want.

In the United States, most land is privately owned, and each piece of land has a clear owner. If you want to lay cables on someone else's land, the first thing you will face is the cost, which is not a small amount and is enough to deter many small and medium-sized enterprises.

The key issue is that even if you are willing to pay a high fee, the landowner may not agree.

In the United States, much of the land belongs to wealthy people who don't care about the money you offer; they value their privacy more.

For such a small amount of money, allowing telecommunications company staff to enter their land to inspect and maintain cables and disrupt their lives is something that wealthy people who pursue a high quality of life would absolutely never agree to.

In the American telecommunications industry, new players looking to enter the market typically choose to acquire established telecommunications companies rather than build their own from scratch.

Just like in the railway industry, building a new railway line is incredibly difficult, with countless obstacles to overcome.

Richard simply couldn't understand why Ernst would choose the telecommunications industry, such a tough nut to crack, when there were so many promising and relatively easy-to-make industries available.

Is it because making money is too easy and there's too much money, so they want to seek some excitement?

Seeing Richard's face full of doubt, his brows furrowed, and his expression of utter bewilderment, Ernst decided not to beat around the bush any longer.

He gestured to Ivan Setonberg, who understood and immediately took out several documents from his black briefcase.

He carefully placed the document on the coffee table in front of him, then gently pushed it toward Richard.

"China Telecom is planning to build a new communication line that will connect the Chicago futures market directly to Wall Street in New York. Once completed, this line will increase internet speeds between Chicago and Wall Street by at least three to five times."

"I think, with your professional perspective, you should understand the importance of this route." Ivan Setonberg's voice was steady and powerful, and every word clearly reached Richard's ears.

As he spoke, his eyes were firm and full of confidence, as if he could already see the enormous changes that the completed communication line would bring to the financial industry.

Richard certainly understood the importance of this route; otherwise, his expression wouldn't have changed instantly after hearing Ivan Setonberg's explanation, transforming from confusion to shock and excitement.

As the head of Lehman Brothers, a global financial giant, he was all too aware of the importance of information to the financial industry; it was practically a lifeline.

What does it mean if internet speed increases by three to five times?

This means that financial companies using this dedicated line will be able to access information from the Chicago Board of Trade in three to five times less time than before.

For a large investment bank like Lehman Brothers, this allows its traders to obtain key information 10 to 15 seconds earlier than their competitors.

Don't underestimate those short ten to fifteen seconds. In the ever-changing financial market, even a one-second difference can lead to huge differences in returns.

This is equivalent to knowing inside information in advance, and it's legal.

Every year, Wall Street's major investment banks and financial institutions willingly pay huge extra fees to America's major telecommunications companies.

Why?

It's because they need telecommunications companies to guarantee the uninterrupted operation of their networks and telephone lines.

Even the slightest problem must be resolved immediately within Wall Street's communication system, without the slightest delay.

The network line from Chicago to Wall Street is arguably the most important of all communication lines, serving as a crucial link connecting the two major financial centers of the United States.

Prior to this, there had never been a dedicated network line for transmitting financial information between the two cities.

If Ernst's Continental Telecom can actually build such a dedicated line, its impact on the entire financial ecosystem of Wall Street will be immediate and significant, and may even change the existing competitive landscape.

Thinking of this, Richard's heart began to race. He could almost see countless riches flowing into Lehman Brothers' accounts through this dedicated line.

Ernst keenly caught the fleeting glint of desire and greed in Richard's eyes, and he knew that his fish was about to take the bait.

So he intensified his enticement, luring her again, "Although I've never been involved in the telecommunications industry before and am a complete novice, I know how much business opportunity is hidden in this dedicated line."

"Last year, the trading volume of derivatives by U.S. financial institutions reached $21.9 trillion, and among these derivatives transactions, futures trading has always been one of the largest, with an annual trading volume of up to $4 trillion."

As Ernst spoke, he gestured the name in the air, his tone full of seduction.

"This is a huge market that can bring Wall Street tens of billions of dollars in profits every year. If Lehman Brothers could know about the Chicago Board of Trade's news a few seconds, or even a dozen seconds, earlier than its competitors, I don't need to elaborate on the enormous profits that could have been generated, do I?"

Needless to say, Richard understood the benefits involved better than anyone else.

With this information lead time of a few seconds to a dozen seconds, Lehman Brothers made an extra billion or eight hundred million dollars in the futures market every year, as easily as playing house.

This was undoubtedly a huge additional income for Lehman Brothers, enough to take the company's performance to a new level.

Richard remained silent, though his heart was churning with excitement, he maintained his composure on the surface.

He was quickly thinking about one question: why did Ernst choose to approach Lehman Brothers?

When it comes to personal relationships, Lehman Brothers is practically invisible on Wall Street.

Goldman Sachs, Citigroup, and even Morgan Stanley all had an advantage over Lehman Brothers, both in terms of strength and the number of times they had previously interacted with Ernst.

Ernst could have chosen these much stronger partners, so why did he choose Lehman Brothers?

Richard's brain was like a high-speed supercomputer, instantly generating a flood of information and a constant stream of possibilities.

Just as Richard was deep in thought, unable to find a solution, a sudden flash of inspiration struck him, and he looked up sharply at Ernst as if struck by lightning.

"Because of the bill?"

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