America's No. 1 financial conglomerate

Chapter 533 Choosing Sides?

The day after the Goldman Sachs party, Ernst received a call from Richard Fuld.

It was nothing more than exchanging pleasantries and greetings before recounting Paulson's comments from the party the previous night.

Ernst knew that he was testing his attitude.

Because of this matter and this point in time, it's no longer a question of whether Ernst Asset Management should join the small circle of the Federal Reserve Group.

Instead, it directly addresses the most fundamental and acute core contradiction in American society—the Donkey-Elephant conflict.

"Paulson called me this morning," Ernst said. "He told me about Ernst Asset Management joining the Federal Reserve team, but I declined."

Richard on the other end of the phone showed no surprise, as if he had expected this outcome.

But Ernst's next words exceeded his expectations, causing his previously steady breathing to suddenly catch in his throat.

"Paulson also promised me," Ernst's voice held a hint of amusement, "that if the young cowboy succeeds in taking office, Ernst Asset Management will receive comprehensive policy support and become the fastest-growing financial institution in the United States during his term."

"You've taken sides?" Richard's voice rose instantly, and he realized his lapse in composure as soon as he finished speaking.

Ernst chuckled softly, neither saying he refused nor agreed, but instead uttered an ambiguous yet intriguing remark: "You know, this doesn't fit the traditions of Wall Street." For many years, the traditions of Wall Street have been the donkey's private domain.

Although there are many supporters of the "elephant" in the financial world, in terms of the overall situation, they are not even in the same league as the "donkey" camp.

In particular, top Wall Street giants such as Morgan Stanley, Citigroup, and Lehman Brothers have long been staunch supporters of the donkey, and have formed a solid symbiotic relationship of interests.

Paulson is definitely an outlier, not only supporting giants but also doing so so openly, even using resources within Goldman Sachs.

However, Ernst understood Paulson's actions because he was angry.

Paulson worked in a federal government department in his early years, but was forced to leave due to internal power struggles. However, he never gave up the idea of ​​returning.

Moreover, he didn't want a quiet return, but rather a triumphant return to American political circles.

In addition, there is his own family.

Americans do not have the concept of self-cultivation, family harmony, national governance, and world peace, but in elite circles, family honor and inheritance are equally supreme pursuits. In many cases, family interests far outweigh so-called national interests, and the white house, which symbolizes power, is not unshakeable in the face of enormous family influence.

For Paulson, the position of CEO at Goldman Sachs was the ceiling he could reach in the purely business world.

Unless he chooses to leave his job and start his own business, building a new financial giant from scratch and becoming a super-rich man like Ernst who is not dependent on any system, which is almost impossible.

So he chose a different path, using the revolving door of Wall Street to enter the core of the government and become the U.S. Treasury Secretary. Although it might not be as comfortable as his current position, it would undoubtedly elevate his network to a higher level.

Another point is that this location can smooth over many hostile relationships.

As the president of Goldman Sachs, he has offended quite a few people over the years.

The Minister of Finance holds the power to formulate national economic policies and distribute benefits; in essence, he plays the role of distributing benefits and giving money to others.

With this position, Paulson was fully capable of repairing past adversarial relations and accumulating deeper political capital for himself and his family.

By consolidating his power in both the political and business spheres, Paulson could have planned the perfect outcome for his family.

So it wasn't that he wanted to choose the elephant, but rather that he had no choice but to choose the elephant.

Because on the donkey's side, the competition for that revolving door is so fierce that even the president of Goldman Sachs might not be able to snatch it up.

Another point is that Albert Gore, the candidate on the Donald's side, is closer to Lehman Brothers.

But the elephant is different. As long as the elephant is in power, Paulson's position as Treasury Secretary is a sure thing, or at the very least, he will be an economic advisor.

Richard didn't think Ernst was making a statement, and suddenly spoke up as if to talk about something unrelated.

"Did you know? John Thornton's six-month bonus at Goldman Sachs has been confirmed, a whopping $7200 million." Ernst's eyes bulged slightly upon hearing Richard's news, then he muttered a curse under his breath, "How much money have you guys made in Asia, you bastards?"

John Thornton is the head of Goldman Sachs' Asia region. During the Asian financial crisis, Paulson was the general in charge of the overall situation, while John Thornton was the general leading the charge.

The dividends were $7200 million in six months, which is $1.5 million a year.

If John Thornton, as a regional manager, can receive such generous rewards, then what about Paulson, who is in overall control?

The amount of dividends they receive is probably an astronomical figure.

What happened to the core team at Goldman Sachs who were involved in the Asian financial crisis operations?

The dividends alone could very well exceed one billion US dollars.

Capitalists are willing to spend money, but only if you can make a lot of money.

In Ernst's judgment, these giants alone have made more than tens of billions of dollars in profits in the financial markets.

This is only the profit from financial transactions; the real highlight is the subsequent asset harvesting.

Asian companies and high-quality assets severely impacted by the financial crisis will become targets for low-priced acquisitions by Wall Street capital, with potential returns that are immeasurable.

"So he betrayed us, betrayed the entire Wall Street." Richard's voice was filled with intense emotion; this was the key point he wanted to make. "This plan was spearheaded by Donald, who handed over the throne of leadership to Goldman Sachs, but Paulson and Goldman Sachs have been betraying us even more blatantly."

us?

Ernst sneered inwardly.

The position of U.S. Treasury Secretary, which is obtained through the revolving door of Wall Street, is mostly held by people from Goldman Sachs.

But this year was different, giving Lehman Brothers an opportunity.

If Richard Fuld is re-elected, he will likely be the next Treasury Secretary of the United States.

Unfortunately, fate had other plans for Goldman Sachs.

In reality, it's not certain who will win or lose in the upcoming election.

The cowboys used dirty tricks during this process, and if there were a revote, the outcome might not be irreversible.

However, Gore, the candidate for the donkey, voluntarily gave up the right to a revote in order to uphold so-called American justice and American legal principles, which allowed the little cowboy to sit in the white house.

"Goldman Sachs got the most of the pie, but still didn't change its attitude. Paulson intensified his support for the elephant, and Goldman Sachs tacitly approved of his behavior."

This is another tradition on Wall Street: profit above all else, with no right or wrong. As long as Goldman Sachs' board of directors doesn't take a stand, Goldman Sachs isn't on the side of the giant.

As for Paulson, it's his freedom to support whomever he wants.

"you.."

Ernst wanted to ask, "Shouldn't you be happy that Goldman Sachs is supporting an elephant?"

If the donkey wins, Richard will have one less competitor.

But he quickly put that idea out of his mind, because for Wall Street, the most important thing was whether the donkey could win, and only then did internal competition come into play.

As long as the donkey wins, they'll have at least another four comfortable years ahead.

Moreover, according to Ernst's information, if Donald is re-elected, Richard will inevitably become the Treasury Secretary.

"Do you want me to give my opinion?" Ernst asked casually.

He declined Paulson's invitation, adding a quote from Wall Street tradition, seemingly indicating his reluctance to side with the giant.

But just like Goldman Sachs is doing now, Wall Street always puts profit first.

Paulson's offer was very tempting, and Ernst now wanted to know what the donkey could offer. "I..." Richard paused, "I want to meet with you."