The American Kill Line: I Can Predict the Future

At 9:00 a.m., Merrill Lynch’s New York executives held an emergency meeting.

Merrill Lynch is not just a brokerage firm; it also directly participates in investments.

The main topic of this meeting was the German "naked short selling" incident.

However, before that, the manager in charge of corporate derivatives and foreign exchange raised a small question:

"Tony, I heard that one of your clients made a considerable profit yesterday?"

Tony, sitting at the very edge of the long table, immediately answered the question:

"Yes, Mr. Schiff. Mr. Hunt almost fully capitalized on the gains after Germany announced the ban on naked short selling on the 17th, and his profits were very good."

Jonathan Schiff chuckled. "I've heard his story. A lucky man of the century. Looks like he's really had good fortune. Did you check his background?"

Tony nodded: "I checked. Apart from his father, Frank Hunter, being a member of the Texas NRA, his own life over the past thirty years has been quite ordinary."

"NRA?" Jonathan Schiff's expression darkened slightly, his tone remaining neither sad nor happy.

The NRA, or National Rifle Association, claims to have over 400 million members.

Especially in Texas, its political status can be described as "the invisible ruler".

"What is Mr. Frank Hunter's standing in the Texas NRA?" a senior executive asked.

Tony replied, "His family has lived in Texas for generations; they are considered core members."

"So, is there any connection between this Hunter and that Hunter?"

"Let me answer that question," said a co-head of Merrill Lynch's global capital markets division. He was a veteran of the US military and was primarily responsible for Merrill Lynch's global market management, essentially acting as its intelligence and security department.

With a cigar in his mouth, he explained, "I had people conduct an in-depth investigation, and this kid's family has no connection with the oil tycoon's family in terms of time."

The so-called in-depth investigation refers to investigating Ron's family relationships beyond three generations, as well as all his experiences over the past thirty years.

It also includes his relationships with the people he has recently been in contact with.

After he said that, many managers in the meeting room didn't pay much attention.

In layman's terms, they are worried about "insider trading" happening here.

At this moment, the CEO, who was in charge of Merrill Lynch's global debt and equity capital markets offerings and was seated at the head of the table, gently tapped the table:

"Tony, give him a break when the time is right. Okay, that's enough for now. Let's talk about the key points of Merrill Lynch's upcoming strategy..."

Providing convenience is not simply reflected in the list.

This is more evident in the fact that Merrill Lynch, in certain situations, would shield Ron from some of the trouble.

This also means that Merrill Lynch will no longer list him as a questionable client.

Instead, they are truly included in the high-net-worth client category.

Two days later, the euro experienced another surge.

In the past two days, the foreign exchange market has been flooded with numerous positive news items about the euro.

Frequent statements from leaders of several EU countries have further convinced the market that the EU will intervene in the foreign exchange market.

The euro reached a high of over 1.2590 against the dollar.

This increase represents a full 3.68% rise from the lowest point when Germany announced "naked short selling" on the 18th.

Inside Merrill Lynch, Tony hurriedly asked, "Victor, how much?"

Viktor glanced at the string of numbers on the screen, swallowed hard, and said in a trembling voice:

"The stock rose 415 points, with a total profit of $6.583 million from selling."

Both involved buying euro options for $5000 million, but the profit from closing the position last time was incomparable to this one.

The main reason is that the cost was lower this time, and more nominal principal was leveraged.

Victor had seen clients who made this much money before.

Among his past large client base, it is not uncommon for clients to have profits exceeding this amount.

But no client has ever gone from $1 million to $8.9 million in just five days.

Not to mention him, even among all of Merrill Lynch's past high-end clients, there are very few people like him.

These people are now among the very top tier of Wall Street.

"Could it be that Ron will become one of them too?"

Viktor pondered this in a daze.

"Stop staring blankly, buddy!" Tony said gravely. "Tell Ron I need to see him."

Upon seeing this, Victor quickly realized what was happening, his expression changed drastically, and he immediately dialed Ron's number:

"Ron..."

"Haha, Viktor, are you here to congratulate me? But don't be too hasty, I'm going to do it again. This time it'll take longer, you'll have to help me..."

Ron on the other end of the phone was in a state of extreme excitement, and even after staying up all night, he couldn't calm down.

"Listen, Ron! You're home, right?" Victor interrupted.

"Hmm? What's up?"

"Tony and I will be at your house in twenty minutes. Until then, don't do anything."

"Don't ask anymore, we'll talk about it when we get there."

After hanging up the phone, Tony and Victor went over some work to each other, and then Tony headed from Merrill Lynch to the old-established wealthy neighborhood.

About ten minutes later, the two arrived at Ron's house.

Seeing that the two men looked strange, Ron asked in confusion, "Tony, Victor, what's wrong with you...?"

"Find a quiet room."

"Okay, come with me."

Ron led the two to the study, a vague unease creeping into his heart.

Alexandra knew the men wanted to talk, so after serving coffee, she tactfully left the room.

The door had barely closed when Tony stared at Ron: "Tell me, Ron, where did you get your information?"

Ron's heart tightened, and he instantly became alert, but he feigned confusion on his face, frowning as he asked:

"What do you mean? What's your source? I just guessed based on market trends; I just got lucky."

"Listen, Ron, we're not doubting you, we're helping you."

Tony found Ron's lame excuse amusing, and softened his tone, though it remained menacing:

"You're in great danger, you know that?"

Ron's face darkened, feigning anger: "You suspect me of insider trading? Fuck! If I had connections to get inside information, would I have been swindled out of everything by Wall Street con artists?"

The two men stared at Ron for a long while.

After a moment, Tony's expression softened: "I'll take that as true."

He sat down, took a sip of his coffee, and looked at Viktor beside him:

"Victor, Ron is your client. Tell him about the current situation and what he needs to do next."

Since the subprime mortgage crisis, the SEC (Securities and Exchange Commission) has had almost zero tolerance for short-term, abnormally high profits.

Ron's recent precise trades have triggered the SEC's red alert line.

This is no longer a question of whether there is evidence or not.

Sometimes, once suspicion arises, the charge has already been established!

If Merrill Lynch hadn't shielded them and provided cover, it wouldn't be them arriving now, but rather SEC investigators.

The IRS (Internal Revenue Service) might follow suit.

Whether it's insider information or financial fraud, they have plenty of reasons to investigate and interrogate.

"Fuck! Damn it!!"

Ron, belatedly realizing what was happening, quickly asked, "So, what do I need to do?"

"That's why we came to find you."

Victor didn't waste any time and immediately gave Ron the execution plan:

"I heard you registered a fund company? That's good, at least you're aware of it."

"But that's not enough. Your first step now is to register a hedge fund in the Cayman Islands as soon as possible."

"Then, in your own name, make donations to the Metropolitan Museum of Art, the Rockefeller Foundation, and New York-Presbyterian Hospital. Oh, and you graduated from the University of Texas, right? Don't forget that university."

Ron had virtually no connections in New York, and the first step to securing his livelihood was to engage in charity work.

Viktor also selected recipients of his donations after a screening process.

The goal is the second step—to obtain a ticket to high society.

"This needs to be done quickly. Let us know once it's done, and Merrill Lynch will introduce you to the Core Club."

Core Club is a top-tier elite club on Wall Street.

Those who can get into this place are all top investment banking executives, politicians, and members of family conglomerates on Wall Street.

It is a status symbol of Wall Street's high society.

"Don't forget about this year's midterm elections," Tony interjected appropriately.

“Yes, and there’s the midterm elections.” Victor looked at Ron with a complicated expression. “You’re really lucky, not just in financial investments. This year is the midterm elections, and my advice is, since you’re from Texas and your father is an NRA member, to make donations to the Republican legislators in Texas.”

"If you yourself are not a staunch Republican, then moderate Democrats in New York can also donate."

"Protection fees?" Ron couldn't help but scoff.

"It's a regulatory exemption!"

"Okay!" Ron shrugged. "Anything else?"

Victor shook his head slightly and looked at Tony beside him.

That's all he knows, and it's a common hedging strategy used by Wall Street investors.

Tony lit a cigar on the table, thick smoke billowing before his eyes, and slowly said:

"Ron, if you're willing, I suggest you go back to your hometown soon and acquire a local energy fund with a size of no less than $5000 million, or become its major shareholder."

To put it bluntly, Ron's foundation was too shallow.

Even though his father was a core member of the NRA, he couldn't offer Ron much help now.

"Is this really necessary?" Ron felt a pang of regret.

They finally earned nearly 9 million yuan, and at this rate, they'll have to spend almost one-ninth of it.

"Absolutely necessary! I hope that when you go back, you'll spend money like crazy—on energy, agriculture, and so on. Don't worry about whether you make money or not, just spend it all."

He opened an offshore hedge fund to show Wall Street investment banks that he was not a selfish person and that everyone could make money together.

Needless to say, charity, besides tax benefits, is more of a ticket to high society.

This is where your network starts.

In addition to gaining regulatory exemptions, donating to political parties is more about building a foundation for future political connections.

Especially in New York, party donations can be directly handled by local regulators.

As for the acquisition of Texas energy funds and agriculture-related companies, it can be understood as a form of protection.

With its stronghold in Red State, Texas's energy and agricultural resources will protect it.

"Ron, Merrill Lynch can temporarily hold off the SEC for you, but not for long. You must get this done within ten days. Now you can contact your lawyers and have them assemble a legal and tax team for you, the sooner the better."

Finally, Tony said with a smile, "Ron, I hope that Merrill Lynch and its clients will enjoy a certain share in your future investments!"

The reason he, or Merrill Lynch, provided the strategy and assistance was simply because they were optimistic about Ron's future.

It's a kind of disguised investment, I suppose.

It's okay if you fail.

It's just a waste of breath.

But if they win, especially for Tony, who is now at the bottom of the company's executive ranks, it would be a huge win.

If possible, he wants to go further.