Chapter 523: Revisiting Friends (Part II)
Banking, securities, and insurance are the three cores of the financial industry, and Zhou Shi's strength in these three core areas is not strong. If he just wants to make money, then forget it, but if he wants to become a consortium, he can't do without either.
If you think about it, even if East West Bank buys IndyMack Bank, its assets will not reach 100 billion US dollars, and it will only be a medium-sized bank. After the merger, Tianhe Securities may be the largest securities company in the world, but it is only in a single traditional securities field, not a comprehensive investment bank, it is not good at IPO, financing mergers and acquisitions, asset management, etc. As for asset management, whether it is Galaxy Capital or Sixiang Fund, they are actually just getting started. The real client funds are less than $50 billion, which is too weak compared to the nearly trillion-dollar asset management scale of some funds. And these deficiencies are not something that can be remedied in a short time. In this case, if a relatively complete industrial chain can be built in the financial field, it may be able to produce a good synergistic effect.
Warren Buffett's flagship can be said to be an insurance company, and making full use of insurance funds is the main reason for the growth of his wealth, and of course, his excellent vision is also one of the reasons. Even if Zhou Shi's future recruitment of talents is not as good as Buffett's, as long as it maintains a stable business style, AIA with sufficient cash flow will not be too risky. The fact that AIA in the previous life was able to have a market value of 100 billion US dollars a few years later reflects that AIA is really a good company.
If it can successfully acquire AIA, then Galaxy Capital, which owns the three core enterprises of East West Bank, Meibang Securities (renamed after the merger of Tianhe Securities), and AIA, plus the domestic Modu Securities and Huamei Xiangjiang Bank, the whole company will basically no longer be short of money, and it can basically be said that it has a little bit of its own say in the world financial circle.
"Why are you so confident in acquiring AIA?"
"This matter is very complicated, when do you think the subprime mortgage crisis began?" Zhou Shi didn't know what to think, and he pulled up to the subprime mortgage crisis.
"Isn't it 07?" Hu Guniu didn't know what Zhou Shi wanted to ask
"Or why did AIG fall so deep into the subprime mortgage crisis?"
"Could it be that there is a story behind this?" said Hu Guniu
"AIG's operations have always been relatively stable and conservative, but when did this start to change?" Zhou Shi continued
"It should start after their legendary CEO, Maurice Greenberg, right?" Hu Guniu also thought a lot at this time.
"His presence harms the interests of a lot of people, oh, it should be said that it hinders the benefits that a lot of people may have. "Zhou Shi
"Well, that's right!" said Hu Guniu
Morris Greenberg became the CEO of AIG in 1967, transforming the company from a small $300 million company to a billion-dollar corporation. He has a very prominent position in the global insurance industry, and it is he who has promoted the development and progress of the entire industry. But after he was forced to resign in '05 due to an accounting scandal, a man named Martin Sullivan took his place and began to participate in the subprime mortgage market on a large scale. It is also unknown whether Greenberg's resignation was to make money in the subprime mortgage market or if someone was operating behind the scenes to detonate the subprime mortgage crisis.
In 08, AIG suffered huge losses and changed 5 chairmen in two years. Their problem came in August 2009, when AIG's strategy of being split into multiple parts was completed, and then-chairman Edward Liddy separated the positions of chairman and CEO. Harvey Groper and Robert Benmercher have been appointed as Non-Executive Chairman and Chief Executive Officer, respectively. Then inevitably there was infighting, with Harvey Grober pushing for AIA to go public independently, while Robert Benmerche advocated for AIA to be sold. At the same time, the boards of both Prudential and AIG are wavering. This information is not difficult to inquire about, but the previous relationship was not enough, and I couldn't hear these inside messages.
Zhou Shi left the United States suddenly, one to seek a breakthrough outside, and the other to divert attention. has just experienced a battle between the open and the dark, and at this time, there will be no fewer people staring at Zhou Shi, only more. If he is too enthusiastic about his allies, no one knows what will happen in between.
However, Zhou Shi has made such a big sacrifice in the United States, and he must always reap enough returns, make full use of the resources in his hands, and add enough information advantages, so that he can succeed. The reason why Galaxy Capital was not allowed to lead the acquisition this time was mainly for the sake of secrecy. Also for the sake of secrecy, he also introduced another acquisition to confuse the public.
"So you have the funds ready?" Zhou Shi looked at Zhao Weiguo in front of him
"That's right, we're ready!" said Zhao Weiguo
"Have you thought about the risks involved, even if there is a large loss, can you bear it?" Zhou Shi thought about it and asked directly
"We are very aware of the risks in this regard. "Zhao Weiguo
"This investment is just the beginning, if you can not be impatient, with the rise of national strength, you also have a great opportunity to acquire Hynix as a whole. "Zhou Shi
"Thank you for your auspicious words!" Zhao Weiguo
"Is there a chance for me to ask you to help?"
Zhao Weiguo's face collapsed suddenly, MD, people still can't be compared. It was really unpleasant to be pushed away by Zhou Shi all this.
"I think after this time, everyone is a very good friend, domestic and foreign husks, friend financing, do any of you want to participate, you can ...... with Da Mo and other institutions" Zhou Shi gave a bargaining chip again.
"Your request is too big, and there is no precedent, and the risk is very high," Zhao Weiguo
"I have enough collateral, what is the risk, are you afraid that I will go bankrupt?" Zhou Shi
"This kind of thing is beyond our ability to go through the formal way. "Zhao Weiguo
"Of course, I don't want to borrow from loan sharks, I want secrecy, the interest rate of the loan cannot be high, if I can't do it, I can borrow directly from abroad, and the interest rate will not be higher than that at home. "Zhou Shi, with such a large amount of money borrowed, the bank's operating costs are actually very low.
"But five billion dollars worth of loans is too much!" Zhao Weiguo
"I will set up a company in Hong Kong, invest no less than 5 billion US dollars of my own funds, and if there is any loss, it will be deducted from my funds to ensure the safety of this fund. And willing to accept limited monitoring for a certain period of time. "Zhou Shi
"I can only say try it, it's very troublesome!" Zhao Weiguo
"It's okay, it won't be so troublesome soon!" Zhou Shi
"Why?" said Zhao Weiguo
"Let's go and get your affairs done first!" Zhou Shi smiled and didn't explain, at this time, there were only a handful of people in China who knew that he had joined the Trilateral Committee.
"When will I leave? I'll order a special plane to South Korea!" Zhao Weiguo
"No, let's go to Japan first!"
(End of chapter)