Chapter 726: Smith II

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"What is especially excessive is that when Merrill Lynch was implicated in the Enron scandal, he scapegoated Robert Foster, William Foss, James Brown, and Dan Bailey, the head of investment banking, while ignoring the fact that the Justice Department abused its power and sent them to the federal prison in Southern Virginia. ”

By now, Merrill Lynch's culture and the professional ethics that it has adhered to for nearly 100 years have been completely abandoned by Stan O'Neill. Today's Merrill Lynch is no longer a great cause for Merrill Lynch people to work together, struggle, and maintain, but a tool for Stan O'Neill's own personal interests. ”

As he spoke, Guo Shouyun handed the other party a piece of information he had in hand, "Now Merrill Lynch's risk exposure in real estate mortgages and high-risk bonds has surpassed Lehman and Bear Stearns, with a leverage ratio of more than 22 times." It has doubled since Stan O'Neal took office in 2002, and Merrill Lynch's exposure continues to expand as the U.S. real estate boom continues. But no one can accurately predict the market, and blindly expanding the debt will only push the company to the brink of destruction. ”

After a pause, "Mr. Smith, who has been with Merrill Lynch for 28 years, and as the son of the respected Mr. Winthrop Smith, the founder of Merrill Lynch, I feel it is important for you to step up and help Merrill Lynch get back on the right track." ”

After reading the information that Guo Shouyun gave him, Winthrop Smith Jr. said: "Mr. Guo, I really don't agree with Stan O'Neill's management of Merrill Lynch, but now I have been away from Merrill Lynch for a long time. All Merrill Lynch shares in his hands have also been sold. So, I can't help you with the acquisition of Merrill Lynch. ”

"And why do you convince me that you, who own Merrill Lynch, aren't the second Stan O'Neill?" As far as I know, Phoenix Bank is the largest investor in real estate-based CDOs in the United States. When it comes to danger, you are much more dangerous than Merrill Lynch. ”

"Mr. Smith has left Merrill Lynch, but that doesn't mean you've lost influence within Merrill Lynch. As far as I know, there are a lot of your friends on the Merrill Lynch board, especially Ms. Jill Conway. … As for the CDOs held by Phoenix Bank that you just mentioned, if Mr. Smith had done a detailed investigation, he would have found that we had hedged each of our CDO investments. Even if the entire market collapses, it will not make the operation of Phoenix Bank systematically risky. ”

"In addition, many facts in the past five years have proved that I still have some experience in investing in the financial field, and I am confident that I will not let the company suffer too big losses. ”

"Mr. Guo is too polite. Your achievements in the financial investment field over the past five years can be described as 'brilliant'. ”

Guo Shouyun smiled and said, "Then Mr. Smith agrees to help me, I promise that you will return to Merrill Lynch and become our president and chief operating officer to help Merrill Lynch regain its lost culture." ”

Winthrop Smith Jr. thought for a moment, then shook his head with a wry smile.

"Although it is a bit embarrassing to say now, Mr. Guo's honesty makes me feel that I should not hide it. In fact, when I left in 2000, no one on Merrill Lynch's board of directors had sent me an e-mail or made a phone call. Including the Ms. Jill Conway, whom you just mentioned, with whom I have worked for more than 20 years. And according to what I've learned, Merrill Lynch's management and board of directors have been completely severed under O'Neill's control. ”

“… In 2000, there were 23 members on Merrill Lynch's Executive Committee. But after O'Neill became Merrill Lynch's chief executive in 2002, 18 people were resigned or left on their own. By 2003, Tom Patrick and Ashad Zakaria had also been fired, and Tari and Komansky, as well as Jerry Kenny, the company's chief strategy adviser, had lost their influence over the company. ”

“… Merrill Lynch's management is now made up of Stan O'Neill's cronies. In addition, because Merrill Lynch's stock price has recovered, the board of directors is also very satisfied with O'Neal's decision. So, unless you can get O'Neill's consent, or get an absolute controlling stake in the company. Otherwise, it will be difficult to defeat him by influencing the board. ”

Guo Shouyun frowned, he didn't expect Stan O'Neill's control of Merrill to this extent.

"While I don't agree with Stan O'Neill's business strategy, his political skills are admirable. If it weren't for the fact that there had never been a black man among the presidents of the U.S. government, I think he would be qualified to run for office, and he would have a very good chance of success. ”

Looking at his sigh, Guo Shouyun wanted to say that the United States will soon usher in the first black president in the history of the founding of the country. But the thought crossed my head and vanished. The most critical thing now is the acquisition of Merrill Lynch.

"So, if I want to buy Merrill Lynch, I have to find a way to do it in equity?"

"At least judging by the current situation in Merrill Lynch!"

Guo Shouyun nodded knowingly, "Mr. Smith, it's a great pleasure to meet with you today. If I succeed in acquiring Merrill Lynch, I hope you will return to Merrill Lynch to continue your tenure. ”

"I didn't do much to help, do you still need me?"

As a descendant of the company's founder, your return represents more of a return to Merrill Lynch's culture. In addition, your excellent work ability is also what we value. ”

"Thank you Mr. Guo for your compliment, and if you can succeed, I am very willing to continue to serve Merrill Lynch. Also, if Mr. Guo needs to know something inside the Merrill Lynch acquisition, I'm happy to provide everything I know. ”

"Then I'll say thank you in advance. Also, I would like Mr. Smith to be able to keep confidential about today's meeting, as well as what we mentioned earlier. ”

"Of course!"

After letting Wu Xiaojing send him away, Guo Shouyun looked at the distant car shadow and couldn't help sighing: "It seems that there is no chance to win the support of the board of directors of Merrill Lynch." ”

Wang Jue nodded in agreement.

"Wouldn't it be too risky to let him go, if he told O'Neill about our secret acquisition of Merrill Lynch, I'm afraid all our previous efforts would be in vain. ”

Over the past five years, Winthrop Smith Jr. has publicly expressed his displeasure with O'Neal on several occasions. It is also a fact that he sold Merrill Lynch's stake. If this hostile attitude is a performance, then there are few people who can perform it for five years in a row. In particular, he is also a representative of Merrill Lynch's conservatives. ”

"What are you going to do next?" Wang Jue nodded and said.

"Of course, it's seeking more shares in Merrill Lynch. It's just that those major Merrill Lynch shareholders are greedy wolves, and if we want to settle them, we ourselves will bleed. Guo Shouyun said with a headache.

"I believe that with your ability, even if there is a loss now. In the future, it will be earned back several times. ”

Looking at her smiling face and determined expression, Guo Shouyun smiled and nodded, and his eyes became deep.

"Time is the best helper!"

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。 m.