Chapter Eighty-Nine: The Alliance

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“… In fact, the reason why we shorted Enron on a large scale is mainly due to four points. First, in January 2000, Enron CEO Kenneth and Chief Operating Officer Jeffrey Jilin announced to analysts that Enron's high-speed optical fiber network formed the backbone of the Internet, benefiting from the popularity of Internet concept stocks, and Enron's stock price skyrocketed. But the Nasdaq crisis destroyed everything, fiber prices plummeted, and only 5% of Enron's 4,000-mile fiber network was profitable. But Enron concealed this fact. ”

"Second, in 1998, Enron invested nearly $3 billion to acquire the British 'Wessex Water Company'. Unfortunately, the UK's water regulator asked Wessex to cut its interest rate to 12% in April 2000 and to upgrade its aging facilities at a cost of $1 billion. Wessex Water, meanwhile, has a net profit of less than $100 million and a debt of $2 billion. I think Mr. Jamison understands better than I do, and maybe it won't be long before we hear about it going bankrupt. ”

Third, in December 1993, Enron signed a 20-year power purchase contract with India's Maharashtra Power Authority, which allowed Enron to invest $20 billion in the state to build a giant power plant with an annual capacity of 2,015 megawatts. Unfortunately, after the Congress Party stepped down in '95, the Indian government assessed that the power project was too expensive, stopped buying electricity from the power plant and stopped construction, and until now, four years later, the project has not been restored. Enron lost more than $3.5 billion on the project. ”

"Fourth, from the beginning of this year to the present, more than a dozen Enron senior executives, including Enron Chairman and CEO Kenneth, President and Chief Operating Officer Jeffrey Jilin, Chief Financial Officer Andrew Fasto, and Chief Accounting Officer Richard Cowes, have reduced their holdings of Enron shares by a total of 21.857 million shares, making a profit of more than $1.5 billion. If Enron really wanted to be as healthy as they said it was, and that the future was bright, all the management wouldn't have reduced their holdings at the same time. Unless they are fools and fools, how can they let go of the opportunity to make money in vain?"

In addition to the above four points, Enron has suffered significant losses in more than a dozen investments, such as water in Argentina and natural gas distribution in California. The reason why they have not been paid attention to until now is not that no one has paid attention to them, but that they have been hidden under Enron's packaged M&A projects one after another. , Bank of America provided loans, and the Big Five international law firm Arthur Andersen covered up the loss of revenue for them, and Enron's balance sheet was always profitable. But 'paper can't contain fire after all', and with the accumulation of Enron's debt, there will be a day when the Ponzi scheme will not be able to circulate. And once exposed, whether Enron can still exist depends on its luck!"

After Guo Shouyun glanced at John Jamison, who was shocked, he picked up the teacup and took a sip steadily.

After taking a deep breath and suppressing the shock in his heart, many years of workplace experience made John Jamison quickly stabilize his mind, and after smoothing out his thoughts, he stared at the young man opposite with a solemn expression, as a senior partner of Goldman Sachs, of course he was not ignorant of Enron's losses, but which company did not have losses? As long as the losses were within a reasonable range, no one would care. That's how Enron felt to him before.

But if everything Guo Shouyun said just now is true, then there is no doubt that Enron's losses have reached the point of endangering the company's survival!

"Mr. Guo, what you just said is all out of strict adjustment? I'm sorry, I know it's a bit rude to ask like this, but it's too sensational and too important!" John Jamison said with a solemn expression.

"It's okay! I can understand Mr. Jamison's mood at this moment. If I put myself in Mr. Jamison's place, I'm afraid I would have asked about the source of the news. After a pause, looking at the middle-aged man staring at him in front of him, Guo Shouyun smiled and continued, "Actually, Goldman Sachs' ability to collect business intelligence far exceeds mine. As a senior partner at Goldman Sachs, Mr. Jamison only needs to use his resources to investigate and understand whether the news I just said is true or false. ”

After a moment's thought, John Jamison nodded. As one of the top five investment banks on Wall Street, Goldman Sachs is still behind Morgan Stanley and Merrill Lynch in terms of market capitalization, but its ability to gather business intelligence is definitely better than that of most financial institutions.

"Mr. Guo, I'm glad you can tell me this honestly!" John Jamison said sincerely.

After smiling and nodding, Guo Shouyun's eyes flashed.

"Mr. Jamison, we in Phoenix have launched an asset management plan for individuals, I wonder if Mr. Jamison is interested in investing some money in it?"

"Oh?" continued John Jamison with interest, "can I know what it is investing in?"

"The field is not fixed, maybe it's the stock market, maybe it's futures, maybe it's the bond market. We are looking for high profits. ”

"I don't have much money right now, so I'll invest $1 million!" John Jamison thought for a moment.

There is a saying that 'reciprocates the peach', and this investment can be regarded as a return to the Enron information provided by Guo Shouyun just now. As for whether the other party will lie to him? John Jamison still doesn't believe that Guo Shouyun would be so unwise. As I said before, with Goldman Sachs' ability, it only takes a little investigation to understand the truth of these news.

"Doesn't Mr. Jamison ask about the fees for this asset management plan?"

"When Mr. Guo told me the news of Enron just now, didn't he ask for any legally valid guarantee?"

"So we're taking what we need!" Guo Shouyun smiled.

"No, I actually made a bargain!"

Everyone is a smart person, if John Jamison later confirmed that there was indeed a major scandal in Enron's finances, with the financial power he wielded, the huge gains from shorting the energy giant were far more than $1 million, too much!

"Mr. Guo, I wonder why you tell me all this important news? Even if it is out of politeness, you can make up a completely random reason to prevaricate. After glancing at Guo Shouyun, John Jamison said in a condensed voice.

Actually, this question is not difficult to answer. Enron and the allies behind it are too many, whether it is ****, Arthur Andersen, Bank of America, or Enron itself has far more influence in the American financial community than me. To fight them, I also need some reliable allies. Mr. Jamison and Goldman Sachs are the best and most realistic choice!" Guo Shouyun said bluntly.

"Looks like I'm in a good time!?"

"Not bad!"

John Jamison nodded, "But I remember that when I was answering the question at the beginning, Mr. Guo seemed to emphasize that he would separate me from Goldman Sachs?"

"That's right, if I don't make a distinction, then I'm answering you on behalf of Goldman Sachs. In this way, I got Goldman Sachs' goodwill. But Goldman Sachs is just an institution composed of countless people, and the institution itself has no feelings, and although the people in the organization will cooperate with me, they will never become friends with me. But Mr. Jamison is different! Figuratively speaking, it is like fraternity and dedication, the result of fraternity is destined to be lonely, but dedication can often harvest family affection and friendship!"

"It's a wonderful metaphor, and Mr. Guo is also very honest. I'm willing to make you a friend!"

Looking at John Jamison's right hand that took the initiative to stretch out, Guo Shouyun also handed over his right hand with a smile on his face.

"Shall I call you John, then?"

"Of course. But I need to change my name!"

Guo Shouyun smiled and nodded, "Just call me Bruce, my friends call me that!"

"OK, Bruce. You know that the reason why I asked you to meet today is that Enron's matter was originally just incidental, and the most important thing is that Goldman Sachs wants to cooperate with you!"

"Cooperation?"

Goldman Sachs wants to issue an ABS asset-backed security for your book!"

After being slightly stunned, Guo Shouyun asked curiously: "I don't plan to issue a second asset-backed securities now, why did you find me?"

"It's just profit-driven. The five novels you wrote, such as Pirates of the Caribbean and Fantastic Beasts and Where to Find Them, sold an average of more than 3.5 million copies per month. "Smart: Ghost Record" has a box office of more than 130 million in the United States, and if you add the international box office, it will definitely exceed 200 million US dollars. Coupled with film and television peripherals, you can get a total revenue of 400 million. In the history of Hollywood films, this is second only to "Blair the Witch" in terms of revenue. ”

“… As a result, the ABS asset-backed securities issued through these five books have been extremely popular in the bond market, and the price has risen by 15% from the issue price, and Merrill Lynch has made a lot of money on it. Goldman Sachs, as a peer, naturally wants to get involved. It just so happens that "Fast and Furious", "The Hangover" and "Finding Nemo" are not as good as "Pirates of the Caribbean", "Fifty Shades of Grey" and "Fantastic Beasts and Where to Find Them", but they are also super bestsellers with monthly sales of nearly one million, and investors will definitely buy it. ”

"I see!" nodded suddenly, Guo Shouyun shook his head slightly after thinking for a while, "I'm sorry, John." I am not averse to issuing a second tranche of ABS asset-backed securities, but now is not the time!"

"Why?"

"Because I want more! Three books can't support what I want!" Guo Shouyun said calmly.

Looking at his deep eyes, and the naked ambition in his words, John Jamison didn't think so. As a practitioner in the financial industry, he admires those who are ambitious and capable at the same time, and only such people can step into the upper echelons of Wall Street and even American society.

"Can I understand that when you write four, five, or more, you'll issue a second ABS?"

"Not bad!" Guo Shouyun nodded without concealment.

"Can I book this opportunity in advance now?" John Jamison said with a twinkle in his eyes.

"If it were someone else at Goldman Sachs, I would definitely say no. But since it's John, I'll promise to give Goldman Sachs priority under the same conditions!"