Chapter 1221: Andy the Windfall (33/64)
When the Treasury Department and the Federal Reserve are still worried about the rapidly disappearing liquidity in the market, they are trying to match Goldman Sachs, Citigroup, MG Chase, MG Stanley, Midland Bank, etc. into possible mergers and acquisitions, in order to delay or rescue "cash flow"!
Whether it is the White House or Capitol Hill, vested interests shouting "Defend Goldman Sachs, Defend MG Stanley" have begun to attack everywhere with the help of lobby groups, in order to lobby for the next bailout plan to be successfully introduced.
It was at such a time when all kinds of news were flying all over the sky, asking each other for news, and the future economic future was uncertain and in a state of chaos, because they gave up the acquisition of Lehman Brothers, they wanted to pit the Americans, and then bought Lehman's high-quality assets at the price of cabbage, but in the end, the Barclays Bank acquisition team had just landed at Washington Dulles International Airport, and they were exhausted and couldn't even take a break, so they got in touch with Alvitatre, hoping that the two sides could meet immediately to discuss and study the acquisition-related matters.
When Andy was in the luxurious conference room of the CP Hotel with Robert Diamond, the president of Barclays Bank, looking at the president in front of him with a Chinese face, slightly frosty temples, a low voice, and a slightly bitter smile, Andy really wanted to sigh with the other party, "Zhou Lang has a clever plan to settle the world, and he lost his wife and lost his army." ”
You must know that the total market value of Lehman Brothers a year ago was more than $33 billion, although Lehman Brothers' assets in North America were about $5 billion, but the investment banking and capital markets business in the North American market was also quite valued at that time.
Andy was able to cut off this part of the assets with $250 million, which is simply a stab in the hearts of many people who are ready to make a big profit.
In fact, at this stage, there is no leisure to entangle when the two sides meet, after all, Barclays is the more urgent party, that is, Andy offers a price of 800 million US dollars, which is acceptable for Barclays Bank by gritting its teeth, because even at this price, they are making a bargain, well, they can only comfort themselves like this.
In about two hours, the two parties reached an agreement on a transaction, which included Lehman Brothers' North American investment bank, which has bonds, equity sales, trading business, and related investment business. The number of employees of about 8,000 was all retained, and the transaction value was 800 million US dollars, and Andy did not make the slightest concession.
At five o'clock in the afternoon, Andy and Robert Diamond, president of Barclays Bank, held a press conference in the conference hall of the CP Hotel, and the number of reporters who heard the news reached hundreds.
In the amazed and envious eyes of many reporters, the signing ceremony was completed, and the deal was officially reached, as the news spread quickly, those former Lehman employees saw that they were sold without knowing it, and their mood can be imagined, but no matter who they are, they will not care about their feelings, after all, they should burn high incense if they can keep their jobs in the United States at this time.
Whether it is Wall Street or Washington, looking at this latest news, it is really with different expressions and mixed feelings, but it is more of the admiration and envy of ordinary people, and the five-body investment that admires Andy's earning ability is effortless, and in two days, he made a net profit of $550 million.
The American media, on the other hand, finally seized the opportunity to ridicule the British, who wanted to fall into the well and take advantage of the fire, and the news boasted about Andy's shrewdness while ridiculing the British as much as possible for their 'self-inflicted clever schemes'. Lehman went bankrupt, not only causing their own stocks to plummet, but also being pinned to the ground by Andy Smith and obediently slaughtered.
At a time when the U.S. economy is in decline, it adds a touch of cheerfulness.
The people from Barclays Bank euphemistically resolved Andy's invitation to a celebratory reception, but after the press conference, they hurriedly took people away, Andy said that he was very understanding, and he didn't want to stay with him for a minute.
On the way home, Andy received a lot of congratulatory calls, Warren's envy, Goldman Sachs, MG Stanley's pleas for help, his woman's admiration, and a frustrated Paulson who wanted help.
"Boss, what's wrong?" Al asked after seeing his boss hang up Paulson's phone, and he couldn't help but ask.
"He wanted me to fulfill my promise and help him get moral immunity! Andy honestly didn't want to do him a favor, because that would give Paulson the freedom to help Goldman Sachs officially and freely!
In the process of this bailout, he will not have to worry about being accounted for by the autumn when he makes any decisions, so he will be very bold.
"Boss, promise him that moral immunity is very important to him, but it should be very simple for you to fascinate than the next bipartisan fight in Congress.
Besides, even if he can help Goldman Sachs without worries, MG Stanley, it doesn't have any effect on us, you don't need to target him in this matter, Wall Street has indeed reached the point where it has to be saved by blood transfusion, none of us want it to collapse, do we!"
Hearing Al's advice, Andy nodded slightly, his eyes squinted slightly at the street scene of Washington outside the car window, many shops were closed early, and there were few pedestrians on the road, and they were all in a hurry.
When he returned home, he was naturally greeted by his mother's admiration and happy smile, and Auston was also in a very good mood, and he was numb to the earning power of his demonic son.
After chatting for a while, Andy told Auston about Paulson's call for help, and Auston frowned and pondered for a moment, then said, "According to what I have learned, Paulson has submitted a plan to the president to acquire the assets in question. A grant from Congress is needed to purchase a mortgage on a problematic home in the market. The amount could be as high as hundreds of billions of dollars, and this plan is sure to cause huge controversy in both parties in Congress, and the opposition can be imagined.
As for the moral immunity, it only needs to be issued by the White House legal counsel and the Treasury Department, and the Treasury Department naturally has no difficulties for him, and now the White House has been stuck, which is also what your grandfather meant.
Since you promised the Smith family that they would help him once, then this moral immunity is undoubtedly appropriate, and it can be easily achieved without the need for us to expend our strength. ”
"I see. Andy nodded, then picked up the phone and called his grandfather Smith Sr., and after a brief chat, he got to the point and talked about Paulson.
In this regard, the old Smith agreed almost without hesitation, hung up the phone, Andy slandered in his heart, this may not be the result of his grandfather's old fox's deliberate calculation.
The next day, on the morning of September 18, an interesting situation "came out of nowhere" when the White House counsel and the Treasury Department issued Paulson with a waiver.
Sitting in the boss's chair in the Treasury Department's office, Paulson looked at the exemption document in his hand with complicated eyes and couldn't help but smile wryly, after the collapse of Lehman Brothers, Paulson realized that he needed more authority to carry out the bailout operation, and that power needed authorization from the White House and Congress.
He may be able to threaten and order the greedy vampires to do what he commands, but once back in Washington, he is the one who needs to maneuver and compromise in the political vortex, and the political reality in Washington is depressing.
Just when Paulson was sighing a little helpless, the phone on his desk rang again, and he answered it without the slightest hesitation, and then his face became even more cold and serious.
"You're going to solve the problem by the end of the week. Paulson reminded the other party a little helplessly.
"Hank, do you think I should sell Morgan Stanley?"
Hearing the other party's somewhat depressed tone, Paulson hesitated, and finally spoke: "The consequences of Morgan Stanley's collapse are too serious, John, I believe that if it works, you should sell it."
In the evening, I will raise this issue directly with the top management of the Celestial Empire, if they are interested, as for the Mitsubishi UFJ Financial Group, to be honest, I doubt that the footbasin man is moving fast enough, because Morgan Stanley's situation is imminent, and I don't want to run into a situation such as being shabu-shabu by the British. ”