Chapter 16: The Price of Arrogance, Citi on the Verge of Bankruptcy!

(About Citi at Prince from Prince's Autobiography: Investment Maniac)

The day after secretly returning to China, Jia Lei rushed back to country M with his investment advisory team.

And in another corner of the globe, Chris and Reed meet.

Unlike Reed, the chairman of Citibank, Collins is soberly aware that Citibank is already facing a serious underinvestment dilemma, and he and Reed have discussed many times how to solve this problem.

This is quite a tricky problem because it is not something that can be solved by raising some money alone. This portion of the money raised must be seen as part of the bank's long-term strategic planning from the perspective of financial markets, and not just a temporary channel to solve problems.

In other words, such a large amount of money will stay in Citibank for a long time and will have to be reinvested or paid to depositors, and this money is not guaranteed by the Federal Reserve unlike depositors' investments!

Once Citibank goes bankrupt, the investor is very likely to lose all his money! What is even more terrifying is that the investor may also be burdened with the debts and responsibilities left over from the bank's bankruptcy because of his status as a shareholder of Citibank!

Reed has a secret conversation with Collins!

"I'll fly directly from the island country to the corrupt country to discuss with you how to solve this trouble, and I will also discuss the problem of investment banking with you. Because investment banks have their own views on what I want to do, and their views often reflect the changing trends in the financial markets, it is feasible to adopt the investment bank's perspective. Citibank's chairman told his partner, Gillins, an investment adviser.

****

To win the trust of the financial markets, Citibank's bosses must at least start negotiations with some promising investors.

As Mr. Reed had planned, he and Collins met as scheduled in London and had difficult, lengthy discussions as they tried to find a way to make good on what they had promised to solve Citibank's looming problems.

Collins has taken the issue seriously because he has come under pressure like never before – he has found that investors in country M have been lukewarm to his calls for support.

Domestic investors in country M are too cautious to get involved in Citibank's investment, so they refuse to invest for many reasons. In Collins' view, many investors want to wait for Citibank's condition to deteriorate and then buy Citibank shares at a cheaper price.

But Citibank can't wait for that day, their situation is far more serious than what the outside world sees!

By the time Reid flew to London to discuss the matter with Collins, Citibank was in jeopardy.

**

The amount of money that needs to be invested in Citibank is huge – the initial investment is about $2.5 billion, which will gradually increase to $4.5 billion.

Citibank Group believes that only a few well-funded groups can solve their crisis.

American International Group (AIG), the world's leading insurance company, has decided not to support it, like General Electronics and General Motors.

Citibank Group has been looking to form an investment group that can invest in each other within the group. Citibank's vice chairman, Paul Collins, was disappointed that investors in country M were not supportive, and he had to pin his hopes on the source of international funds.

"We went all over the world to get help, we tried to convince investors to invest in us, and in the process of convincing investors to invest, we put together some of the big investors who did international business – especially in the Middle East, and Prince Alwaleed was one of the big investors. Collins said.

At this time, Jia Lei, who also proposed his willingness to invest, finally entered the eyes of Citibank's senior management who was in urgent need of funds!

Since Citibank is a pillar bank in country M, it is necessary to conduct serious investigation and research on which investors should intervene and which investors have stronger strength.

As expected, Citibank did a careful analysis and investigation of Alwaleed and Jia Lei, just as Prince Alwaleed did about them.

Jia Lei is the only one in this, who has done nothing stupidly! Jia Lei doesn't need to do any investigation, even if he doesn't know anything, he has a golden finger.

The experience before his rebirth told Jia Lei that Citibank would survive financial crises one after another like a tumbler! It grew stronger and stronger in the midst of stumbles and stumbles, and finally became one of the four major international investment banks.

**

"Since we had a previous relationship with Prince Alwaleed in banking, we were quite familiar with him and his family. We are also concerned about whether he has strong funds to support investment, but the reality is that we don't have to worry about whether he has strong funds - he is actually the largest private investor in our bank, and he plays a role that some investment regulators in country M cannot do. Collins later said in his memoirs.

Citibank's treasurer flew to Saudi Arabia to negotiate investments with Alwaleed – a mechanism developed when Citibank's banker, Cedric Grant, was in charge of the Middle East agency. After this, Collins was even more impressed by the Saudi royal family!

"The conversation with the prince was very simple and to the point, but to the point. After the conversation, it became completely clear that the prince was willing to be an active investor in the investment. Another thing that struck me about the prince during the conversation was that he was quite young – and certainly still is! He was young, but he was so thoughtful, and he was very serious in analyzing and investigating problems. He knows us very well, he understands what our strengths are, what our weaknesses are, what are the chances of success in development, etc. So I didn't have to waste any time explaining to him where we came from and why we came to him. He knows all this very well!" Chris said to Reid afterwards.

This time it was the prince's shrewd financial acumen that made the difference, and Prince Alwaleed was the most discerning of those investors of the day.

The most long-term vision is, of course, our reborn Jia Lei, Jia Lei must have told everyone at that time!

"Thirty years from now, Citibank will become one of the greatest banks in the world, and I believe that my decision will bring me more and greater glory!" Jia Lei said confidently.

****

Of course, these are all things for the future, and now Chris and Reed are still talking about the corrupt country!

Jia Lei just got off the plane with someone!

And Prince Alwaleed, who was later known as the god of the Middle East, was one of the countless princes in the Arab world.

The two geniuses who became famous in the future and had countless net worth were just ordinary rich people in their own country!

Prince Alwaleed and Jia Lei made the same choice at this moment!

They have successfully stepped into the international financial world with the influence of Citibank!