1991 may be the best and last window for Li Xuan to enter Wall Street, and the next such good opportunity is likely to wait until the subprime mortgage crisis twenty years later.

The U.S. economy is now in recession, and if we look at it from the perspective of history, it will only be a short-lived and mild recession. The U.S. economy will soon come out of the doldrums and usher in another decade of sustained prosperity.

But if you're in the middle of it, it's not that easy. In the 80s, leveraged buyouts were rampant in the United States, and junk bonds were widely sought after. This has a lot to do with Reagan's massive tax cuts and expansionary fiscal policy, which led to abundant liquidity in the capital market.

And when the economy is in a downturn, this high-risk and high-return capital operation model will immediately become a landmine that can break people's bones, and the first one to hit the trick is Dechong Securities (Drexel Burnham Lambert)!

Dechong Securities, Wall Street's largest junk bond investment bank, was once the fifth-largest investment bank in the United States, but it declared bankruptcy in February last year. Another prominent Wall Street investment bank, First Boston, was also trapped in a bridge loan of hundreds of millions of dollars for a leveraged buyout, and ended up in the arms of Credit Suisse, Switzerland's second-largest commercial bank.

In fact, according to the Glass-Steagall Act enacted in 1933 in the United States, investment banks cannot be acquired by commercial banks. But in order to avoid the bankruptcy of First Boston, which could lead to more turmoil in the US financial markets, the Fed turned a blind eye to the illegal acquisition.

The turmoil on Wall Street doesn't stop there, as the 160-year-old investment bank Dillon Read was recently acquired by Baring Bank, a well-known British investment bank, for a bargain of $122 million. Before the seventies, the company was in the first echelon of Wall Street investment banks, but in the last decade or so, it has weakened more severely.

Speaking of which, the Bush administration can also have a lot to do with this company, and the current secretary of the US Treasury Nicholas Brady is the former chairman of Dulwich Investment Bank. The Deputy Minister of Finance, Mr. Jerome Powell, is also from Dulwich. He joined the Bush administration immediately after resigning from his position as vice president of Dulwich College last year.

If Li Xuan is reborn a few years later, he may still have a slight impression of this name, because after being elected president of the United States, he was appointed as the new chairman of the Federal Reserve.

Whether the Democrats come to power or the Republicans are in power, key positions such as Treasury Secretary and Federal Reserve Chairman will always be in the pocket of Wall Street. So it's not an empty phrase to say that Wall Street is the real controller of the U.S. economy!

The recession that the United States is facing has not only detonated the junk bond market, but also caused the collapse of the real estate industry in the United States. As a result, the bad debt rate, which is all invested in real estate credit, including housing loans, has soared, which has directly led to the large-scale bankruptcy of the small and medium-sized banking industry in the United States in recent years. Even the big banks in the forefront have seen a sharp decline in their operating performance, and they have chosen to merge with each other to join the group for warmth.

At the same time as Jiahua Bank's acquisition of Bowery Bank of New York, Bank of America, the second largest bank in the United States, and Pacific Bank, the fifth largest bank in the United States, completed the merger. After the restructuring of the two California-based banks, although they did not overtake Citibank, which ranks first, in terms of total assets, the two sides are extremely close in size.

At the same time, the fifth-largest bank in the United States and the eighth-largest Chinese Bank in the United States also merged in a flash of light, and the merged new American Chinese Bank jumped to the third largest bank in the United States. Chase Bank and JP Morgan Bank, which were previously ranked third and fourth, dropped one place respectively to become the fourth and fifth largest banks in the United States.

If you have read "Currency Wars", you must be very familiar with the five banks except Bank of America and Pacific Bank. According to the description, five New York-based banks, Citigroup, Meihua, Hanhua, Chase and Morgan, control more than 50% of the shares of the Federal Reserve's Bank of New York.

The Bank of New York is the largest of the Fed's 12 branches, controlling almost all of the Fed's inner workings. It is through the privately owned Federal Reserve that these big banks take complete control of the entire US economy.

Regardless of the credibility of the book's contents, there is no doubt that these big banks have profoundly influenced the financial policymaking of the U.S. government and Congress.

For example, the current Fed chairman, Alan Greenspan, is the first chairman in history who was not born from within the Fed. But if you look at his resume, he is not only the owner of a Wall Street investment consulting firm for a long time, but also a director of JPMorgan Bank, and he is still inseparable from the shadow of Wall Street.

Li Xuan wants to successfully acquire its investment banking arm, Hilson-Lehman Brothers, from Amex, in addition to getting the U.S. government and the U.S. Congress, the most important thing is to get Wall Street.

First Boston, one of Wall Street's leading investment banks, has just been acquired by Credit Suisse and is in the midst of a turmoil of consolidation and layoffs. Another Salomon Brothers, on the other hand, is under investigation by the U.S. government for submitting false offers for Treasury bonds, and it has no time to worry about anything else.

The remaining Goldman Sachs, Morgan Stanley and Merrill Lynch are the M&A advisers for Li Xuan and Amex Group. Li Xuan's offer to Amex was as high as $3.5 billion, and operating such a huge deal could make these companies easily earn hundreds of millions of dollars.

In the face of such huge interests, they don't mind that Li Xuan will become their competitor in the future by acquiring Hilson-Lehman Brothers.

In addition to getting these investment banks, Li Xuan also offered a lot of money for several major commercial banks in the United States! In order to smoothly acquire Hilson-Lehman Brothers from Amex, Li Xuan decided to raise $5.5 billion.

In addition to the 500 million US dollars of credit provided by Jiahua Bank, the remaining 5 billion will be all loans to the five major banks in the United States. Citibank provided $2 billion, Bank of America, Bank of America, Chase Bank, and JPMorgan Bank each provided $1 billion.

Li Xuan will soon let Oriental Games go public in the United States, and by reducing some of its shares as new shares required for listing and issuance, he will be able to raise enough funds to repay the loan. Therefore, Li Xuan's loan secured by the shares of Oriental Game Company is a good deal with very low risk for these American banks!

Getting Wall Street done means that the Fed won't get in the way of its review of the acquisition. As one of Bush Sr.'s biggest financiers, Li Xuan will naturally get the green light all the way to the government, but the most difficult thing is the US Congress, which is in the hands of the Democratic Party.

Fortunately, Li Xuan has spent a lot of money on Democratic congressmen over the years, and he has many more friends on Capitol Hill in Washington than when he bought RCA. What's more, apart from his own efforts, there is no reason why acquisition consultants like Goldman Sachs should not help.

Goldman Sachs Chairman Robert Rubin has a lot of connections in the Democratic Party, and Goldman Sachs wants to become the lead underwriter of the next IPO of Oriental Game Company, and must show his value to Li Xuan!