"Are you saying that in the end, Greenspan stepped in and persuaded fifteen financial institutions to invest $3.775 billion to buy 90 percent of LTCM's shares?" Zhang Chen took off the sweaty hand cloth, threw it to Thomas, picked up Gatorade on the chair, and poured half a bottle of it.

Immersed in the excitement of being able to participate in such a top-level conference, he never dreamed that he would one day be able to have a meeting with people of Greenspan, Buffett, Kemansky and other people, until Zhang Chen asked a second time, and then woke up like a dream:" Ah, yes, that's what it turned out to be, after Merrywether rejected our offer, Greenspan announced an hour-long adjournment, and it wasn't until six o'clock in the afternoon that the meeting restarted, AIG and Goldman Sachs came up with the current plan, oh, and one more thing in between, Bear Stearns' James Kane didn't agree to fund the bailout of LTCM, and Peter Fisher, the second-in-command of the Federal Reserve Bank of New York, asked me if Cowes could take Bear Stearns' share and fund the rescue of LTCM. I told him that we were only interested in the full LTCM and did not want to share the interest in the LTCM with anyone, and that Cowyce was willing to accept a higher bid if possible, but did not have the support of the Fed. ”

Zhang Chen smacked his lips regretfully, but he admired Merry Weatherer in his heart, worthy of being a financial prodigy, even if the general trend of LTCM has gone, he can still maintain extreme calmness in this adversity, grasp the psychology of the Federal Reserve's eagerness to reduce financial risks, and actually really sold the worthless LTCM equity in his hand for nearly four billion US dollars.

Cowyce's offer was not too bad, with $175 million to buy all of LTCM's shares and $3.5 billion to inject into LTCM to quell the risk of a possible sell-off. There are very few institutions in the world that can do such a huge capital expenditure.

For Merry Weather and the rest of LTCM's partners, the plan was rotten. You know, a month ago, LTCM was valued at more than $16 billion, but now it can only be sold at one percent.

LTCM has 16 partners, and Merrywether owns about 3 percent of the shares, and it is difficult for most people to accept that the shares, which were originally worth $500 million, can now be sold for only 5 million.

This is the way things are in the world, no matter how difficult it is to accept it, for most people, they will neither resist, nor have the ability and capital to resist, so they have to accept it.

But Merry Weatherer is different, he has both the ability to resist and the capital to resist.

What's more, Merweser is a natural gambler, and it is worth the gamble that the Fed will not sit idly by and let LTCM go bankrupt and trigger a financial crisis.

He won the bet.

The Fed and the financial predators agreed to his offer.

Regardless of his character, Meriweather's courage and courage are not comparable to ordinary people.

Henry Paulson, William Harrison, George Soros, Warren Buffett, David Comansky, Richard Fulder, Sandywell, Reidario。。。。。。 The participants at the meeting, choose any one, are all figures who can stomp and shake in the international financial market.

In front of so many big names, Meryweather still behaved as arrogantly as he had been twelve years earlier when he played the game of "Liar's Poker" with his immediate boss, John Guflon, president of Salomon Brothers.

Twelve years ago, John Goodwillen, the king of Wall Street at the time, walked up to the company's star trader, Merry Weather, and arrogantly exclaimed: "A million dollars, no remorse." And Merry Weatherer did not show weakness, "Ten million dollars, no remorse." ”

Belankefen's excitement was a little suppressed, "Boss, LTCM rejected our acquisition request, and I think that's actually a good thing. I don't think LTCM still has any value as an investment, and LTCM is either facing a constant stream of margin reminders or needs more collateral for the loan. What's more, the market is so fragile that no one is not afraid that LTCM's debt defaults will have a knock-on effect, forcing securities firms to sell some of their positions in LTCM at low prices. Such a sell-off would cause serious losses to trading desks that have similar bets to LTCM. ”

Zhang Chen smiled slightly, of course he knew what Bellankefen said, but if he could acquire LTCM at a low price, this investment would not be as unbearable as he imagined.

Long-Term Capital Management has been Wall Street's most aggressive hedge fund in the past two years, with an average annual return of more than 40% over the past three years, which is far higher than Berkshire Hathaway or Icahn Asset Management, and higher than Soros's Quantum Fund and Julian Robertson's Tiger Fund.

Capital is profit-seeking, think about it, the Ponzi scheme with obvious fraudulent nature such as Yili God promises a return rate of only about 30 percent, which has already attracted countless bold and ignorant fools and fools to send money one after another, not to mention that this is a real rate of return of 40 percent.

The fact that the Cowyce Fund was able to obtain a higher rate of return stemmed from Zhang Chen's foresight, but it is impossible for a long-term capital management company to have a reborn, so in the relatively stable stage of the market, LTCM can obtain such a high rate of return, which shows that their investment model and trading strategy have far surpassed these international financial predators.

If it weren't for the once-in-a-century black swan event of Rakshasa debt default, Long-Term Capital Management would not have lost so badly.

You know, historically, long-term capital management companies are still bankrupt two years later, but they are profitable that year!

And a profit of $400 million!

But obviously, the financial predators who have injected capital into the long-term capital management company do not want the company that broke the rules of the game on Wall Street to continue to exist, so once the crisis is resolved, they have cashed out one after another, forcing the long-term capital management company to go bankrupt and liquidate.

So, it's not a money-losing business.

However, these are not enough for Zhang Chen to spend such a large price to acquire LTCM, and he certainly has more important reasons for him to be willing to bear hundreds of millions of dollars in losses in the short term to do this.

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London, on the banks of the River Thames, public telephone booths.

"Well, it's a pity, but it's to be expected. As we have discussed before, the Fed will not want this nuclear bomb to be in the hands of someone else, and the 15 major financial consortia will reluctantly take over, which is the best outcome for the Fed. ”

A handsome man holds the phone, looks up from time to time, and every two minutes, changes a phone booth. If there is a second person in the phone booth, you will find that although the content of his call is continuous, the number dialed is different each time.

"It's okay, I see, how about the other thing I asked you for?"

"Haha, great, the weather in London is so bad, I miss the summer in Moscow. ”

Tomorrow and the day after tomorrow, I will make up for the double change, and the work has changed in the past few days, and I am almost tired.

(End of chapter)