The quiet campus life did not last long, and on the weekend, Li Xu left Oakland High School and returned to his villa in Marin County. Pen, fun, pavilion www. biquge。 info

"I must say, II, you always surprise me. Sitting on the high-backed chair in the study, my father sighed while looking at the materials, "Mortgage securitization, as well as compound mortgage securitization, is really a genius idea." ”

"Thank you. Li Xu raised his eyebrows quietly.

It's just CDOs and compound CDOs, so there's no need to make such a fuss, right? Although CDO is the main source of subprime mortgages, without the help of CDS, it will not poke such a big basket out.

CDOs don't say much, just need to know that they are closely related to mortgage securitization, and there is no subprime mortgage without CDOs.

CDS, on the other hand, is called a credit default swap, which simply means that you want to find a bank loan to buy a house or buy another company, but the risk is too large, and the bank is worried that it will not be able to recover the investment. So you go to an insurance company to guarantee yourself, pay a certain percentage of the insurance premium every year, and if you can't pay it back, the insurance company will support the compensation.

That way, the risk to the bank is reduced, you get the loan, the insurance company gets a premium, and everyone is happy and makes a profit out of thin air, which is tailor-made for Wall Street!

To be sure, the CDS design is actually quite good, and it will be of great help in facilitating the flow of capital.

However, any good beginning does not necessarily lead to a good outcome, and it is as impossible to prevent capital from crossing the red line to grab profits as it is to prevent bureaucrats from grabbing political achievements in order to climb up.

"So, Dad, please tell me, how are you, Morgan Stanley, thinking about it?" Li Xu asked at this time.

"There is a consensus among some people about junk bonds, but ...... The old guys are still in the way. The father said this with a helpless expression.

"Including Baldwin?" Li Xu continued to raise his eyebrows.

"Strictly speaking, Robert is neutral, he wants to be left and right," said Edward Sr. shrugged, "but Robert has indeed lost his aggressiveness. ”

"So ......" Li Xu lengthened his voice with an inquiring tone.

"Don't worry, II, it will take a little time," my father smiled, "I have already thought of a solution after my grandfather called me, and I think my grandfather has thought of it too." ”

"Oh, then have you written the plan in the palm of your hand, and then spread it out together to see if you have a heart?" Li Xu immediately asked.

"Are you talking about any oriental allusions?" the father sighed as he looked at him.

"Okay, go ahead. Li Xu made a gesture of please.

"I guess grandpa was talking to you about this, and he certainly didn't mention a single person. Old Edward smiled.

"Henry Morgan?" Li Xu immediately reacted, he had lived in this family for 18 years, and he knew a little about certain things.

Jack Morgan, also known as Morgan Jr., officially had two children, Junius Spencer Morgan III, born in 1892 and the eponymous name of his grandfather Junius, and Henry Sturgis Morgan, born in 1900.

Yes, and Li Xu's grandfather, Andrew Charles Lee or Andrew Charles Morgan, was born in the same year, but two weeks later than his grandfather.

Junius Morgan didn't say much about his grandfather's illegitimate son, but Henry Morgan hated it very much, and he had all kinds of-for-tat confrontations since he was a child.

It seems to be defending the honor of the family, but Li Xu feels that being born two weeks later than his grandfather is the main reason why Henry Morgan hates his grandfather.

If it weren't for the fact that a few years before Morgan Jr. died, he asked his youngest son to give his illegitimate son a Stanley partner position, and his grandfather would have been busy if he wanted to enter Stanley.

Well, grandpa said so, but in the opinion of Li Xu, who is standing in the lower reaches of history, if it is really Little Morgan's request, it is mostly to insure his family.

Kingship does not last forever, or rather, history always spirals upward, past its peaks, and sooner or later it will go downhill. Whether he can go slower, whether he can rebound as soon as he stops the decline, and then re-ascend to the peak, is a great test for the helmsman.

Henry Morgan obviously can't bear this responsibility, although it is inevitable that this statement from the mouth of the grandfather is suspected of exaggeration, but judging from what he did, the exaggeration is not very much.

As a simple example, last year, IBM planned to issue a $1 billion industrial bond, and my grandfather, as a member of IBM's board of directors, won the opportunity for Morgan Stanley to underwrite it.

But because of the economic downturn, IBM wants to reduce the risk and wants to have Morgan Stanley and Salomon Brothers jointly underwrite. As a result, not only were the profits diluted, but the names of the Salomon brothers were listed after Morgan Stanley in the release book, and Henry Morgan seized on the latter to express strong opposition.

Although he was downgraded to a limited partner by the other partners as early as the beginning of the 70s because he rejected the business of the International Workers' Federation, he was a Morgan after all, and he still had a lot of say in Stanley.

Maybe it was against an old rival, or maybe it was to maintain Morgan's signboard -- when the Morgan family was calling for wind and rain in the U.S. financial market, Salomon Brothers was not even Mao Mao -- and Stanley also wanted to swallow the deal in its entirety, which eventually led to IBM canceling the deal and allowing Salomon Brothers to take the lead in uniting other securities firms, and Stanley's business was greatly affected.

In addition, Henry Morgan was not very concerned with the affairs of Da Mo, and he had an office in Da Mo, more out of family responsibility. And in 56 years, in order to make his eldest son Charles Morgan a partner, he even threatened Stanley to remove the name Morgan.

Eventually, the partners made a deal with Henry Morgan, but the seeds of discontent were planted, so when Henry Morgan wanted to make his second son, John Adams Morgan, a partner of Frank Morgan, he was unanimously opposed.

Not only that, but they also took advantage of the opportunity of another partner's son-in-law to make trouble in the company because he was drunk, and introduced the "anti-nepotism law". Grandpa also added fuel to the fire and said that if his son has the ability to succeed him as a partner, he will quit Stanley, and if his son is not capable, he will not let him be a partner.

Henry Morgan was so angry that he could only swallow the bitter pill, but ironically, Charles Morgan was not interested in finance at all, he preferred architecture, but he did not make it to Adams, who was very talented in this area, and is now the head of the financing department of Dominica Securities.

When Li Xu went to Morgan Stanley when he was 8 years old, he only entered the top floor, and saw a middle-aged man in a suit and leather shoes, squatting at the door with a knife and a screwdriver repairing the doorknob.

After knowing that he is Charles Morgan, the whole person is not good, are you especially a partner of Da Mo, are you especially a Morgan, are you here to repair the doorknob with a knife? This style of painting is too strange!

However, things in the world are sometimes so wrong, so Li Xu has it, if it is really little Morgan who asks for a place for his grandfather in Stanley, it must be the idea of placing an insurance for the family.

It's just that I don't know if he expected it, the grudge between Henry Morgan and his grandfather can reach the point where one person supports it, and the other person will oppose it.

Actually, Henry Morgan is also a gentleman, Li Xu has met him a few times, a very gentle old man, and after knowing his identity, he has not deliberately given any bad looks. Even, even in the face of his father, he only behaved coldly, and his father and Charles Morgan actually had a good conversation in private.

However, some things will never change, and it may be an exaggeration to say that a person supports one person to oppose it, but it has never been less than the point of finding leaks to attack each other, so as soon as his father mentioned Henry Morgan, Li Xu knew what he was planning.

"Do you want Henry to come out against Baldwin, or does Grandpa come out to support Baldwin, and then he jumps out against it?" Li Xu immediately asked, "If the former is the case, Henry has no reason to oppose Baldwin, and if the latter is the case, you will still be implicated, Dad." ”

"Neither. Old Edward shook his head and groaned for a moment before he met his inquiring gaze and said, "Well, first, there will be people who will jump out and question Robert's abilities, and then Father will privately show his support for Robert, and these words will spread quickly." ”

Li Xu's eyes lit up, and he had already grasped what old Edward meant, although his grandfather had left Morgan Stanley, and his partner was now his father, his influence was still there. Just like when Morgan Jr. was still around, Stanley would only listen to him, and Henry Morgan was largely just a decoration.

So, if someone in Da Morgan really jumped out to question Baldwin's ability, and the word of Grandpa privately supporting Baldwin spread, Henry Morgan would definitely make the opposite choice. After all, he is also considered to be of the older generation, and he is also one of the targets of the original "Gang of Six".

And then ......

"Then, muddy the waters, start a discussion internally, and add a fire underneath," the father continued, "and when there is a trend that everyone wants Robert to step down, I'll contact a few people, and if Robert does step down, the successor must be one of us!"

Li Xu couldn't help but raise his eyebrows: "Have you anyone chosen?"

Old Edward was obviously mistaken: "No, it's not me, it's Parker Gilbert!"

Sure enough, Li Xu clapped his hands in his heart, as a person who had read books related to Morgan Stanley in his previous life, he knew very well the weight of this name for Da Mo.

Harold Stanley's stepson, who is also Henry Morgan's godson, is also favored by Robert Baldwin, and has the means, strength and connections. In its original history, Baldwin was forced out of office in '83, but appointed Gilbert to take over, and Gilbert did a good job, reorganizing Da Morgan in 1986 to list on the New York Stock Exchange, and several times in the following decades to turn the tide and prevent Morgan Stanley's culture from being ruined by those who didn't understand it, at least that's what the book says.

Dad and Grandpa are really powerful, if this plan goes well, not only can they reform Stanley, but also take my father out of it, and win over a very important ally, bankers are really not ordinary people can do it.