That day.

Tang Bao and East West Bank are once again making headlines in the U.S. news, with the same sensational effect, but a very negative effect.

East West Bank did not pay insurance premiums to the Federal Deposit Insurance Corporation for the deposits it absorbed.

Newspapers, magazines, radio, television, etc., were spreading the news like crazy, spreading all over the United States and even around the world almost instantly.

Wow.

There was an uproar on all sides.

"What, East West Bank didn't pay deposit insurance premiums to the Federal Deposit Insurance Corporation! Oh God, I have $160,000 in my account at East West Bank, that's all my savings...... No, I can't put my money in East West Bank anymore, I have to transfer it all! "A retired teacher somewhere in California watched the news, was terrified, and then rushed out the door like crazy.

"Oh. God, what did I do. Damn East West Bank, damn Chinese......"

"Honey, we have to get all the money out of our deposit at East West Bank, really, I'm serious." Thomson tried to persuade his wife.

"Fortunately, I didn't deposit money in East West Bank, so I knew that Chinese banks are not trustworthy!"

……

Panic, schadenfreude, onlookers, there are all there.

And at this time.

Everywhere East West Bank was located, there were large crowds of people eager to withdraw their deposits. And this flow of people is gathering more and more......

A run is happening.

No one expected that the US banking crisis would erupt, and the first run would be on the well-performing East West Bank.

"Boss, the situation is very bad, and there is a trend of running on branches and business outlets all over the country. If it can't be contained, I'm afraid that the circulating funds in the bank will be quickly exhausted! After Veneberg answered the phone, he hurriedly reported to Tang Bao about East West Bank.

This.

The overall commander of the crisis is Wieneberg. It is up to him to dispatch the whole process. As for Robert, the president of East West Bank, he was left idle by Tang Bao.

The culprit of the East West Bank run crisis was Robert, and Tang Bao could not possibly act as if nothing had happened.

Well.

Tang Bao nodded solemnly.

East West Bank's failure to pay deposit insurance premiums to the Federal Deposit Insurance Corporation is the same as the loss of government guarantees by Chinese banks.

Imagine if one day, China. The government announced that it would no longer guarantee the full amount of bank deposits, the banks went bankrupt and depositors could not get their money back. The panic it caused was only excessive. Instead of putting their money in the bank with peace of mind, savers will queue up overnight to get their money back.

At this time.

That's what happened to East West Bank. Depositors learned that East West Bank did not pay deposit insurance, meaning that their deposits would not be paid out in the event of an accident. Therefore, it is normal for depositors everywhere to be in a hurry to withdraw their deposits.

"I've taken a series of measures, but the effect has been very small, with panic among depositors and someone fanning the flames. Depositors simply don't trust East West Bank's promises...... "Winnieburg recounts the situation with great resignation.

Yes.

At this time, even if East West Bank had 10,000 mouths, it was not paying insurance premiums for the deposits it absorbed. is an indisputable fact. As long as this is clear, depositors will not feel comfortable keeping their money in their accounts at East West Bank.

Call.

Tang Bao took a deep breath, he really wanted to slap Robert to death, it was really more than enough to succeed.

"The root cause of the crisis is that East West Bank's deposits are not insured. There is no guarantee of safety. In this case, it is necessary to pay insurance to the Federal Deposit Insurance Corporation as soon as possible, which is the fastest and most thorough solution. Calm down a little, Tang Bao said.

"Yes. To ......" Robert's eyes lit up and he hurriedly agreed.

But.

Seeing Tang Bao's eyes glancing over, he quickly lowered his head again. He knew he was in trouble.

"Boss. I know this is the best solution. And I got in touch with the Federal Deposit Insurance Corporation......"

"Oh?"

Tang Bao looked at Winnieburg in surprise, after the crisis broke out, Winnieburg almost stayed in the hotel, and commanded remotely through the phone, when to contact the Federal Deposit Insurance Corporation, Tang Bao didn't find out.

"But the future of the banking industry is uncertain right now, and the Federal Deposit Insurance Corporation will not easily accept our insurance request." Winnieberg said helplessly.

"Refused?" Tang Bao asked coldly.

"There is no refusal, but it will drag on for a while." Winnieburg said with a wry smile. "Boss, there are only a few reasons for the Federal Deposit Insurance Corporation to want to delay. First, when the banking crisis broke out, East West Bank was not small, and they were worried that accepting our insurance application at this moment might face huge losses. Second, the Federal Deposit Insurance Corporation does need to conduct a risk assessment of East West Bank's capital and then determine the cost of insurance. Third, it may be that the Federal Deposit Insurance Corporation of the United States has been influenced by some people to deliberately delay time. ”

Hear out.

Tang Bao sighed helplessly: "I hope it won't be the third guess!" ”

If the Federal Deposit Insurance Corporation were to be commissioned, there would be no time for the delay, and they would have come up with all sorts of reasons.

Although the Federal Deposit Insurance Corporation operates independently, it is no different from the U.S. government, and it is only a trivial matter for it to bring down a bank. All they had to do was find some reason to keep delaying East West Bank's enrollment, and East West Bank would be crushed by the run storm.

And......

Not long ago, members of Congress called for the cancellation of East West Bank's qualifications, and the U.S. government could not cancel it openly, so what about secretly erasing it?

"Boss, I'm afraid that it will be difficult to complete the matter of paying insurance premiums to the Federal Deposit Insurance Corporation of the United States, and before that, we have to take other measures. Fortunately, East West Bank has not yet been listed, otherwise the pressure would have been even greater. Vieneberg reminded.

Tang Bao guessed that the Americans might take the opportunity to wipe out East West Bank, and he was a little irritable, but he did not fall into a panic.

But.

After all, Tang Bao has never run a bank, and his understanding of the inner door is limited. It's really hard for him to figure out a workable solution. The only thing he could think of was to prepare enough money to deal with the storm of the run on East West Bank. But he also knows that in this case, it is not enough to rely on adequate funding.

"Winnieberg, tell me what you think." Tang Bao knew that since Winnieburg proposed it, he must have his own ideas.

"First, to raise more money once East West Bank is unable to cash in on the deposit. That's it. ”

"I understand that there are about a billion dollars left in the bank, and I have ordered the following to try to delay the rate of loss of funds by all reasonable means, but in an ideal case, it will only last five days. So we need to raise money as soon as possible, recover loans, borrowings, etc., anyway, to repatriate funds. Vieniburg explained his thoughts in detail.

The tone paused.

Vinnieburg added: "But the effect should be limited, for now. Many banks are repatriating funds, and everyone is short of money. Boss, do you think you can get Phoenix Investment Group to support a sum of money? ”

"Hey. Winnieberg, that's all it takes. The last sentence is your real purpose! Tang Bao couldn't help but smile and said.

Winnieberg smiled awkwardly.

Phoenix Investment Group is known for its abundant funds, and at this time, East West Bank was in dire need of funds, so he naturally hit the idea on the head of Phoenix Investment Group.

"You don't have to worry about money for the time being. I can still come up with thirty-five billion dollars! Tang Bao said solemnly, this is his entire net worth. The original funds of nearly 10 billion dollars were spent in various ways. There are so many left, and I wanted to use it to buy FirstWisconsin International Bank, but now it has become the lifesaver money of East West Bank.

Three and a half billion dollars.

Winnieburg was taken aback, and then there was a great surprise, with the money as a buffer, it would be easier to deal with the storm of depositors' runs.

In addition, some of the banks acquired by East West Bank have temporarily stopped merging and integrating. There are big or small problems in these banks, and the integration will further drag down East West Bank, which should not be difficult to deal with in normal times, but at this moment is a crisis for East West Bank, and the funds have to be used in key places, and there is no extra capital to save these assets. When necessary, boss, you have to be prepared to give up. ”

Well.

Tang Bao nodded lightly, now. None of them have been integrated yet, but they are very easy to distinguish. If it is further integrated, it will all be mixed together, which will undoubtedly increase the burden on East West Bank.

Compared with other banks that East West Bank acquired, East West Bank is naturally the foundation and needs to be fully protected. If the force is not timely, giving up secondary assets is also a helpless choice.

"Thirdly, we need to be honest with the public about the reasons why East West Bank is not paying deposit insurance, and someone has to step up......"

Vinnieberg's words stopped halfway through.

But.

Don Boo, Robert, and Nick all know what Winnieberg is going to say.

"Boss, the fatal loophole that East West Bank will be caught by its opponents is a mistake I made, an unforgivable mistake. I will stand up and explain it to the public and am willing to take full responsibility for this matter. Also, please ask my boss to approve my resignation! Robert stood up and said.

"Okay."

After a moment of silence, Tang Bao nodded in agreement. It's not that he wants to cross the river and tear down the bridge, Robert's mistake is too serious, and Tang Bao has no reason to forgive.

"Veniburg, you don't have to feel guilty, it's my responsibility." Robert smiled and looked at Winnieberg.

on this.

Winnieberg smiled silently, he didn't covet the position of president of East West Bank and wanted to take the opportunity to attack Robert, he did it with a clear conscience.

"Winnieberg, you go on!" Tang Bao urged.

"Hmm. Boss, the last point, it's up to you. Vinnieberg pointed at Tang Bao and said with a smile.

"Rely on me?"

Tang Bao was a little surprised. He asked himself that he also knew a little about the bank's operations, and that there was not much to do but provide as much money as possible.

"Yes, it's up to you. The current crisis at East West Bank is a crisis of credibility and trust. We need to find enough supporters. Especially influential supporters. This has a very big effect on stabilizing East West Bank. Vienburg said.

"Hmm."

Tang Bao also deeply agrees that if there is a group of influential people who stand up to support East West Bank, there must be many benefits.

"So, boss, I hope you can use the resources of Phoenix Investment Group to further support East West Bank. As far as I know, some of the investors in the Phoenix Vanguard Fund have a lot of backgrounds, and if you can ask the boss to come forward, it is also a lot of strength. These people have a lot of influence on the U.S. government......"

"Boss. The current crisis at East West Bank has not only its own loopholes, but also external causes, and it is also crucial for government lobbying. ”

Tang Bao couldn't help but nodded. It is not impossible for the U.S. government to use this crisis to completely wipe out East West Bank.

Lobbying is really important.

"Whew, Winnieberg, what do you say about Phoenix Investment Group's stake in East West Bank at this time?" After being silent for a long time, Tang Bao suddenly asked. (To be continued......)