Detroit, Michigan, USA, UAW's RMBT Trust, Office of the President

"MR. Belfort, I have to kindly remind you that our securities lending period is actually only 11 months, before this year's GM's dividend record date, all shares will be returned to RMBT's securities account at maturity, last year's GM dividend was $5 per share, almost 10% dividend yield, this year's performance has improved significantly, the year-end dividend payment is expected to only increase and not decrease, if RMBT simply holds 18.3 million shares of GM stock, At the end of the year, the income will be 9% less than that of the securities lending to us, I believe anyone can calculate this account, and the board of directors of your fund will not sit idly by and miss the opportunity to make money in drought and flood to ensure income, right? ”

Jiang Yelin's words hit the key point of Belfort, you know, the RMBT trust fund is the third largest shareholder of General Motors, and it is true that it holds 4.95% of General Motors shares, the problem is that the remaining shareholders ranked fourth to tenth among the top ten shareholders almost all hold 4-4.95% of the shares of General Motors, in other words, if RMBT pushes back and gives up this good business, other shareholders may not be as stupid as RMBT, I know I can make twice as much money, but I can't sit idly by? Just for the sake of the moral so-called shareholder, can't borrow securities to help the short smash their own plates? You don't borrow from yourself, other shareholders or even individual investors are willing to borrow and borrow securities to earn more interest on this large amount of securities borrowing!

Having said that, how can the board of directors of RMBT be convinced that the lending of securities to Merrill Lynch will not harm the ultimate interests of RMBT? Based on yesterday's Friday's closing price of $56.125 per share, the market value of 18.3 million shares of General Motors is $1,027,080,000...... if the securities lending period expires at the end of the year, and the market value of GM shares that return to our accounts is not less than the current market value

"Mr. Belfort, I think you should understand that insider trading and stock price manipulation are completely impossible things for a large company like us Merrill Lynch, and I am talking to you now about Merrill Lynch's 18.3 million shares of General Motors from RMBT, not about a $1,027.08 million financing transaction, in the process of securities lending, Merrill Lynch has already borne the huge risk caused by the rise in stock prices, can we wait until the end of the year, because the stock price of General Motors has doubled, can we ask for only 1,027.08 million to buy only half of the stock to you?"

Jiang Yelin's words are right, in the U.S. stock market, big blue chips are the preferred target of securities lending and borrowing by brokers, the reason is that institutions and funds holding large blue chip shares are generally long-term investments, not counting on the difference in stock prices and relying on annual dividends to increase income, and the brokerages themselves will be happy to hold large blue chips in stock lending and securities lending to small and medium-sized investors to earn more money in securities lending and financing income, and junk stocks with poor liquidity and poor performance have no securities lending market at all, and no one is willing to hold or lend these stocks lightly.

"Mr.Ye, I admit that what you said is not unreasonable, but as the third largest shareholder of General Motors, I am afraid that I can't impress my board of directors with only 9% of the securities lending income, and personally, of course, I still have a lot of confidence in you and the G3 Fund, but I have an immature idea, I don't know if I should mention it? I'm afraid that when the time comes, you will go to insider trading again, then I can't afford this big hat! "Belfort played Tai Chi for a long time, went around in circles for a long time, and finally it was time to play the cards.

"No problem, but it's time for dinner now, why don't I be the east, how about we have a meal together and talk while eating?" Jiang Yelin's eyes rolled, and he instinctively put forward his own proposal, he is rarely willing to talk about some very sensitive topics in other people's territory, and he avoids the US Securities and Exchange Commission, and it is necessary to have a heart of harming people, and it is necessary to have a heart of defense against people, otherwise he would not have chosen a temporary suite in the hotel in the negotiation with General Motors President Smith and met frankly.

"Hahaha, this is Detroit, not Manhattan, of course I'm the East, do Mr.Ye have any preferences for Detroit's restaurants and tastes?" Belfort is obviously not a fuel-efficient lamp, knowing that the other party is unwilling to talk about some sensitive topics that are likely to bring trouble in the office, so he stood up with the boat, and generously let Jiang Yelin choose the dining environment, Jiang Yelin naturally did not be polite to him, this time he chose the revolving restaurant on the top floor of the Hilton Hotel, but both sides were not thinking about eating, so the buffet of 98 US dollars per capita was just right.

"Mr. Belfort, I wonder why you chose to take charge of a trust fund like RMBT, you must know that the trust fund is not a hedge fund, the investment is all flat and stable, not seeking merit but seeking no fault, as long as the annual income outperforms the yield of the 10-year Treasury bond in the United States, everything is fine, with what I know of your experience on Wall Street a few years ago, it is hard to imagine that you chose to retreat bravely at such ......a young age" Jiang Yelin ate faster than the other party, and wiped his mouth with a napkin at this time, Picking up a glass of sherry is a gargle, and asking.

"This, you may also know, at that time I made some money, a little bit I don't know the sky is high, the US Securities and Exchange Commission is targeted, the ex-wife at home is divorced, this divorce lawsuit is a dozen, not to mention the lawyer's fees, just a large amount of alimony and property division can make me back to the original shape, and the SEC tried to accuse my company of defrauding customers, and in frustration, of course I ...... The rapids retreated, didn't they? In this market, there is no end to money, but why risk going to jail...... In short, don......'t mention the past," Belfort looked a little depressed.

"Hmm...... Looking forward is the key, after all, you are only 31 years old, and you have just graduated and stepped into the workplace after changing other nerds to study for a doctorate or something, and the chairman and president of RMBT also belongs to a high-salary collar family, with an annual salary of 300,000 plus an annual profit dividend of 1%, which is not something that anyone can earn! Jiang Yelin smiled and comforted Belfort, who was not a few years older than himself, in fact, a few years ago, the young wolf of Wall Street was a man of the hour, at most, the equity financing project of a shoe company made his private equity fund earn 22 million US dollars, who would have thought that now this guy looks like a little old man listless.

"Uh, don't talk about this, Mr.Ye, Merrill Lynch wants to borrow securities from RMBT, I ask for a 9.5% interest rate, and the time is still from now to the end of the year, because the end of December is the equity registration date for dividend distribution, so, you will suffer a small loss at this price, I understand it, otherwise I can't explain it to Goldman Sachs and Morgan Stanley, I'm not afraid to sue you, yesterday Goldman Sachs and Morgan Stanley both sent people to talk about the matter of General Motors stocks, and I blocked back......"

Belfort raised the rate of securities lending by 0.5 percentage points, of course, it also gave a favor, yesterday Goldman Sachs came to borrow and lend this guy really didn't will, Goldman Sachs opened the rate is only 1 percentage point higher than the 10-year Treasury bond in the United States, this kind of petty bid naturally can't impress Belfort, 0.5 percentage points means more than $5 million in additional interest, this favor, the selling price is not low, Jiang Yelin nodded with a smile when he heard this, waiting for the other party to continue.

"Secondly, in order to hedge the risk of the decline in the stock price of General Motors, RMBT wants to subscribe to Merrill Lynch's G3 fund, I know that the G3 fund is Merrill Lynch's internal fund, but RMBT itself has a securities account with Merrill Lynch, so this is not a problem, the key to the problem is that your G3 fund limits the upper limit of each institutional investor to 3 million shares. This is a drop in the bucket for RMBT, which has a net worth of up to 2.5 billion, and it simply cannot meet our requirements for hedging risks......"

Belfort's voice is very low, but in fact, it is extremely high-profile, in terms of the net value announced by Merrill Lynch G3 Fund after yesterday's closing, the entire G3 fund 250 million shares and 450 million net assets look dazzling, I believe that this weekend's market subscription funds will flock in, but the institutional subscription ceiling of only 3 million shares is indeed a bit too restrictive! Belfort intends to subscribe to at least 100 million shares of the G3 fund this weekend! If you want to hedge the risk, how can 3 million investments of up to $4.8 million be enough to hedge risks?!

"This, is indeed a bit troublesome, G3 fund because it is an aggressive style of aggressive stock fund, in order to avoid accidental losses to the majority of investors, so the qualification review of customers is more strict, for individual investors, the G3 fund subscription threshold has been raised from 200,000 to 300,000 US dollars, for institutional investors, the original single subscription limit is 3 million, eggs should not be put in a basket, right? Mr. Belfort had better think twice, if you raise the subscription limit for RMBT alone, I'm afraid I am not very easy to explain on the company's side, G3 funds have always put the control of risk in the first place, we do not build yì customers to invest all or most of their assets in one product, that is too risky! ”

Jiang Yelin's words are half-true, in fact, for Wall Street, Especially for Merrill Lynch Securities, such a No.1 brokerage, there is not enough reason to limit the upper limit of institutional customers to subscribe to the share of internal funds, G3 fund adopts the hunger marketing method advocated by Jiang Yelin, on the one hand, with the increasing threshold of the G3 fund and other funds customer qualifications and gaps, on the other hand, it is also to retain a little development vitality for other funds of Merrill Lynch, otherwise with the G3 fund's ability to absorb money and make money, it will not be long before no one is willing to subscribe to other Merrill Lynch fund products.