World Financial Center, Manhattan, New York, USA, Merrill Lynch Headquarters GPC, President's Office

"Well, the two bosses, the good news is that as of the close just now, the net value of the G3 fund is 21692 US dollars, and the total assets of 350 million have reached 759.22 million US dollars, in addition, the scale of the G31 fund and the G32 fund is currently more than 100 million, with a net value of 1.2712 US dollars and 1.1728 US dollars respectively, and the total assets of the three funds have exceeded 1000000000 US dollars...... I'm afraid that the headquarters will have to find a way to adjust a little financing position, otherwise the financing amount will not be enough if the 1:1 financing leverage is ......" Jiang Yelin held a small book in his hand, but these points were all in his mind, this book and the pen in his hand were just to show respect for the boss and the boss.

"Not bad! That's good! Did you know that the roadshow for Saturn's IPO has ended? Did you know that tonight is the deadline for IPO subscriptions? Did you know that Merrill Lynch has not received even a single tender from an institution or fund to subscribe for a tender so far? Gordon-Gecker's tone was filled with irrepressible annoyance, he was optimistic about Django's ability and future, and did not mean that Merrill Lynch was still indifferent when it was about to become a laughing stock in the industry!

"Boss, to be honest, I have predicted that investors and institutions can not accept the issue price of Saturn Motors $3 per share, I remember that I had a clear explanation about the prospect of IPO issuance at the previous meeting, in fact, this week the industry about General Motors' cash flow shortage had to go through the Saturn Motors IPO and the rumors of recovering funds have not stopped, in order to control the potential risks caused by stock price fluctuations, Merrill Lynch can only short sell GM shares in front of others, Otherwise, it is tantamount to sitting back and watching other competitors take money out of our pockets and make us cheaper! ”

Jiang Yelin's words are no different from the previous rhetoric, Chambers Fit and Gordon Geiko are obviously calloused to his ears for this set of reasons for shorting arbitrage for the G3 fund, Chambers Fett is sitting on the side at this time and not gnawing, waiting to see his boss and his assistant fight to see who wins, now the situation is a little out of control, but the responsibility is not entirely on the central sales department and Fit himself, but on Gordon Gayco, as the president of GPC, how do you see Jiang Yelin in G3, The operation of the G31 and G32 funds and the underwriting of the Saturn Automobile IPO, in fact, the underwriting of the Saturn Automobile listing is the largest list of the central business department in the first quarter, which can only succeed and not fail, but now, Jiang Yelin used a high price in a weekend, and the top ten shareholders of General Motors have successively borrowed 18.3 million shares, 18 million shares and 15 million shares, and the period is 11 months until the end of the year!

Because the holders and institutions of the shares are only lending the shares they hold to Merrill Lynch in the form of securities lending, so the ownership has not really been transferred, so although Merrill Lynch Securities holds up to 51.3 million shares of General Motors in its securities lending account, it does not belong to the shareholders holding more than 5% of the shares, and does not belong to the stock holders who need to be publicly traded. The G31 and G32 funds almost monopolized the priority of the 51.3 million shares of GM.

In addition to those long-term strategic investors and the top ten shareholders, small and medium-sized institutional and individual investors have almost joined the ranks of selling the shares of the three major auto companies, for example, General Motors' average daily trading volume this week is as high as 25 million shares, Ford Motor is 18 million shares, and Chrysler Motor Company's stock has exceeded 10 million shares......

From this point of view, the blue-chip car short selling storm set off by G3, G31 and G32 funds has a positive side, especially for the three major shareholders of General Motors who lend securities to Merrill Lynch, the income from securities lending and the decline in the market value of General Motors stock confirm that signing a securities lending agreement with Merrill Lynch is an extremely wise choice, as for what will happen to the market value of General Motors when the shares are returned at maturity in 11 months, For these shareholders who have held GM shares for a long time, it is not the main problem, how much dividends can be paid by GM at the end of the year is the key, and now the Saturn listing can bring 2.7 billion cash equity gains to GM, which is definitely a positive factor for the year-end dividend.

The negative factor of the sharp decline in the stock prices of the three major automakers is naturally that the issue price-earnings ratio of Saturn Motors as high as 27 times looks a bit unattainable, although Jiang Yelin has been vaccinated in advance, but Chambers Fett and Gordon Geko know the truth that the height is unbearable, so they have always had hope that other investors and institutions will bid to subscribe for Saturn Motors' new shares, but this hope is becoming more and more slim as the bidding deadline approaches, in a black Friday like February, The gloomy face of the president of GPC is obviously not surprising.

"Don't talk to me about insider trading risks or anything like that, young man, if the Saturn Motors IPO plan messes up, I will definitely not show mercy!" Gordon-Gecke's threat is that you can also take this as a dissatisfaction and spur to Jiang Yelin, what Gordon-Gecko is most unhappy about is that not only Chambers Fit doesn't know the daily trading plan of the G3, G31 and G32 funds, but even in front of his own big boss, Jiang Yelin has almost always been untruthful......

"Boss, I think risk prevention for Merrill Lynch, for the center of the business department and the G3 series of funds are a first-class matter, G3 funds can not bear the risk of misleading investors in the operation of the stock price accusations and complaints, we only invest in the big blue chip sector, at the same time we are an aggressive and aggressive stock fund, our operation is not based on any inside information, all information is publicly collected from the market and our own unique analysis, we never want investors to predict tomorrow's stock price, At the same time, we never promise to make any judgment about the rise or fall of the stock price...... That's our style, BOSS, and I hope to gain the trust and support of you and Mr. Fitt as always! ”

"The problem is that as of 24 o'clock tonight, if the bid for Saturn's new shares is ZERO, Merrill Lynch will have to raise $2.7 billion to eat the 900 million new shares of Saturn Motors, which is a huge hole in GPC's cash flow, and you won't ask the company to issue junk bonds for the $2.7 billion, right?!" Gordon Geck cares not only about where the $2.7 billion comes from, but also about himself and the entire Merrill Lynch company being kept in the dark by Jiang Yelin, and I don't know where he wants to jump with the G3 fund and the Saturn IPO plan, and the $2.7 billion is the real money to be transferred from Merrill Lynch's account to General Motors!

"Boss, in fact, I didn't plan to let other investors and institutions get a piece of the Saturn Auto IPO from the beginning, of course, $3 a share looks expensive, otherwise how can I scare people away? But if the performance growth of Saturn Motors is indeed as stated in the analysis report of those senior researchers of Merrill Lynch Securities Research Institute, doubling in one year, not to mention that the stock price will become $12 per share in three years, it is still possible to achieve $9 per share, and the market value of Saturn Motors will even be close to the market value of the three major automakers! ”

Jiang Yelin's words made the office fall silent, Gordon Geco began to circle around his 1600-square-foot office with his hands behind his back, frowning and countless thoughts in his mind turned one after another, but Chambers Fit sighed and said to Jiang Yelin, "Django, in order to cooperate with the issuance and subscription of Saturn Motors, of course the guys from the Merrill Lynch Securities Research Institute have to say in a good way, but it is really not so simple to double it in a year, Saturn's production capacity is insufficient, and if the market sales cannot keep up after the capacity expansion, This prospect is overshadowed, and it is easy to sell 200,000 vehicles, but it is difficult to sell 500,000 units a year for a single brand, and it is almost impossible to achieve 1 million units in three years......"

"This, Mr. Fit, I disagree, the total sales of the North American market in 92 years is about 19.8 million cars, and the market share of 20 Saturn cars is only more than 1%, and the low starting point makes the prospects more broad, before breaking through the annual production and sales of one million vehicles, it is entirely possible to double in a year! And I already have preliminary plans, of course, depending on our influence on the board of directors of Saturn Motors, I personally recommend that you represent Merrill Lynch on the board of directors of Saturn Motors by Mr. Fett! ”

"So, my young man, are you thoroughly optimistic about the future of Saturn? Chambers has little experience in the automotive industry, Chambers, do you want to be a director of this Saturn automobile? If we really underwrote 900 million shares of Saturn, we would be able to make up at least half of the board of directors...... Even if we have a seven-member board, we have three board seats! Gordon Gauc stopped, Jiang Yelin's description of the future of the Saturn car made him feel a little better, and actually made a joke about Chambers Fett.

"It's naturally no problem to be a nominal director, but if you want to meddle in the daily production, operation and management of Saturn Motors, I don't have that ability, don't rely on my head for poor performance at that time, then I won't do it!" I know how much I ...... Head, don't bury me! Since the big order of Saturn Motors' IPO was signed back by Django for Merrill Lynch Securities, and the future of Saturn Motors is so important, it is directly related to whether we can get out of the mud pit of underwriting. Chambers's head shook like a rattle, and he directly threw Jiang Yelin out as his shield.