Detroit, Michigan, USA, Hilton Rooftop Restaurant

"In that case, why does the G3 Fund still limit the single subscription limit for institutional investors?" Belfort's implication is that the larger the amount of funds in the G3 fund, the easier it will be for Jiang Yelin to achieve the performance indicators, a fund with a net asset size of 1 billion, with a ratio of 1% of the fund management fee alone can have an income of 10 million per year, of course, the survival and maintenance of a fund, manpower, venues, qualifications, transactions, travel expenses, research, and even various activities are the source of cost expenditure, not that a fund manager can manage a large fund, otherwise just subscription and redemption will toss the dead!

"Water can carry the boat, can also overturn the boat, blind expansion of the share will make us quick success, can manage a net worth of 100 million fund managers, in the management of 1 billion level of funds are likely to encounter unexpected difficulties, to know that such as the G3 fund such Merrill Lynch internal funds, can only be regarded as a quasi-private equity fund under the securities company, if the listed company can not bring dividends to investors to grow, then the stock market and stock price fluctuations are just a zero-sum game, we earn is someone else's money, In fact, this is not conducive to long-term development, in a word, step by step, feeling the stones to cross the river, the scale of G3 fund control is also our responsibility to investors! ”

Jiang Yelin's words made the helmsman of RMBT fall into deep thought, and for a long time, 31-year-old Jordan Belfort raised his head and looked directly into the eyes of the young Merrill Lynch Wonder Boy, nodded and said, "I don't think I have any problem, the 18.3 million shares of General Motors held by RMBT can be borrowed to Merrill Lynch Securities, with a term from next Monday to the end of the year, and a financing rate of 9.5%, Based on yesterday's closing price of $56.125 and the number of 18.3 million shares, a total of 97.57 million, we require Merrill Lynch to pay 30 million in advance, and the rest to pay this fee before Saturn's planned IPO, rather than waiting until the financing period expires, which is no problem, right? ”

"Well, I think this can be arranged...... But I'd better ask my boss for some advice first, can you understand? "Jiang Yelin doesn't know whether Merrill Lynch Securities supports similar payment terms when signing a securities lending agreement with stock holders, normally securities lending is equivalent to a loan, generally returning the stock after maturity and paying the securities lending rate, RMBT obviously has expectations or needs for cash flow, maybe the other party is to subscribe to G3, G31, G32 funds this weekend only asked to pay 30 million US dollars in advance, right?

"No problem, waiting for good news......" Belfort made a gesture of please, Jiang Yelin got up and walked to the side, took out his mobile phone and began to call his boss, Chambers Fitter's mobile phone was not answered, and Jiang Yelin didn't know the phone number at home of his top boss, after all, it was the weekend, for middle and senior managers like Chambers, most of the weekend belonged to sacrosanct personal time, Jiang Yelin thought about it, and directly dialed the phone of Gordon Gecco, president of GPC.

"Hmm...... Django, what's wrong? On the other end of the phone came Gordon-Gecke's slightly panting voice, listening to the noise of the background, this guy was actually in the process of climbing a mountain or climbing up the stairs, "HI, Boss, it's me, I'm sorry, I can't find Mr. Fett for a while, I can only call you for instructions, I talked to Mr. Belfort of RMBT, RMBT promised to lend 18.3 million shares of General Motors shares to us, 11-month securities lending rate of 9.5%, according to yesterday's closing price minus fraction, It's roughly a $97.57 million securities lending fee, but RMBT requires 30 million to be paid when the agreement is signed, and the rest is paid before Saturn's IPO. ”

"Hmm...... Jordan Belfort, RMBT assets of 2.5 billion, is he so short of money? Well, although there is no precedent for this, there is always a way, I guess he wants to subscribe to the G3 fund to hedge the risk of GM's stock price, right? It's just 30 million, you can promise him! Gordon-Gecco's answer was clearly pleased.

"OK, Boss, I'm fine, what other instructions do you have?" Jiang Yelin knew that humility and low-key, even on Wall Street, were a very necessary virtue, and Gordon Geco's voice came from the other end of the phone, "Django, in view of the fact that you disturbed your boss's sports and fitness activities during your break, in order to make you grow up as much as possible, of course, it is also to give you greater motivation, I have decided to raise the threshold for your performance bonus from $10 million to $15 million, and if the net profit of the G3 fund for Merrill Lynch Securities this year reaches $15 million, you will get 3% That is, a bonus of 450,000 US dollars, and the part exceeding 15 million will give you a 15% commission ratio! No cap! ”

Jiang Yelin couldn't laugh or cry when he heard this, just such a phone call, is this a punishment or a motivation for himself? Nima originally completed 10 million to get a bonus of 300,000, but now to complete 15 million, he will only get 450,000, according to the original plan to increase the net profit of 5 million, his share ratio is 8% of the total profit of 15 million, that is, 1.2 million US dollars, inside and outside his own phone call is a big loss! Now he has to complete a net profit of 18.75 million US dollars in order to get the bonus that he could get with 15 million......

Of course, the new conditions given by Gordon Geck are not without benefits, the original proportion of performance commission was limited to 3% to 8% of the total profit, and now, a sentence of more than 15 million is not capped at 15% of the commission, which makes people still look forward to it......

"Okay Boss, who told me to disturb your old man's precious time to exercise and climb high, I accept your conditions, please say hello to Mrs. Geco...... See you on Monday...... Goodbye......" Jiang Yelin hung up the phone after finishing speaking, and returned to the table with a bitter face, "In order to meet your payment terms, my big boss has raised the threshold of performance bonuses from 10 million to 15 million, do you think my price is a bit too big?" ”

"Well, I have enough confidence in you, Mr.Ye, please transfer the 30 million to the account of RMBT in the business department of Merrill Lynch Securities Center, in addition to the 18.3 million shares of General Motors held by RMBT to you, but also to subscribe for 10 million shares of G3, G31 and G32 funds, although the amount of hedging funds is insufficient, but, who told me to have confidence in you and your fund?" Belfort felt that it was wise and right to stand in the same trench with the victor, and although the thought of defeating the young man in front of him had been tormenting him, the time had not come......

"No problem, but the net unit value of the G3 fund when it opens for subscription this weekend is $1.8077 per share, so your $30 million can subscribe to 10 million shares of the G3 fund, and the remaining $12 million can subscribe to the G31 fund with a unit net value of $1.20 per share, so G3 and G31 each have 10 million shares, no problem, right?" Jiang Yelin's words made Belfort stunned for a moment, and then laughed, he remembered that although the G3 fund is open for subscription every week, it is not a weekly dividend ex-rights, so 30 million US dollars is enough to subscribe for 10 million shares of G3 and G31 each, and as for G32, there is naturally no remaining funds.

"Hey, stop, Mr. Belfort, I said that I will pay 30 million US dollars for financing costs first, and I can't help any more, and the rest can only be paid before Saturn's IPO, otherwise I don't have the face to call my boss again to ask for an opening, I know that I am not doing things well, and I don't know that I think I have any private agreement with RMBT in it, which I can't afford!" Jiang Yelin stopped Belfort's intention to change the terms of the first payment.

"Okay, I don't think I can make too many requests, but Mr.Ye, how exactly did you plan for Saturn's IPO Merrill Lynch? I know that Merrill Lynch has officially signed an agreement with General Motors to exclusively underwrite the listing of Saturn Motors, with Saturn Motors' net assets of $1.8 billion equivalent to a total share capital of 1.8 billion shares, of which 49% of the shares are used for IPO financing, and the subscription price per share is $3...... The commission is 7% of the financing amount, and the agreement initialed on Thursday night, after the close of trading yesterday, the two parties held a signing ceremony and announced the official signing...... I'm curious, General Motors' net assets to market value ratio is only 1:1.12, and now Saturn Motors has actually underwritten at a floor price of 1:3, where does Merrill Lynch have confidence? ”

Belfort boasts of a unique vision, as the third largest shareholder and board member, also feels that it is a good thing that GM's subsidiary Saturn plans to go public, and it is a good thing for GM to sell $3 a share in the IPO, but it is a big gamble for the underwriter Merrill Lynch. General Motors as the No.1 among the three major North American automakers, in recent years, with the Plaza Accord and the appreciation of the yen, Toyota and Honda, the two major automobile manufacturing monsters in small Japan, have been defeated, due to the heavy burden of pension and medical insurance, 320,000 General Motors have to support more than 500,000 General Motors retired workers, which makes the cost of a single car of General Motors actually 70% more expensive than Toyota and Honda, and Japanese cars have light weight and low fuel consumption, and all kinds of electronic equipment gadgets are dazzling. In the family car segment, Japanese cars are significantly more cost-effective than American cars......

"Things are man-made, Merrill Lynch believes that there is no product that cannot be sold, RMBT instead of holding 1.5 billion US dollars of GM three-year corporate bonds, it is better to subscribe to the shares of Saturn Motors IPO, of course, 1.5 billion corporate bonds will cause some price discounts and losses, but Saturn Motors will bring a new miracle to investors after listing, I know that you RMBT should consider the close relationship with General Motors, however, investing in Saturn Motors and investing in General Motors are originally the same thing, It's just that GM's historical burden is extremely heavy, and it is faltering to deal with the aggressive attack of the Japanese and has no will, while Saturn Motors is different, in fact, I came today, in addition to borrowing securities for Merrill Lynch Securities from RMBT, more importantly, I hope that RMBT will participate in the IPO subscription offer of Saturn Motors! ”