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

"Boss, maybe you still remember, at the beginning of this week, Mr. Guò Fitt applied, and finally with your approval, the leverage of the three funds in the G3 series was temporarily increased to a ratio of 1:3......" Jiang Yelin said coldly, Gordon Geko was stunned when he heard this, and hurriedly went to see Chambers Fett on the side, and the general manager of the central sales department nodded, "There is indeed such a thing, the ratio of financing is still 1:1, but the ratio of securities lending has been increased to 1:3...... Did you throw away all the 51.3 million shares of GM that were borrowed from the three major shareholders of GM?!! ”

"Stocks that were financed at such a large price, why should they be borrowed if they are not thrown away for short selling? The 51.3 million shares of General Motors were transferred from the accounts of the three major shareholders of General Motors to the accounts of Merrill Lynch. For this reason, Merrill Lynch paid 273.53 million securities borrowing and lending fees, and through this week's short selling operation, the average selling price of 51.3 million shares of General Motors stock was 53.575 US dollars, so the funds we have withdrawn now are 2,748.39 million US dollars, so Boss, you don't have to worry at all, and you can officially announce it over the weekend, Saturn Motors IPO was successful, and Merrill Lynch Securities became the majority shareholder of Saturn Motors holding 50% of the shares! ”

Jiang Yelin's words made Gordon Geck and Chambers Fett dumbfounded, and together with this guy, he worked tirelessly to be a trapeze artist and spent hundreds of millions of dollars to borrow and return the shares of General Motors, which were actually used to sell short to recoup the funds to subscribe for the listed shares of Saturn Motors?! Of course, in the subscription price of $3 per share, Merrill Lynch can also get back 7% of the commission, and the actual equity income of General Motors is 2.511 billion US dollars, which is almost all the investment that the other party invested in the establishment of Saturn Motors, and now, in addition to the investment of 2.511 billion US dollars through the IPO, the other party also holds the remaining 900 million shares of Saturn Motors with a market value of 2.7 billion, and the big winners are all General Motors. Although this week's stock price decline has caused GM's market value to fall by more than $2.5 billion!

"You mean, now the three funds of the G3 series have 2,748.39 million available funds in their accounts?!" Gordon-Gecco was simply surprised and delighted, he didn't expect Jiang Yelin to have such a one-handed arrangement, Nima is equivalent to Merrill Lynch paying 273 million securities borrowing and lending costs and obtaining 900 million new shares of Saturn Motors in 11 months......

"BossIn fact, because we shorted and sold 51.3 million shares of General Motors stock at an average price of $53.575, and now GM's stock price is $47, which means that our floating income on the short sale of GM shares alone is already $337.29 million, that is to say, the bill of $273.53 million paid from the three major shareholders of General Motors was paid by investors who were long on the stock market for our Merrill Lynch!"

What Jiang Yelin didn't say is that because the stock price of General Motors fell to $47, the market value of the largest automaker in the United States actually fell below the net assets, which made the Saturn Motors listing price of $3 appear high, so many long-term investors believe that instead of subscribing to the Saturn Motors for $3 a share, of course, it is better to buy the stock price of General Motors at a discount of 10% to the net assets, which is why the G3 fund sold short all the way and smashed the market. And the reason why the funds undertaken by the bulls have always been going forward and taking over the market.

"Boss, the board of directors of General Motors is extremely dissatisfied with the current situation where the market value has fallen below its net assets, which has led to the miscarriage of GM's new $1 billion three-year corporate bond bidding, because the annualized yield of the bid is actually more than 12%, which is about to catch up with junk bonds......" Chambers Fett carefully reminded the two in front of him on the side, Merrill Lynch Securities Center Business Department is under tremendous pressure, once the Saturn car plan suffers a setback, it is not only General Motors that will be hurt, The $2.7 billion that Merrill Lynch threw out is real money, and by the end of the year, it is going to buy back the shares and return them to GM shareholders, and the more than $2.7 billion in the account is just a temporary loan for securities borrowing and lending.

"Booss, this weekend, I am going to find a way to borrow no less than 50 million shares of General Motors shares back, this matter has to be authorized by you to continue to give me, last weekend when we went to talk about securities lending, only three of the top ten shareholders accepted our request for securities borrowing, this time, I am ready to borrow 37 million shares of General Motors shares in the hands of UAW to also borrow and lend money, General Motors' stock price fell like this, these major shareholders should have been unable to sit still, In fact, they can avoid misjudging the situation and selling GM shares for at least a year, and they can also earn an annual return that exceeds the 10-year US Treasury bond......"

Jiang Yelin's words made Gordon-Gecco fall into deep thought, the problem of Saturn Automobile's IPO is no longer there, of course, the 2.7 billion US dollars after the realization of securities lending and financing is only a temporary solution to the cash flow problem of Merrill Lynch Securities, and the performance of Saturn Auto after listing is the key to whether this transaction can make money in the end, at this time, this amazing boy in front of him actually wants to borrow 50 million shares? "Django, it's just Chambers and me here, don't talk to me about insider trading and manipulating stock prices, I want to know, what is your purpose in financing another 50 million shares?!"

"Yes, Django, I think Merrill Lynch's steps are too big, the assets under management of the entire GPC are only 77 billion, and you have added 2.7 billion new securities borrowing and lending, and now you have to add another 50 million shares, according to today's General Motors closing price, it is 2.35 billion US dollars, not counting the 13 million shares of Ford Motor that you borrowed from the Bullock Group before! That's $670 million! "It's obvious that Chambers Fett is a little anxious right now, Django is a money-making boy but too bold, and Gordon Gaeco is so indulgent to this guy.

"Boss, securities lending is equivalent to financing, but financing can not lock in the market circulation chips, securities lending can control the number of chips in the market, GM's stock price is now in a state of collapse, rather than let our competitors smash the chips in the past, of course, this is the most appropriate for us to do our own trading, from a positive point of view, we are in order to lock in chips for GM's major shareholders, to avoid the stock price crash and lead shareholders to loosen their chips, once the meat is sold and the stock price rebounds, Then these major shareholders will really hate us to the bone......"

"Go on...... Say it all, I don't believe that you are thinking about this point, for the sake of the major shareholders of General Motors? It's useless to tell me this! Merrill Lynch Securities is the first to control the risk and the second is to make money, and the rest is nonsense! "Gordon-Gecco's love is obviously much better than just now, one is that the funding problem of Saturn's IPO has been solved, and the other is that the wonder boy in front of him, who has not even gone to business school, obviously has a bigger trick and scheme, and he still underestimates this guy.

"From a negative point of view, of course, in order to continue to smash the stock price of General Motors down for a while, according to the transaction returns, we short-sold 51.3 million shares of General Motors shares, basically all of them were taken by Goldman Sachs, Morgan Stanley, Salomon Brothers and Credit Suisse First Boston, of course, this is a big burden for them, and now in fact the stock market has formed a long-short confrontation situation in the General Motors and automobile manufacturing sectors, and our Merrill Lynch is the largest short. And other investment banks and brokerages that bought the bottom into General Motors are bulls......"

Before Jiang Yelin's words fell, Chambers Fett on the side couldn't help but say, "Django, you said that the average transaction price of the G3 series fund to sell the 51.3 million shares of General Motors is $53.575, since Goldman Sachs and Morgan Stanley are bulls, why did the stock price fall all the way to $47......"

"Chambers, what's going on with your brain lately? Can't see this? When there are only stocks in hand and no funds, even a 2 million shares can smash the stock price down several points, not to mention that the small and medium-sized investors and fund institutions in the market who see the wind and rudder have stopped losses after the stock price fell below $50, and the sell-off swarmed Goldman Sachs and Morgan Stanley backhanded...... Am I wrong? Gordon Gaeco's tone was tinged with displeasure with Chambers Fett.

"Boss is right, but after the G3 fund sold short above $53, the decline at $53-47 still fueled the long short operation, and even in order to avoid potential risks, we bought 10 million shares of General Motors at $51, smashed it out from $51.50 backhand, and lost 50 cents per share, of course, the stock price dived directly from $51 to break through $50...... This kind of operation is in the range of 48-49 and 47-48 US dollars, and we will operate it once or twice a day, so now the buying of the bottom in the market is getting weaker and weaker, and even many institutions are pessimistic that the stock price of General Motors will fall below 40 US dollars! ”

"Well, these details don't need to be told to me, Merrill Lynch's major fund managers, as fund managers, have 100% of the power to manage fund investments, and it should be noted that Merrill Lynch will never manipulate stock prices and insider trading, this, Django, Chambers, both of you must always remember!" The president of GPC, who was still shouting that stock price manipulation or insider trading is shit just now, sat down on the sofa leisurely and lit a Havana cigar by himself, he knew that Jiang Yelin and Chambers didn't smoke much in the company now, so they were also polite.

"Well, Chambers, I thought about it for a long time, the style of G3 Fund and Django is still a bit out of place with the central sales department, in order to control risks and not affect other businesses of Merrill Lynch, I am ready to set up a new GPC venture capital department, G3 series funds are allocated to this department, the department personnel should be capable and concise, this department is directly responsible to me, so that you can liberate the general manager of the central sales department, of course, the Saturn listing IPO issuance is also under the central sales department responsible for implementation, What are your good recommendations for the general manager of this new department? ”

Gordon-Geck's words were tantamount to asking in vain, Chambers shook his head helplessly, and both of them turned their eyes to Jiang Yelin on the side.