Detroit, Michigan, USA, General Motors Headquarters, Chairman's Office

"Mr. Bieber, it's a pleasure to meet you, I'm Django Ye from Merrill Lynch, I thought you were at the UAW headquarters on the weekend, but I didn't expect your secretary to say that I could only see you at the headquarters of General Motors...... Jiang Yelin smiled and stretched out his hand to shake hands with the new chairman of General Motors, Owen Bieber, a 62-year-old blue-collar worker, was the director of the production department of General Motors in the first half of his life, and became the president of the General Motors division in the UAW in the second half of his life, which is a typical representative of inspirational people.

"Hmm, are Wall Street all workaholics? Mr.Ye, if my news is correct, you've been a regular visitor to Detroit every weekend lately, right? Is the issuance of the Saturn Motors IPO under your control? I'm afraid your boss will be very unhappy this time, and the issue price of $3 per share is all down Merrill Lynch in the end, right? I heard Francis say that the $2.7 billion raised by the Saturn Motors offering next Monday will go to our General Motors account? "

On the one hand, the UAW he represents is the largest shareholder holding 10% of the shares of General Motors, on the other hand, this is the first time that a director of UAW has served as the chairman of General Motors, and it is not an exaggeration to describe it as a real name, of course, the daily operation and management of General Motors is still the business of President and CEO John Francis Smith Jr, but unlike the former chairman Smail, who was forced to retire, Owen Bieber was the first ally to single-handedly elevate Smith to the position of president and CEO, and the two sides agreed on the board of directors in the Saturn auto IPO plan.

So, now is the honeymoon period for the board of directors and management, and it is also the honeymoon period for Owen Bieber and John Francis Smith Jr to work together, of course, the price of Saturn's listing in exchange for a bit of a big unimaginable price, General Motors' stock price has soared from the initial $62, and now it has fallen all the way to $47, and in just half a month, GM's market value has fallen by more than $5.5 billion, and now the stock price is actually lower than the net assets per share!

And the initiator of this qiē is obviously the young and handsome Merrill Lynch Securities fund manager in front of him, this yellow-skinned Asian Wall Street wonder boy with dual citizenship of Maple Leaf Country and the United States, the successful person is not to blame, but can such a young guy really control billions of assets and persevere? This question may not be answered by himself.

"That's true, I didn't expect the last two weeks of the blue-chip auto sector is too unexpected, General Motors' stock price has fallen below the net assets per share, investors and institutions of course think that spending three dollars to subscribe to the net assets of only one dollar of Saturn new shares can not be worth at all, Merrill Lynch underwrites the 900 million shares of the new shares financing pressure is indeed very great, but we are extremely optimistic about the future of Saturn cars, this is the last chance for the three major North American automakers to turn over and block Japanese and German cars, only success can not fail......"

Jiang Yelin's words sounded full of confidence, as if Merrill Lynch's underwriting financing of $2.7 billion on Saturn Motors was a piece of cake at all, of course, Owen Bieber has been immersed in the automobile manufacturing industry for 40 years, and he understands in his heart that GM's shape this year is better than last year, although the stock price is falling a little bit now, but don't forget, it is the shareholders and not GM itself that will lose money due to the decline in the stock price. GM's IPO plan to list Saturn Motors has withdrawn 2.5 billion funds in one fell swoop, which is basically all the investment of GM in Saturn Motors in the past few years, so this deal can be worth it, you must know that after listing, GM still holds 50% of Saturn Motors' shares, even if it falls below the issue price, the stock price falls to $2 a share, which is also a market value of 1.8 billion shares, which is a good deal!

"As the chairman of General Motors, I certainly hope that the development of Saturn Motors will be as you wish, young man, on this sunny afternoon weekend, I don't know what I can do to help you? Financing with General Motors is definitely not good, our new corporate bonds have been miscarried because the stock price has fallen too much, and to be honest, my chairman is sitting on the crater with his butt now, and his life is not good...... Of course, the day-to-day management of GM is still Francis's remit, but it seems like he's supposed to meet with customers in New York today......"

"Mr. Bieber, to tell you the truth, it was my boss Gordon Geck who asked Mr. Smith to meet for dinner at noon, and I am here to talk to Mr. Bieber, the representative of UAW, about Merrill Lynch's business of borrowing and lending securities from UAW to General Motors, perhaps you also know that in order to stabilize the stock price of General Motors, we have taken measures to lock in the circulation chips of General Motors by borrowing and lending securities last weekend, however, market rumors and the current performance table of General Motors are not conducive to supporting the stock price, although after our efforts, the stock price has temporarily stabilized at the $47 lineBut we expect that the differences between the bulls and bears will be stricter next week, so I am here to represent Merrill Lynch Securities to borrow 37 million shares from UAE! ”

"Securities lending? Merrill Lynch is really wealthy, and when the stock price is falling so sharply, do you still want to borrow securities instead of financing? I'm a little confused...... "Irving Bieber is indeed a little surprised, I don't know what the Wall Street elite think in their heads, I have never heard of supporting stock prices by securities lending rather than financing, of course, securities borrowing and lending is a good thing for UAW, in the case of a decline in stock prices that causes the market value to shrink, the rate income from securities lending can greatly compensate for the potential losses, in fact, due to the poor liquidity of the large blue chip stock market in the United States, In most cases, securities firms only rely on their own stocks to meet the needs of small and medium-sized investors and institutions, similar to the tens of millions of shares in the hands of major shareholders can not find buyers for securities lending, which is equivalent to idle.

"Securities lending is to lock in chips, and secondly, it can also make short-selling institutions throw a mouse, once the other party does the opposite stock price is held up by the buying, the other party wants to sell short but will be due to the lack of the number of securities borrowing and lending and lead to a failure, of course, Mr. Bieber, this is by no means an insider trading or stock price manipulation, after all, anything can happen when the market changes, Merrill Lynch can say that we are optimistic about the future of Saturn Motors, and at the same time optimistic about the future of General Motors. We are confident to invest in blue-chip publicly traded companies like Saturn and General Motors! ”

Jiang Yelin's words are all clichés, but the shock to Owen Bieber is still not small, to be honest, the top ten shareholders of General Motors and thousands of institutions and funds that hold GM stocks, most of them are long-term investments and rely on annual dividends as investment returns, the fluctuation of stock prices in fact has little impact on the confidence of these shareholders, the benefits of Saturn Motors' listing to General Motors are obvious, not only through guò financing to alleviate the tight cash flow situation, The funds invested in Saturn cars in the past seven or eight years have been recovered in one go, and if Saturn's performance and production capacity go up like the prospectus, the future is absolutely bright!

"Okay, young man, although the securities lending business should be discussed at the UAW headquarters, but who told me to be so lazy to go out with two shoulders, 37 million shares of General Motors, Merrill Lynch really wants to borrow and borrow all the shares? How long? How are the rates calculated? What about the payment terms? If you can't impress me, even if I have the heart to help you, UAW is not up to me alone! Owen Bieber smiled and lit the cigar in his hand, and the young man with the beard in the gold-rimmed glasses in front of him looked like a fortune boy who had delivered it to the door.

"Mr. Bieber, you also know that the capital is very tight after the Saturn Motors is listed on the stock market of our Merrill Lynch Securities, so we hope to borrow 37 million shares from UAW at a rate of 8% for 11 months, worth $1.739 billion, and return 37 million shares and pay 139.12 million securities borrowing and lending fees after maturity, in fact, Mr. Bieber, if I come back next week instead of now, every dollar drop in GM's stock price will reduce UAW's securities lending revenue by 2.1 percentage points...... I think Merrill Lynch's sincerity should be seen by you! ”

Owen Bieber pondered for a while when he heard this, and raised his eyebrows and said, "8% is definitely not good, I know that Merrill Lynch Securities has a rate of more than 9% for securities lending from several other top ten shareholders, and now the stock price has fallen a lot, which has saved Merrill Lynch a lot of money, and if I lower the price so much in the rate, I can't explain it to the UAW side......"

"Mr. Bieber, I think Merrill Lynch has expressed the greatest sincerity, the market is changing every week, a week ago we didn't plan to pay 2.7 billion US dollars to eat all the 900 million shares of Saturn Motors that no one subscribed for, I always thought that there are people of insight in this market who can share and share the future of Saturn Motors with us, and now this huge gap needs Merrill Lynch to fill, to be honest, at the moment when the general motors stock price is in turmoil, the major shareholders have locked in the chips held by the securities lending agreement, itself is a ...... of support and trust for listed companies"

Jiang Yelin's implication is that old Jianghu like Owen Bieber naturally understands, and it is indeed true, if major shareholders join the ranks of selling stocks with the continuous decline of stock prices, then other small and medium-sized investors and institutional funds will be even more impatient to sell frantically, and the stock price is likely to dive unexpectedly, which will seriously affect the daily operation, production management and financing of listed companies, especially the ability to issue corporate bonds for financing.

"8.5% is the bottom line for UAW, and Merrill Lynch must ensure that Merrill Lynch will lend a helping hand if GM has financing difficulties before the year-end equity registration date!" Owen Bieber's bargaining style is a bit unexpected for Jiang Yelin, especially when Merrill Lynch did not ask Merrill Lynch to guarantee GM's stock price, but asked for a guarantee of cash flow financing needs?

"8% is the bottom line for Merrill Lynch, and this week we only offered 7% of the borrowing and lending rate for other shareholders with more shares...... As for the future of GM, we have no worries, and we are bullish on GM and Saturn that there will be no change in their views in a year! Jiang Yelin did not back down, and after a long time, Owen Bieber let out a long sigh and nodded!