On September 16, the Federal Reserve issued a statement announcing a bailout of AIG.

In the statement, the Fed authorized the Reserve Bank of New York to provide an emergency loan of $85 billion to AIG, which was on the verge of bankruptcy, for two years, at the interest rate of the London Interbank Offered Rate (LIBOR) for three months plus 850 basis points.

In return, the Fed will receive a 79.9% stake in AIG and will have the power to veto AIG's power to pay dividends to common and preferred shareholders. This basically means that the U.S. government hosts AIG.

At the same time as the bailout of AIG, the original management of AIG also began to change blood, the chairman of the board of directors was purged, and the Fed's preferred person was elected to AIG to form a new management. It is widely believed that this is the government's tightening of its grip on AIG.

As for the reason for the rescue, the official reason given is: "In order to prevent the disorderly failure of AIG, and this failure will hit the already fragile financial market, increase the cost of borrowing, reduce household wealth, and substantially weaken economic performance...... In short, because AIG's position is very important, the US government has to intervene and cannot let it go bankrupt.

The news shocked the market as much as it did three days ago, when the government and the Fed took a laissez-faire attitude. This repetitive attitude made the market feel the urgency of the form, and in a certain way, it intensified people's panic.

In these years, even the government can't be trusted, what else can be trusted?

……

"Damn, they're still coming at us, just like they did to Dick. That's what Fude did! ”

In the office of Stanley's headquarters, John Brown. Mark drank the coffee from the paper cup in one gulp. angrily crumpled the paper cup into a ball and threw it viciously into the paper basket.

Just yesterday, Stanley released its third-quarter financial statements, and the quarterly profit of $1.43 billion was very clear, down only 3% from the same period last year, which means that Stanley has not been affected by adverse rumors such as the bankruptcy of the Kahman Brothers in recent months. But what stunned the Stanley Company was. A few minutes after the market opened today, Stanley & Co. stock suffered a massive sell-off. Within two hours, their share price was down nearly 30%.

Just this morning, the Wall Street Journal also took aim at Stanley & Co. and Goodman, "Stanley and Goodman, are they infighting or surviving?" The catchy headline seemed to tell everyone that it was now the turn of Stanley & Goodman.

Although the heart was already prepared, when the real form came to him, John. Mark still couldn't control the anger in his heart.

He didn't understand. Why did the stock market fall so sharply when earnings were almost the same? But soon it dawned on him that something else was a complete conspiracy!

Just two days ago, Stanley still had $178 billion in cash in bank accounts, which was held to safeguard operations and meet hedge fund borrowing requirements. But on the day Stanley released its third-quarter financial statements yesterday, there were more than $20 billion in outflows. Even worse, some clients closed their brokerage accounts with Stanley at the same time as they withdrew their cash.

This is the rhythm of completely severing relations with Stanley.

John. In the past few years of Mark's administration, he has focused on building Stanley's prime brokerage business. The brokerage fees generated by these transactions have become an important profit point for Stanley. 89 of the world's top 100 hedge funds use the Stanley brokerage channel. Fees incurred for daily transactions are calculated in millions or even tens of millions of dollars. And now, because of a little rumor in the market, there are institutions that want to completely sever relations with Stanley!

John. Mark was surprisingly angry, but he hadn't lost his mind yet.

"This is definitely a hedge fund conspiracy!" He paced back and forth in his office, "They defeated Bear Stearns and the Remman brothers, and now they're going to do the same." us! ”

When hedge funds piled up to withdraw money from Stanley, John Brown. Mark realized what was going on. When the rumors that have been circulating on Wall Street for a long time were verified by himself, he realized that the other party was cunning and powerful, which made him feel a little more inexplicable hatred for Soros.

"No one cares about loyalty, loyalty is no longer worth anything these days!" He stopped. Looking at Chamaha, the managing director in charge of cash management, he said, "Can we close the cash account, or set a lock-up period or something, so that we can slow down the loss of cash." As things stand, in less than a week, our cash reserves will be depleted, and we will be following in the footsteps of Bear Stearns and the Kaminmen Brothers. ”

"Don't!"

Chamaha's face changed drastically, and he hurriedly stopped, "John, even a one-week ban period sends a signal to the market: Stanley's cash account is no longer available. This will not slow down the withdrawal of customers, but will allow them to withdraw their funds more quickly. And if such news is transmitted to the outside world, I am afraid that rumors about our company's problems will immediately fly all over the sky! ”

"So ......"

John. Mark frowned and thought about it, thinking that Chamaha's statement was very reasonable, so he dismissed the idea of banning the cash account, "Are we going to be bought by a large commercial bank like Kamemen Brothers or Merrill Lynch?" ”

While the fundamentals of Stanley have so far been sound, and there has been no case similar to the case of the Kaminmen Brothers whose internal assets were overvalued and then exposed, John Brown. Mark and his staff knew very well that this qiē would not dispel the market's suspicions, or that the institutions that were going to short them simply did not care about it.

Short Bear Stearns, it took them nearly half a year; Short the Kaminari Brothers, it took them more than three months; And now short Stanley, I'm afraid it will only take them a week.

This market is on the verge of collapse.

"Now only Citibank and Midland Bank are capable!" Managing Director of M&A. Charlotte analyzed lightly, "But for them, none of this is likely. Midland Bank itself is mired in a financial crisis, and it is difficult to say whether it will survive this hurdle. Citibank is possible, but wants them to convince the board in the short term. I'm afraid it won't be an easy task. ”

Almost all of the top management of the Stanley Company were gathered in John. In Mark's office, they were now discussing almost a matter of life and death for Stanley, and everyone had to do their best.

"Oh no, there are rumors in the market again!"

While everyone was talking, the door to the room was pushed open from the outside, and a trader ran in in a panic. "There are rumors in the market that we are a counterparty to AIG, and there is a backlog of about $200 billion there, and there is no hope of liquidating it in the short term. Now the market has gone crazy and our stock is falling again. ”

"When?"

John. Mark raised his wrist and looked at Patek Philippe on his arm, 2:45, not far from the closing time, "How much has it fallen?" ”

"Maybe half of it......" The stunned trader saw the room full of people, watching them stare at him. I was very flustered in my heart, and I stammered a little when I spoke, "I just saw ...... When I saw it, it was 38%, and the red straight line, but now it may be 50%. ”

He said as he looked down at his BlackBerry. And the others also invariably took out their mobile phones to check, and when everyone raised their heads again, the specific numbers no longer needed him. After falling 42%, the stock price finally stopped at $16.08.

"What else is there to say?"

To everyone's surprise. At times like these, John. Mark actually reversed his anxious state just now, and asked calmly, "There shouldn't be only one bad news, if there is anything else, let's say it!" ”

"And ...... And ......" The little trader pursed his lips. Swallowing hard, this eased a lot of tension, "There are also rumors in the market that about $50 billion of hedge funds have asked us to withdraw. Then there are other competitors who are competing for our customer resources. Also, the price of our CDS has skyrocketed, more than three times higher than normal. ”

"Not bad. I know! ”

John. Mark waved at the trader. As if he had been pardoned, the little trader quickly slipped out.

"Guys, do you want to know who is behind this qiē?" Without the presence of the junior staff, John . Mark had no scruples, looked at the bewildered executives in the audience, made a grimace, and then dialed the phone number of Goodman CEO Frank Fan, and at the same time signaled his subordinates not to make a sound,

"Lauder, I'm John, John of Stanley."

"Oh, John, hello." Lauder. Frankvan's voice revealed a hint of exhaustion, and Goodman's company was also attacked by the bears, presumably he was not having a good time now.

"That's right, Lauder." John. Mark didn't have time to say hello, so he went straight to the point and said, "The bears in the market are frantically selling our shares and sniping at us in the CDS market. I'm sure you're in the same situation now, Lauder, we're in the same boat. ”

"So what's your plan?"

After a long silence, Blancfan neither admitted nor denied it, but asked John directly. Mark's intention.

"I wonder if we can do this, we can join forces to refute the rumors on CNBC and deny the rumors in the current market." John. Mark said tentatively, "I can't stand those rumors, they have caused incalculable damage to my company. I want us to be there together, which helps the market to see our confidence and strength. To put it simply, we form an alliance against the bears, what do you think? ”

"Alliance? Rumor? Blancfan chuckled, his tone full of disdain, but the next moment he might realize that he was wrong, and quickly said, "John, you and I both know that this is not a rumor at all about the deal with AIG. As for the withdrawal of funds by hedge funds, I am afraid it will not be a rumor. You and I know exactly what this is all about. ”

"We don't have a full-blown crisis yet, and it's unwise to offend the bears now." "It's none of our business, and I personally don't want to be on TV at this time. You should know that before the Kaminmons broke, Dick. Fude has appeared on TV many times to refute rumors, but what is the effect? ”

"I'm sorry, John, there's nothing I can do."

After saying that, Belankfan hung up the phone decisively.

"Gentlemen, you should know by now who our opponent is, right?"

John who put down the microphone. Mark gritted his teeth on his face, and those who saw his expression had no doubt that if Belranke was in front of him, he would not hesitate to tear the other party apart.

"In addition to Soros, the bastard, Goodman & Co. is also manipulating the market, and maybe they are the ones who put the wind on the hedge funds, in order to dominate the market. Even Bear Stearns and the Kaminari Brothers were brought down by them. "John. Mark said almost word for word, "Let me go out and spread bad news about Goodman." I'm going to let the market know that we're bad, but they're worse. ”

"If we're done, I hope they'll be done in an hour!" (To be continued......)

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