"Good evening, gentlemen, and now I declare an emergency!"

Paulson walked into the room where the CEOs had gathered, and said unusually calmly to a room of executives, "Now, people who don't want to help the Kaminari brothers can rejoice." ”

As the deal is close to being done, CEOs are relaxed. They chatted happily and joked unbridledly, and the whole room was filled with a joyful atmosphere.

Unfortunately, the moment Paulson entered the room, the atmosphere came to an abrupt end. No one dared to joke in front of Paulson, even when the deal was close to closing.

Soon they heard the surprising words, and everyone's faces changed, not that Paulson was announcing that the deal would not be done, but that Paulson was settling the score. Come to think of it, most of them had expressed disagreement with the plan to buy Kaminari Brothers.

"Henry, what the hell is going on?" Jamie. Dimon stood up, his face full of bewilderment, "We have reached an agreement, just announce it before the market opens on Monday." The qiē problem is solved, isn't it? ”

All eyes were on Paulson, hoping for a clear answer.

"We screwed up, this business failed!" Paulson grimaced, "The British government is not going to approve the deal. Moreover, Barclays also needs a process of shareholder voting, and the outcome is difficult to predict. ”

Although Paulson's words were not loud, the whole news exploded in the ears of the CEOs like a thunderbolt in the clear sky. It shook them so much that they panicked and lost their souls. The sudden change left most people at a loss, and they stood there in a daze, unable to react at all.

How so?

"What the fuck is going on?" Jamie. Dimon was surprisingly furious. Not only because the duck in his mouth flew, but also because if the Kaminhamon brothers went bankrupt, JPMorgan Chase and its trading positions would suffer huge losses, which were so big that he burst into foul mouths in front of the US Treasury Secretary, "We already have cash, cash!" ”

Soon, others reacted. Another banker followed Jamie. Dimon's words continued: "How is this possible? Aren't the British our most loyal allies? ”

"No, the British are planning to take the opportunity to blackmail and rob while the fire is on!" Another banker thought he was clever and said, "That's their strategy, isn't it?" Is it a Financial Services Authority...... No, it's Barclays' strategy, they are not satisfied with our asking price, and they figured out guò such a coercion to get more! ”

As soon as this remark came out, it immediately resonated with most people. Instead of looking at Paulson, the eyes turned to Bob at Barclays. Damon. It's just that what makes them feel stunned. Bob at this time. Dai masked's face was as earth-colored as sweat, and he looked like he was about to face a catastrophe.

It's not like it's a gesture to blackmail, see Bob. Most of Damon's reactions were of the same mind.

"It's not our problem!" Bob. Even if Dimon is bold, he would not dare to play tricks at such a time, because it would be like offending the entire American consortium and even the top of the government. I saw him tremble and his lips denied, "This is definitely not our problem. We don't have the slightest intention of blackmailing. Gentlemen, I have only just learned about this. I need...... Let's check it out. ”

Bob at the moment. Dimon was angry, embarrassed, and very discouraged. At such a time, he never expected to fall on the side of the British government, which not only made him lose face in front of his American counterparts, but also made the future of the whole deal uncertain. But there was no point in thinking about it now, and he shuddered and took out his mobile phone to call McCarthy of the Financial Services Agency.

"No need!"

Paulson grimaced. A wave of his hand stopped his "struggle": "I have spoken to senior British officials, including McCarthy and Darling, and they have made it clear and unmistakable. I believe that this decision was made by the Prime Minister, so no matter what connections and resources you have, it is impossible to change the decision of 10 Downing Street at this time. ”

"Click". Bob. With a shake of Damon's hand, the BlackBerry fell to the thick carpet with a muffled sound. I saw that his face was even more ugly, and his whole body trembled violently, as if he would fall to the ground at any time.

Seeing that the opportunity was not good, the person next to him quickly helped him sit down and handed over a glass of water. After a while, Bob. Dimon was relieved, and his face finally regained a trace of blood.

In this case, there is no reason for everyone to disbelieve. Even if everyone doubts Bob. Dimon had an element of acting, but he could not believe Paulson's words.

"We were tricked by the British!"

Although there were many Britons present, Paulson ignored the other party's feelings in anger, and directly said what was in his heart, "Now we have to think about the shock that you may suffer in the market if the Kaminari brothers really go bankrupt." Now, there is no possibility of reversing the bankruptcy of the Kaminari brothers! ”

Paulson has completely qualified the matter, the Kaminari brothers are doomed, and it is time to consider the drastic impact on the market.

"We're in big trouble!" As soon as Paulson's words came out, Jamie. Damon's face immediately sank and he blurted out.

As the settlement banks of Merrill Lynch and Kaminman Brothers, the two investment banks have a huge number of unsettled positions in JPMorgan Chase, and JPMorgan Chase once asked Kamison Brothers to come up with $5 billion to $10 billion in collateral for the collateral of this part of the position, but Kaminmen Brothers has been delaying the talks. And now once the Kaminari brothers declare bankruptcy, this part of the position will basically be frozen, and it will not be possible to untie until the liquidation of their assets is completed. It can take months or even years to go through the entire bankruptcy process.

This also means that JPMorgan must prepare liquidity for this portion of the position.

"Kaminari Brothers also have a large number of open positions in our channel!" Bank of America's Ken. Lewis also said with a solemn face, "In terms of CDO and CDS, their accounts have a huge amount of losses. In the event of a forced liquidation, these losses may even affect our financial statements for the third quarter. ”

Immediately afterwards, the heads of several other institutions also stood up and told about the related party transactions with the Kaminari brothers. Some of these are commercial properties, while others are long-term notes. Some are short-term government bonds. In short, no matter what kind of investment variety, without exception there is one characteristic, that is, huge positions.

This is also the reason why Paulson and Geithner, among others, went to great lengths to save the Kaminami brothers.

Because of the special position of investment banks in the financial ecological chain, they have long become an indispensable link. They package products and sell them to investors and institutions, they provide advice and channels to funds and investors, and they themselves are investors in the market. They are everywhere. As long as you can make money.

In this case, they can connect with either party, and if one of the giants falls, it will inevitably spread to the others. Especially in this kind of market recession, the spread of this panic is very likely to lead to the collapse of confidence in the entire market, and then trigger a chain reaction.

Most of us have lived through the 1987 crash, and most of us, if not not, have experienced the bursting of the tech bubble. This situation of causing the market to plummet due to the collapse of confidence has left everyone with lingering fears.

The reality is far more alarming than a stock market crash or a tech bubble, because financial innovation leads to an overabundance of derivatives. Although the crisis was caused by the CDO, in another related market, the CDS market, such panic must not occur. Because the total value of this market is a staggering $60 trillion, which is more than the global stock market of $40 trillion and four times the GDP of the United States. And in the event that this market collapses, the consequences are unimaginable.

Kaminmen Bros. holds CDS worth around $100 billion in this market.

Therefore, it is necessary to cut off the chain reaction caused by the bankruptcy of the Kaminari brothers. Because no one can afford to take on this responsibility. Not Geithner, not Paulson. Not even the president of the United States.

That's why Paulson and Geithner had asked the various consortia to count their positions in related party deals, and now those numbers are finally useful.

"We need liquidity!"

After everyone finished complaining, it was Jamie again. Dimon took the lead in standing up and demanding, "If the Kaminmen brothers declare bankruptcy, basically their assets will be frozen." The lack of liquidity will seriously affect us, if liquidity cannot be injected in a timely manner. This is a big trouble for all of us here, a very big trouble! ”

"That's in our consideration!"

Just then, Geithner walked in, holding a thick copy of Wen Jiàn in his hand. He first gestured to Paulson, and then began to hand out the text in his hand. "We already anticipate a situation where the liquidity issue will be resolved soon."

"How to fix it?" Jamie. Dimon remained unrelenting.

"Set up a leveling fund from which institutions can get liquidity!" Geithner gave Jamie a faint look. Dimon glanced at it, and his expression could not show sadness or anger, "As for the funds, the Fed will contribute a part, and everyone here will contribute a part." Didn't a funding agreement be reached for the asset acquisition of the Kaminari Brothers? Let's use this part of the funds to join! ”

Without waiting for anyone else to object, Geithner continued: "It is estimated that the equalization fund will need $100 billion in funding. Each of you here is eligible to apply for emergency liquidity assistance up to the sum of your contributions, which is $35 billion. ”

"That way, your liquidity problem is solved." After looking at it with a complicated face, Geithner handed out the text in his hand to everyone, and said lightly in a cold tone, "Those who did not participate in the rescue are not eligible to apply for the relief plan of this equalization fund. ”

As soon as Geithner's words ended, there was a gasp in the conference room. Originally, they were still thinking about what would happen if they refused to rescue the Kaminari brothers, but they never imagined that the Federal Reserve and the Ministry of Finance were playing such a hand behind their backs. Thankfully, all of them here agreed to help the Kaminari brothers, otherwise they wouldn't have their share now.

The most impressive thing is that each family can apply for a bailout of $35 billion, which is exactly the same amount that they would have bailed out the Kaminmen brothers. This figure can reduce the accusations of public opinion against the Federal Reserve and the Ministry of Finance for "intervening in the market" to a certain extent.

There is even a suspicion that these documents have been drawn up a long time ago, but the figure of $35 billion was added last.

By this time, no one had raised any objections, because they were all frightened by Paulson and Geithner's deep scheming: the other party had long been prepared for the possible bankruptcy of the Kaminari brothers.

If they don't, will they be the next ones who might go bankrupt? This is a question that haunts the minds of all CEOs. Now it seems that the law of "too big to fail" has failed! (To be continued......)

PS: PS: It is rumored that the author of "Futures Master", fund manager Liu Qiang (Xiaoyao Liu Qiang) committed suicide by jumping off a building. The high-level long futures index and the allotment of capital to buy shares bankrupted him. Be sure to be in awe of the market! …… By the way, in the next two or three days, there may be some things for relatives at home, and it may be a few days less, so I really can't help it, and I have to make everyone wait for a few days...... Finally, I would like to thank the book friends Demon Dragon Battle Ghost, Secret, tsnkscrj, and cpower for voting for the monthly ticket! Thank you for the reward of the miracle of civilization of Xiaoqi, a book friend!