Chapter 146 Malicious Shorting

"Mr. Zhong, I have met the conditions you requested. When do you think we'll be able to sit down and talk? ”

After hanging up Soros, John . Mark couldn't wait to call Zhong Shi, his tone a little smug and a little anxious.

In fact, it wasn't John. Mark persuaded Soros to take a position in Volkswagen, but after Zhongshi's trip was exposed, Soros entered the market after GuΓ²'s research on the German capital market and concluded that Volkswagen shares were promising. Now since John. Mark put forward the conditions, and Soros just went along with the current, telling the other party about his position, and at the same time smoothly withdrawing all the more than $5 billion in Stanley's account.

Hedge funds have a much sharper sense of market hotspots than investment banks.

John. Mark was frustrated, but when he thought about it, he couldn't help but be happy. Because he could have attributed the credit to himself, and Zhong Shi had no way of knowing. Thinking like this, he was suddenly impatient in his heart, and he didn't care about the jet lag, so he hurriedly dialed Zhong Shi's phone.

"Really?"

Zhong Shi was a little surprised, thinking to himself that John. Mark and his team have such a great ability to guide Soros to invest in individual stocks. Within X-Spatial Fund, the macroeconomic reports and strategies of investment banks are only used as a reference and cannot be used as first-hand information for investment decisions. Zhong Shi has done statistics on the analysis reports and strategy reports of dozens of top investment banks recognized in the industry, and the one with the highest accuracy is only 52.1%, which is really too low, so he trusts the judgment of the researchers on their own field investigations.

Zhong Shi believed that the same was true of the Quantum Fund, which is why he was surprised by what Stanley claimed. But when he thought about it, he laughed dumbly, no matter what the reason, as long as the other party entered the trap, it was enough.

"I'm sorry. John, we have no interest in Stanley's shares! ”

Just in John. While Mark was dumbfounded, Zhong Shi said lightly, "But John, I'll introduce you to a more powerful buyer who is very interested in Stanley. And it's your old friend. ”

β€œβ€¦β€¦β€

John. Mark was speechless for a long time, and couldn't stop complaining, "Mr. Zhong, please don't make such jokes in the future." God, I'm the one who had a heart stent. But Mr. Zhong, I'm curious, who is interested in us, or is it our old friend? How much are they going to invest? ”

"Of course it's Huatou!"

Zhong Shi happily gave the answer, "They are still interested in your equity. And they have already invested a lot in you in the early stage, and now they can't afford to fail, so they will continue to invest. ”

"Really?" John. Mark's voice suddenly lowered, obviously not excited enough, "If that's the case, then they will definitely not buy 9.9% of the shares, so we may not have enough money to raise." ”

CIC had previously bought some of Stanley's common stock in the market, and then billions of dollars in convertible bonds. Now, if we inject more common shares, we will certainly not buy the full 9.9% of the shares. This was for Stanley, who was eager to get cash into the stake. Not so much good news.

However, Zhong Shi didn't pay attention to this, he clearly heard what the other party said, "It may not be enough", and immediately asked, "What, John, there is a problem with your cash flow?" Why do you say 'probably not enough'? ”

"δΈ€qiΔ“ are all in the control zhΓ¬!" John. Mark shuddered and quickly changed the subject. "Alright, Mr. Zhong, thank you for the connection. Now I will call my dear Mr. Gao and welcome them to fly to New York immediately. ”

Zhong Shi smiled and didn't say anything more.

In the past two days, rumors have been flying in the market. The Natural Sky Fund also heard the "rumors" about Stanley, and if the "rumors" came from John. Mark's mouth was confirmed, proving that the current situation of Stanley Company is indeed more difficult. Mark won't be unscrupulous and say "fly to New York at once" nonsense.

Presumably the current position of chairman of the board of directors of Stanley Company, John Stanley. Mark must be on pins and needles.

……

In fact, at this time than John. Mark is more like a big man on pins and needles, Henry. Paulson is one of them.

"Sir, you must save us!" Frank pleaded over the phone, "No, maybe it's not us who is saved, it's me, it's Goodman." The impudent Stanley Company is spreading rumors about us in the market, and by the time the market opens tomorrow, our stock may be under tremendous selling pressure. ”

"That's not a problem, the problem is that those malicious short sellers will definitely take advantage of this opportunity to attack us. This basic routine is to spread rumors to lead the stock price to fall, and then the rumors become more prevalent, which affects the stock price even more. These are not reflections of the company's fundamentals, but someone is manipulating the market and maliciously shorting! ”

"Malicious shorting?"

Paulson laughed angrily and mercilessly sneered, "Are you crazy, Lauder? Can you think of any excuse? Whether you buy or sell, it's a spontaneous profit-seeking behavior, and you know this better than me. Could it be that when others sell or short your company's stocks, they are maliciously shorting? ”

"It's indeed a malicious shorting!" Blankevan's categorical and unhesitating, as if occupying the moral peak, "I don't know about other companies, but what is certain is that the institutions that shorted Goodman at this time of turmoil in confidence are all malicious short-sellers." ”

"Alright, alright, Lauder!" Henry. Paulson smiled bitterly and said helplessly, "Even if you're right, they're malicious short sellers." But what do you mean by this? You know I'm busy right now, just tell me what you mean! ”

As a former boss and colleague, Paulson is difficult to refute Blankefan's face, but that doesn't mean he agrees with the other party's point of view, he just doesn't want to continue to dwell on it and waste time.

"I want you to issue an order prohibiting malicious short selling in the market!" Belankvan said unhurriedly, "Yes, it's forbidden. Whether it's long-term or short-term, as long as malicious shorting is prohibited. ”

"What the fuck are you doing?" Paulson's voice suddenly rose an octave, and he was really shocked and angry. Even the swear words blurted out, "Are you crazy?" You even made such a request to me? Who do you think I am? ”

"Sir, it's not too much to ask for at this time!" Blankevan was still unhurried, and he expected Paulson to react like this, so he was silent for a moment before continuing to speak slowly. "Henry, if you think about it carefully, if after the Kaminari Brothers, companies like Goodman and Stanley are brought down by malicious short sellers, the entire market may collapse completely. Not just in the investment banking world, but any company we do business with could be their next target. ”

"It's funny!" Paulson continued to sneer, "Even if the market collapses around the world, I can't change the rules rashly. Do you know what that means? Even if the stock market is a casino, it must be a casino with rules. Just because there are rules. That's why investors will enter the market. Now you're asking me to get Cox (the chairman of the SEC) to change the rules, and that's no different from stealing. The market collapsed because of confidence? I think if the rules are changed, the market will collapse. ”

"It's not!" "Henry, you have to see that even if the market doesn't collapse, companies like Goodman and Stanley collapse. In whose hands will this wealth end up? Don't be stupid, Henry. This wealth ends up in the hands of those hedge funds and the billionaires behind them. This redistribution of wealth, in which ordinary people do not gain at all, will suffer losses from the collapse of institutions like ours. Those who have no pensions, those who are unemployed and need assistance, they are the biggest victims. Can you watch these people pay for the transfer of wealth? ”

I have to say that his words reached Paulson's heart. So much so that the other party did not speak for a long time.

"When they are maliciously shorting financial institutions and frantically withdrawing funds from their brokerage accounts, we really shouldn't condemn them for anything, because profit-seeking is in everyone's nature. But Henry, you as the Secretary of the Treasury of the United States of America. Shouldn't you stand up and do something? If you don't do something, the day the financial system collapses, you're the sinner of the whole society. ”

Blanke's Sanskrit words are heart-wrenching, and they go straight to the depths of Paulson's heart.

For Paulson, it is true that the life or death of financial institutions has nothing to do with him, but the problem is that the life and death of financial institutions affect the life and death of most ordinary people, which is very important to him, and he cannot ignore it.

"Then what good do you have?" Paulson finally let out a long sigh and reluctantly.

"If I were you, I'd be like those western cowboys and shoot a few shots into the empty streets to let them know I'm coming, and I'm not easy to mess with!" Berankfan was overjoyed and said viciously, "The first thing I want to do is to stop the shorting of financial institutions, whether this measure is effective or not." But what I need is an 'empty gun' that can shock the damned malicious short sellers and let them know that things have changed and that they can't go on like this. ”

"Don't even think about it, it's impossible!" Paulson replied weakly, "Don't forget that you were very supportive of the congressional debate on shorting a few years ago, and you even paid a lot of money to hire lobbyists." Now that it's your turn to short, you immediately change your position, and you can't get support for this kind of approach. ”

Goodman was still under Paulson a few years ago, so he was very familiar with the qiΔ“. Frank Fan's face was hot, and he didn't say anything more on the subject.

"In that case, issue an emergency order to suspend investors from withdrawing funds from Goodman's brokerage accounts or transferring them away." "Actually, they don't really want to take the money out of these accounts, because these accounts help them make money. As long as we're sure that Goodman or whatever's cash flow is abundant, they're not going to take those funds out. ”

"Your method is even worse than the previous one!" Paulson shook his head, "I don't have the right to do that!" Citizens are free to withdraw and deposit funds, and this order cannot be carried out in any way unless I am asked to amend the Constitution. ”

"What about CDS?" Blankevan still did not give up, "Cancel all the CDS on financial institutions in the market, you know that the pressure on us from this kind of derivative is too great." If they could be canceled, I don't think they would be a big problem. ”

"Can you give some practical advice?"

Paulson finally couldn't hold back and yelled into the microphone, "Do you know how big the CDS market is for financial institutions? If that's the case, I might as well just invest that money to save the financial institutions! ”

"It works!"

After a long silence, Bellakfan said leisurely, "Yes, it is to prepare a large sum of money to save the financial institutions." (To be continued......)

PS: In order not to let everyone wait too long, today I will take the time to write a chapter on my mobile phone, everyone will watch it first, and I will try to update it on time after the author returns, I hope you will continue to support this book, by the way, thank you for not me last night two days ago, and I voted for the monthly pass!