Chapter 49: The First Loss in History (3)

After Soros finished speaking, John . Mark immediately understood what the other party meant, this is Soros wants to borrow the SEC's hand to clean up the bell stone.

After the stock market crash in 1929, the U.S. government learned from the pain and began to crack down on all kinds of shady scenes in the capital market. The Securities Act was passed in 1933 and the Exchange Act in 1934, and the Securities and Exchange Commission, or SEC, was established under these two laws. The institution that governs the capital markets wields almost boundless power and is directly accountable to the president. It can investigate anyone, any object, and the person concerned may not refuse.

Most powerfully, the right to file a class action and the presentation of evidence by the defense under these two laws can completely defeat almost any institution suspected of insider trading. The so-called class action right, that is, if one shareholder lawsuit is successful, then all stakeholders must act according to the case; The burden of proof is to shift the burden of proof to the defendant, and if the defendant cannot prove his innocence, he will be found guilty, that is, "there is no doubt about the guilt".

Since the promulgation and strict implementation of these two laws, the capital market in the United States has been completely renewed, and an orderly financial market has also promoted the rapid development of the real economy. It has to be said that the United States' ability to recover from the Great Depression and occupy the position of the world's leading power for decades is inextricably linked to the prosperity of the financial market. Much of the credit for making financial markets so prosperous is due to these two laws.

Of course, this does not mean that there is no insider trading in the capital market in the United States, in fact, no matter which country or market, there are people who take risks every day, and dirty transactions happen all the time. But here. Once targeted by the SEC, the price to be paid is probably the heaviest in the world's financial markets. Even if a super consortium is investigated by the SEC, although they can hire the best lawyers in the United States, in the end, few consortiums dare to go to court and engage in a verbal war with the prosecution. They can only accept the prosecution's settlement terms privately. pinching his nose and offering a large sum of money to "consider himself unlucky".

And if the SEC targets Zhongshi, it will undoubtedly be a disaster for the other party, especially if it has enough evidence. John. Mark instantly thought of a plan to kill people with a knife.

"Tom, take line three."

After telling Soros about his plan and getting the other party's approval, John . Mark dialed Tom, Stanley's Chief Risk Management Officer. Dalaire's phone call began a secret telephone conversation between the three parties.

Tom. Dolaire was in his forties and slightly thin. Wearing a pair of flat glasses, the whole person looks very bookish. He was poached by Stanley from a university professorship, and as a professor of statistics, he had a bright future in academia, but the lure of a multimillion-dollar salary a year was too much to resist, so he jumped from Cornell University to Stanley as chief risk officer.

As one of the few executives in the company who is not factional, Tom . Dalaire is only focused on obeying orders from the board of directors and the CEO, and embodying these instructions in his work. Originally, he had a lot of complaints about the trading department's involvement in high-risk areas. But the huge profits made by the trading department forced him to shut up, and as a result, the subprime mortgage market deteriorated. There were losses in some of the transactions, and they were extremely large losses, and he was immediately pushed to the forefront.

If in fact, Tom. A large part of Dalaire's responsibility is due to John. After all, it is impossible for Mark to go against the strategy dictated by the company's top management. But after this happened, the responsibility can only be attributed to himself. After all, it is impossible for him to accuse the company's top management of the strategy of being problematic, otherwise how can he explain the previous ultra-high profit accounting?

Tom. Dalaire was well aware of his current situation, and although he had spent a long time on a college campus, that did not mean that he was unaware of these complex struggles, although he was very sad in his heart. But that's the norm in the Wall Street workplace. In fact, he was ready to leave, and it was a big deal to go back to school and continue to be a professor.

When receiving John. After Mark's call, Tom. Dalaire thought that this moment had finally come, and his original anxious feelings were suddenly swept away, and what should have come had finally come, he said to himself. But soon, he realized that something was wrong, because it was not a call between two people, and the illuminated buttons showed that there was another person online.

Maybe it's the lawyer, Tom. Dolaire took it for granted, but now it didn't matter, Tom calmed down a little, and said calmly, "John, what's the matter, are you planning to fire me?" ”

Without waiting for the expected affirmative answer, two chuckles were heard, Tom. Dalaire's face immediately flushed, as if he felt insulted, he stood up and closed the door of his office, and then yelled into the phone, "Damn it, John, what the hell do you and your lawyer mean?" God, don't you even have this kind of grace? ”

Hear Tom. Dalare's annoyed voice, John. Mark and Soros realized that something was wrong, and they both restrained their laughter. After a light cough, John. Mark said, "Tom, calm down, my buddy. This isn't a call to fire you, and I won't be so ungraceful. Meet another one on the line. Soros, I'm sure you know him, right? ”

"Soros?" After hearing that John. Mark's explanation was followed by Tom. Dolaire's anger subsided a lot, but when he heard Soros's name, he was stunned, and after holding the glasses on the bridge of his nose, he subconsciously asked a rhetorical question, and then realized that something was wrong, and quickly greeted, "Hey, it turned out to be Mr. Soros, it's a pleasure to talk to you." ”

Despite Soros's fame, Tom. Dalaire would not be naΓ―ve to think that the other party was planning to dig into the wall, but he was confused about the specific purpose of the other party, and after politely greeting Soros, he muttered softly: "Wow, what the fuck is going on, why are even hedge funds involved?" ”

"Hello, Tom, I'm glad I was able to talk to you too." Despite the fact that Tom. Dalare's voice was low, but his words were clearly captured by the two people on the other side of the phone. Mark coughed awkwardly, not explaining anything. Instead, Soros spoke with interest, "Tom, you may wonder why I'm online. Honestly, there is a good thing to be handed over to you, and if you can complete it smoothly, you will never have to worry about your livelihood for the rest of your life. (To be continued......)

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