Five-eighty-two, mysterious short-selling funds
After Franklin hung up the phone, he suddenly swept all the materials on the desktop to the ground, and then pounded the desktop with both hands, roaring: "Why? Tell me, why is that? β
The three people standing in front of him were so shocked that no one dared to make a sound, so they had to secretly wipe the cold sweat and let the paper flutter on the ground.
After Franklin had finished venting, he finally quieted down, his head propped up in his hands, and his eyes stared blankly at the three people in front of him.
Although these three people are the bosses of the company's departments and are also the leading figures, they are now listless and dare not face Franklin.
"You say, how are we going to deal with these things now?" After a while, Franklin calmed down and asked his three men.
"Why don't we ask Lerante first!" Rogers said.
Rogers, the head of Fannie Mae's financial product appraisal division, said cautiously. This is because Lerante is the CEO of Freddie Mac, and Freddie Mac and Fannie Mae have almost identical main businesses, and they are also a real estate credit finance company run by the U.S. government in order to implement home ownership. It can be said that their two companies are sister companies, one is prosperous, and the other is lost!
Rogers' words alerted Franklin, and he called Lerant again!
Lerante's phone rang for a long time before it was connected.
"Who? ......" came Lerant's angry voice on the phone.
"Mr. Leland, I'm Franklin!" Seeing that Lelant didn't hear his voice, Franklin frowned and introduced himself.
"Oh! ......" Lerant was also stunned and didn't react.
So, two old friends, Franklin and Lelante, both holding the phone, didn't know what to say. Suddenly, the two were stunned in embarrassment.
Across the phone, Franklin could feel Leland's loneliness, and Franklin knew that Leland's Freddie Mac company was experiencing the same problems as himself.
Finally, Franklin sighed inwardly and said, "Mr. Lerant, why don't we go out for a cup of coffee now!" β
Trant was silent on the other side of the phone for a while and said, "Okay! See you at the Michelin Hotel in half an hour! β
After making an appointment with Lerant, Franklin stared at the three subordinates in front of him, but he didn't know what to say! I had to wave my hand and let them go.
Jack, Vanches, and Rogers were relieved, and they couldn't help but breathe a heavy sigh of relief in their hearts, and they rushed out.
When they were gone, Franklin pinched his temples with his fingers, but his eyes unintentionally fell on the East Pearl on the table, which he had photographed at a charity reception a few days earlier.
At that time, how proud of himself was, fresh clothes and angry horses, and throwing hundreds of millions of dollars, but in a blink of an eye, the company fell into a financial crisis, and if the company could not deal with it correctly this time, he and his company would be beaten into the dust.
The bead was placed firmly on Franklin's table, and it had not been swept to the ground by him just now, and under the illumination of the light, the bead emitted a misty halo, and in the halo, Franklin's deformed face was reflected, and this deformed face had an equally deformed eye, revealing a mocking look.
When Franklin saw this, he felt an inexplicable palpitation, and he screamed and fled from his office.
Franklin fled as far away as possible from the orb, and he felt the eyes in the orb keep staring at him for a moment.
Half an hour later, he met Lerante at the Michelin Hotel.
"What's wrong? Mr. Franklin! β
Seeing that Franklin was pale, sweating profusely, and panting like thunder, Lerant asked with concern.
"Oh! It's nothing, the sun is so big! β
Franklin pointed to the sky outside, but the sun was hidden in the clouds, and besides, he had come in a car, which was air-conditioned.
Lerante frowned in confusion and didn't ask any further.
Franklin sat down across from Lerant with a heavy butt, and said to the waiter in a rough voice, "Coffee, no sugar, no milk!" β
Lerante frowned again, this is not Franklin's habit, Franklin likes to add milk when he drinks coffee, could it be that Franklin's preferences have changed in the past few days.
Lelander knew that Fannie Mae was in the same troubled situation as his own company, but it wasn't going to make Franklin change so much.
And before, when Franklin asked himself out for a coffee, his tone was still normal.
Soon, the waiter brought Franklin a cup of coffee.
Franklin picked up the coffee spoon and began to stir it, the spoon and the coffee cup collided with each other, making a very crisp sound, in this quiet cafΓ©, it was very noisy, and the other guests cast questioning looks.
"Mr. Franklin, are you alright?" Lerante asked with concern.
"Oh, it's okay!" Franklin picked up his cup and gulped it down.
Now, not only the other guests were dumbfounded, but even Lerante was dumbfounded.
βWITERοΌ One more drink! Franklin shouted at the waiter again.
The waiter gave Franklin a deep look, and silently served him a cup of coffee.
At this moment, Franklin felt those eyes disappear, not behind him, staring at him all the time.
Franklin's frenzied mood calmed down and returned to normal.
"Mr. Lerant, what do you think of the market prospects for a financial product like MBS?" Franklin gets straight to the point and asks Lerante directly.
"It depends on the country's economic form, if the economic form is good, under the expected effect, the market prospects of MBS are certainly considerable. It's just a pig, if you stand in the wind, you will fly! β
Lerante slowly stirred the coffee with a spoon and continued. "If the economy is in a downturn, the market for MBS will be the first to collapse because it is itself a secondary financial product!"
Apparently, Lerante has admitted that the company has run into a crisis, and if the number of credit defaults continues to rise, Fannie Mae and Freddie Mac will be the naked swimmers after the tide recedes.
"Do we need to talk to Harden from the Fed?" Franklin tentatively asks Leland.
Franklin's meaning is very obvious, he is going to ask the government for help, after Franklin was rejected by John Morgan, he knew that his company would not be run by other financial institutions, Citibank, Bank of America, these big investment banks will not invest a penny in him, they are the embodiment of vampires, not Robin Hood!
He now tentatively asks Lerant that the chances of success would be higher if both companies sought government assistance at the same time.
Lerant didn't say anything, he just stared out the window in silence. At this time, the sky outside the window is even more gloomy, and the wind is also rising, as if it is going to rain a torrential rain, and the Atlantic currents are unpredictable, which actually affects the weather here.
Franklin didn't squeak either, just stared at Lerant, and the atmosphere suddenly fell silent.
Halfway through, Leland nodded and said to Franklin, "Why don't we go and visit Mr. Harden directly!" β
Lerant made up his mind with great difficulty and decided to go to Mr. Harden of the Federal Reserve, which is a very hidden matter, and if it is known by the press, it will cause a shock in the financial world. And their company's stock price will fall at an accelerated rate. Because, there is reason to suspect that Franklin and Lerant went to Mr. Harden of the Mi Fed in conjunction with each other, and they must be looking for government assistance, hoping that the government can step in and provide sufficient liquidity.
This incident shows even more that there will be big problems in the business conditions of Fannie Mae and Freddie Mac. The money in the market will accelerate the shorting of the shares of these two companies, and their stock prices will fall sharply.
This, in turn, will affect the Fed's decision-making, and the Fed will seriously consider whether it is necessary to provide them with sufficient liquidity after the stock price of these two companies has plummeted.
The Fed's hesitation will increase investors' suspicions, and they will sell off their shares in these two companies, so that Fannie Mae and Freddie Mac will fall into a vicious circle, and their situation will become more and more difficult.
Franklin was also taken aback when he saw Lerant's suggestion to visit Mr. Harden of the Mi Fed directly. He guessed that Freddie Mac, like his Fannie Mae, was on the verge of collapse, otherwise Leland would not have taken this risky move.
Franklin thought about it, and Lerant's suggestion, while very dangerous, was the most effective and straightforward method at the moment.
It's all in one battle!
When John Morgan hung up Franklin's phone, he walked to the front with a cigar in his mouth and lost in thought.
Outside the window, it had been a beautiful day, but now it suddenly became gloomy, and the monsoon wind of the Atlantic Ocean had blown the rain through again. Franklin tried to get JP Morgan Chase Bank to take over MBS financial products, but John Morgan politely refused.
Now that the tuyere has changed, MBS financial products are no longer on the tuyere, defaulters have increased, and investors have also been liquidated.
If a pig is not in the wind, it is still a pig, and it can't fly!
With the investment philosophy of the Morgan family, they will never invest in a pig that is not in the limelight!
John Morgan didn't care about Franklin, but he did care about the source of the short-selling money that the investment department had vaguely mentioned in Fannie Mae's analysis of the company.
Judging from the report, these funds began to short Fannie Mae and Freddie Mac at the beginning of the crisis, and judging from the stock movements of these two companies, these short funds have already made a lot of money. If the two companies' management problems are superficial, and it is a heavy blow to the stock price, then these short sellers will gain a lot of money.
I can't imagine that these funds have such a keen sense of smell, and they are even more bullish than the research analysts of JP Morgan Chase Bank, you must know that these research analysts of JP Morgan Chase Bank are world-class.