Chapter 21: The Big Short (8)
"When the president learned about this, he called me anxiously to appease me, and at the same time hoped that we could deal with this problem as soon as possible, give an explanation to the market and depositors, and strive to maintain market stability. Contini smiled coldly, "Tonight, the United Group held an emergency press conference, if there is any other question that needs to be clarified by me, you can ask at that time, I will immediately go to the bank to investigate and find out, see how serious the problem is, and prepare for the reception in the evening, so I can only miss it." ”
Everyone in the venue stood up and applauded, and then saw off Contini, although it seemed rude for the important guests to leave the venue early, but no one cared about these - people are burning their eyebrows and don't let them go first? Didn't you see that the president took the initiative to call the scene, and the president would do this without an earth-shattering event?
Hoover never dreamed that the phone call he paid attention to and cared for would spread quickly, which in turn confirmed the seriousness of the situation, but could he accuse Contini of anything? No! Because he made the call himself, and pulled the president out of the venue, there must naturally be an explanation. As for the content of the phone call that Contini told in two words, in fact, it was not fabricated or exaggerated, but the sudden insertion of such a phone call after the speech "Destruction" was completely different for public opinion and the audience's perception and guidance.
Enzo drove Contini back unhurriedly, and the co-pilot was still sitting in Aquilani - this kid's wonderful performance today was completely worthy of his salary, and even Enzo, who was witnessing it, had to give him a hundred likes! It's no wonder that he can stand out from the masterful president's office as an administrative secretary, and he really can't do it without a little level.
Of course, the president's performance should also be given full marks, especially the momentum of throwing the cup to the ground at the end of the speech - domineering! The ceramic cup, which doesn't even cost $1, shook the audience directly with broken bones, and it can be regarded as a well-deserved death - politics is really too complicated, I'd better engage in security.
After Contini left, there was a lot of discussion in the venue, and then there was new news, the Dow Jones index fell directly by 1 point in the last 20 minutes - not a single stock fell a little, but the entire market was suppressed, and the trading volume was said to have been rapidly enlarged, and the trading volume in the last 20 minutes reached 1.4 million shares, which was more than 5 times the usual amount, and everyone couldn't figure out what was going on. I only saw that the originally very stable tick line on the stock price chart was smashed directly at the end of the session, and the closing price closed at the lowest point of the day.
In the evening, Hoover received a briefing, Contini said something at the meeting, he listened to it and felt that there was no difference with Contini's statement on the phone, so he put his mind at ease, he waited for tonight's press conference, as long as he showed a responsible attitude, he believed that this matter would not be difficult to suppress, as long as it was suppressed, there was a possibility that the big thing would be turned into a small thing, and the big deal was that the Federal Reserve and the United Group each played 50 big boards, anyway, he often did this kind of thing.
That evening, Union Bank held a special press conference, and because the number of people was so large, it finally chartered a nearby theater. Countless reporters flocked to the city, they heard the judgment about "destruction", heard the rumors that "Union Bank is extremely risky", witnessed the sudden tide of selling and flashing in the last 20 minutes of the day, heard the rumors that the president had called the president with their eager calls, and finally underwent strict security checks before entering the venue - the blackwater uniforms, expressionless security guards brought X-ray machines and told all the reporters to send their belongings for inspection, and then the venue was also full of security guards with guns, It can be called a post at five steps and a post at ten steps, and the security is much stricter than that of the president.
"Today's press conference will be preceded by a briefing by Alessandro, spokesman of the United Group......"
“…… Distinguished ladies and gentlemen, friends who have been concerned about and supported the development of the United Group and the United Bank, good evening, first allow me to state and explain the relevant situation and indicate the position of the Group, and then enter the free question time for the President, President Francisco and other professionals to answer your questions......"
On August 28, the Federal Reserve asked the United Bank about the gold exchanged in the previous year with the message of the official confirmation letter, and the group submitted a reply letter on September 1 after investigation and statistics: since last year, a total of more than 800 million US dollars worth of gold has been exchanged through the channel of the United Bank, together with the previous part of the reserves as a whole converted into nearly 1,400 tons, of which more than 400 tons were exchanged on behalf of customers, and the Union Bank itself increased its reserves by nearly 1,000 tons...... As we all know, the gold standard is the currency basis of European and American countries, including the United States, to support currency issuance, due to the rapid development of the Italian economy in recent years, the level of lira issuance has been rising, in order to better stabilize the price level and prevent currency abuse, Union Bank, as the largest bank in Italy, has the responsibility to show stability in this regard, which is the motive of Union Bank to exchange gold and transport it back to Italy, and Union Bank is a bank headquartered in Italy, so this batch of gold has been shipped back during the above period.
All the exchange, filing, and customs clearance procedures are complete and comply with the relevant laws and regulations of the United States, but the Federal Reserve has forcibly demanded that the United Bank be shipped back on the grounds of the outflow of gold, and interfered with the normal operation of enterprises with brutal power. ”
Everyone was shocked that 1,400 tons of gold were shipped from the United States? Everyone felt a little weird, but they couldn't say anything - this was someone's right.
The Fed was very dissatisfied with this reply, believing that Union Bank did not respect the Fed, and decided to retaliate for the second time, sending a verification team to Union Bank five days later to inspect all kinds of accounts and books...... After five days of inspection, the Federal Reserve again accused the Union Bank of deliberately evading funds, and demanded that the Union Bank forcibly confiscate and withdraw the loans issued to the United States...... In addition, the Fed failed to find any other problems, and ended the relevant spot check this afternoon, during which the Union Bank fully cooperated, did not conceal or deceive in the slightest, and fulfilled its obligation to abide by the law, but we cannot accept the Fed's interference, and this unreasonable demand that the funds absorbed in the United States must be put into the American market is also contrary to the essence of the free system, and if every country emphasizes that the funds must be used in its own country, then how can capital flow freely? If capital must be used for domestic use, must commodities also be used for domestic goods? Do shares also have to be issued in the home market? If you have to emphasize your own country, then why does the United Group still come to buy American products? ”
Alessandro lashed out indignantly: "Under the pretext of protecting the national interests of the United States and protecting the interests of American investors and depositors, the Fed is essentially a kind of crude interference relying on power, and the United Group will not accept such unreasonable demands." Annoyed by the group's reply, the Fed drafted a statement – a statement that had not yet been officially published, but the contents of which had been made known to friends in the press to the effect that: ...... If Union Bank does not comply, the Fed will issue an open market risk warning, requiring depositors and institutions to protect their own interests - in essence, it is leading the run, artificially creating a crisis, and trying to use public opinion pressure to force the United Group to bow down.
The essence of the reason is not that Union Bank has violated this or that norm in its operations, but in essence that a handful of Fed officials refuse to accept His Excellency the President's kind criticism of them, refuse to admit their mistakes in their work, refuse to reflect on their arrogance in policy-making, and only know how to use power to trample on the market, stifle freedom of speech, stifle freedom of business, and make enemies of law-abiding entrepreneurs. This is what we firmly oppose. ”
Alessandro's speech threw itself into the crowd like a bombshell: have they been impatient to see the companies that have called out to the president, but have not seen the banks that have called out to the Federal Reserve?
A reporter in the audience pouted: "It's not the first time that the Federal Reserve has slapped the Federal Reserve in the face, the last time the Federal Reserve guided the interest rate to 20%, and the five major banks including the United Bank collectively lent 100 million yuan at an interest rate lower than the guideline, have you forgotten?" ”
"Yes, yes, I remember."
"At that time, the Fed was extremely dissatisfied, and it was Citibank and others who took over the matter, and later the president scolded some Fed officials for being stupid......
"Yes, yes...... And then the Fed is going to fight back? ”
"They found the wrong target, is it so easy to slap the president in the face? The president arrived in the United States in March, and now it is mid-September and has not left, and the warships of the Italian Navy have changed one after another, have you ever seen an entrepreneur who can command the navy and control the fleet? Have you ever seen Morgan or Rockefeller casually call in a battleship to visit Europe? If you look at the president's bodyguards and the Union Bank's security guards...... someone pointed to the guards around them, "it's higher than the president's security level, right?" ”
"That's right! That's right! The president, of course, cannot be measured by common sense. Everyone nodded again: even the president of the United States didn't dare to say that he would casually let a warship be transferred around, but the Italian Navy was so strange - the Italian Royal Navy sneered, what do you know, the warships are all sponsored by the president, and even the expenses for running around, labor salaries and even travel allowances are issued by the president, and everyone has additional benefits when they go to the United States, whoever doesn't go is stupid, and everyone rushes to go to the United States!
"The above is the general situation, and the following is the public statement and relevant measures of the United Group on this matter." Alessandro glanced at the venue, and the venue, which had been a little commotion just now, immediately fell silent......