In the afternoon when Fang Zhuo arrived in Washington, it started to drizzle.
New York is very close to Washington, so the takeoff and landing of the private plane didn't take much time. Instead, there was a slight delay from the airport to the hotel.
Along the way, Kong Yu, who came to pick him up, first talked about his observations of the European financial market, then the situation of Yike stock, and finally his participation in the disposal of toxic assets.
Geithner has been working hard for the country since the outbreak of the financial crisis, and the disposal of toxic assets has been an outline since he was president of the New York Fed.
Now, except that the details are clearer, the main plan has not changed much.
It still takes 100 billion from the 700 billion that Xiaobian passed in the bailout bill last year. It will use 100 billion as official funds to bear 6% of the overall investment. The remaining 84% of the cost will be borne by the Federal Reserve Insurance Company, and the rest will be borne by private capital.
The amount of investment will be borne.
There are advantages for large quantities, and private capital only needs to bear a minimum of 6% including loan costs.
In other words, if the winning bid price for a toxic asset worth US$20 million is US$10 million, private capital can acquire it with a minimum of US$600,000.
If this toxic asset still has an actual value of 20 million US dollars, the profit margin is 10 million, and private capital and administration will split it in half and take 5 million of it.
That is, an investment of 600,000 yuan resulted in a final profit of 4.4 million yuan.
This profit-making process requires bearing the risk of the toxicity of toxic assets, and this disposal plan is called a public-private partnership investment plan, or PPIP for short.
"Hey, I remember the last time I heard about this disposal, the proportion of investment required was US$750,000. Now it's lower?" Fang Zhuo was quite surprised.
"The first batch should be like this. I don't know if there will be changes in the future. They will be disposed of in batches." Kong Yu has been in Washington for a week. "When the plan is officially announced, the first step is to shortlist asset management companies.
, it is initially estimated that there will be more than a hundred competitors, and in the end only about 10 will become partners of asset management companies."
PPIP establishes an asset management company to deal with toxic assets, and then reaches cooperation with private capital through this company.
Fang Zhuo asked: "Are there any problems with being shortlisted?"
"It's a green light." Kong Yu replied.
Later, he added: "The name of the new company we are establishing now is Financial Industry Investment Management Company. The MIGA fund is nested in two layers, with companies recommended from there as shareholders."
Fang Zhuo nodded, as the procedure should have.
I'm here to help this time. It all depends on the owner's wishes. I won't have any objection.
Kong Yu added: "Roughly speaking, we can get 30% of the profit."
In other words, after investing 600,000 yuan, the profit transferred is 1.32 million yuan.
Fang Zhuo frowned and suggested: "It's a little small, is that what Geithner meant?"
Kong Yu shook his head: "I didn't see Geithner. It was the result of my communication with shareholder Jack."
Fang Zhuo asked again: "This Jack?"
"I checked, and my identity is very transparent. I have worked in investment banks such as Goldman Sachs," Kong Yu replied.
"I met with Geithner that night and asked him again. After all, we took risks," Fang Zhuo said.
Kong Yu will talk about this risk next.
He opened his mouth and waited for two seconds before continuing: "The first batch of shortlisted companies can first select some undervalued high-quality assets to combine, and a large part of the assets will be mixed together for blind auction, and the one with the highest price will get it.
"
Fang Zhuo listened quietly.
Kong Yu said tactfully: "In principle, it's a blind shoot."
Fang Zhuo waited for a while: "Yeah."
Blind shooting is not blind, it is indeed very simple and crude.
Then there may be a competition issue now. How many companies share the same principles?
Being shortlisted is a threshold, the principle is a threshold, and the one with the highest price is also a threshold.
"In principle, we need to prepare US$500 million, with the highest priority being real estate collateralized debt obligations (CDOs) in good locations. With the stimulus measures in place, these can bring more profits than planned," Kong Yu said, "Secondly,
, some credit cards and corporate business loans are also good.”
Fang Zhuo nodded, there is no problem.
Kong Yu continued to talk about less critical content such as Federal Deposit Insurance Corporation loans and term asset-backed securities loan facilities.
The disposal of toxic assets can be complex or simple.
This time, the MIGA fund is also fully compliant with the procedures and is even welcome to participate. The use of company vests is out of safety habits.
"Is there anything we need to pay attention to here in Washington?" Fang Zhuo was reassured by Kong Yu, who continued to operate, and asked about the local situation.
"There seems to be something that needs special attention. Geithner is a big shot now." Kong Yu thought for a while, "I don't know who else will be there tonight."
Fang Zhuo is the host tonight, but Geithner is actually arranging the guests and presiding over the scene.
From the New York Fed to the Treasury Department, Geithner is now in hot demand as he determines how to handle the recovery from the financial crisis.
Fang Zhuo sighed: "Yes, they are all big shots."
Geithner...are already big figures attracting global attention.
At seven o'clock in the evening, a private banquet was held at the Fairfax Hotel, which was luxurious and elegant with the elegance of the American Golden Age.
Fang Zhuo had already arrived early, but Geithner did not expect to arrive earlier.
Although it was said to be a small banquet, Geithner actually invited quite a few guests, nearly twenty of whom were well-known in their respective fields.
However, when Fangzhuo arrived at the banquet hall, many people surrounding Geithner consciously made way for the world's richest man.
"President Fang, did Yike run into some trouble?" Geithner mentioned Yike's matter after a brief greeting.
"Small problem." Fang Zhuo said concisely and to the point.
Geithner is no longer what he used to be. He asked with concern: "Do I need to find someone to coordinate?"
Fang Zhuo frowned and quickly considered the overall situation in his mind. From the current point of view, Nokia's attitude towards attacking the trump card of the Android camp is still very determined. This is also related to the open source of the Android system.
President Geithner pondered, waited patiently for a while and then suddenly said: "If you really need it, you can tell me again."
Fang Zhuo glanced at Geithner and said, well, this guy seems to have a sense of smell.
"I'm definitely not as good as the second best president in the world when it comes to business matters. Come on, Mr. Fang, let me introduce to you. This is Jack from Xianlian Asset Management, and he is also an outstanding financial elite." Geithner smiled.
Introduce the people next to you to Mr. Fang.
This is Jack, who represents Geithner in partnership with the MIGA Fund.
Fang Zhuo shook hands with this man and exchanged business cards and numbers.
"President Fang, this is Tony, the vice president of CGI Group." Geithner blinked, "He is also Michelle's good friend."
Tony shook hands with the rich man with a smile on his face and introduced himself: "Mr. Fang, our CGI Group is an independent information technology and business process service company with excellent technical capabilities. We have many cooperation projects with the government in Canada. I hope we can cooperate with Yi
There will be a day when we can cooperate with each other in the future."
He introduced another label on himself in detail: "Michelle and I were classmates at Princeton University, and I am very proud of their achievements today."
Fang Zhuo was a little surprised by this person's straightforwardness and also changed his business card and number.
Kong Yu, who was standing next to him, took advantage of the opportunity to get a drink and simply explained his boss’s doubts: “It’s almost an outsourcing company. It’s not well-known in the United States. It came to the United States at the end of last year to increase its activities.”
As for why it was at the end of last year, it was naturally because of the label on Tony.
"Oh, outsourcing company." Fang Zhuo understood.
Kong Yu reminded: "It seems that the relationship with Michelle is indeed very good. The goal Tony mentioned is the future medical reform website project."
Fang Zhuo's simple exchange ended here.
He held the wine glass and looked at Tony with a smile on his face. He knew that the big shot was surrounded by people who were ready to share the meat, but the goal of an unknown outsourcing company was quite big. Can it be done?
Fang Zhuo communicated with the people Geithner introduced to him with great interest.
In addition to Jack and Tony, there are also executives from banks and insurance companies, who can provide loans to asset companies.
Geithner was originally from the Federal Reserve, so he naturally knows the banking and insurance fields.
Fang Zhuo kept listening and gained a lot of business introductions.
This group of people is also very interested in the businesses of the world's richest people, including the MIGA fund, which has not opened up channels for a long time. It has also received inquiries.
Fang Zhuo's listening scope gradually expanded, and he almost chatted with Xiaoyan's connections and powerful people before continuing to communicate with Geithner.
"Jack was from Goldman Sachs before?" He picked someone close to Geithner as his starting point.
As soon as Jack answered, Geithner spoke for him: "It's just a job resume."
"Is he professional? We are very interested in the European market recently." Fang Zhuo asked again.
Geithner pondered, the transaction of the MIGA fund had been clear to him for a long time, and now the meaning of his words was self-evident.
This time, Jack took the initiative to defend his professionalism: "Mr. Fang, please believe in my professional ability."
Fang Zhuo's eyes turned stern when he looked at Jack.
Jack had not felt anything wrong with his previous contact with Kong Yu from the MIGA Fund, but now he suddenly felt very stressed when facing the eyes of the oriental man in front of him.
Geithner waved his hand, motioning for Jack to go to the other side.
"Mr. Kong's fund is professional enough. Whether it is making money or disposing of assets, we have to believe in Mr. Kong's ability." Fang Zhuo's eyes softened and he continued, "The fund only accounts for 30% of the shares in asset disposal. Mr. Kong can't take it.
Without sufficient dominance, this is not conducive to the subsequent asset disposal process."
"After all, this is not just about calling out numbers. A series of things need to be arranged for people to do. Mr. Kong has always had no problems. I don't want him to encounter constraints."
Geithner shook his head first, then nodded and said: "MIGA Fund is indeed very professional."
As an important client of the fund, he has a deep understanding of this.
He thought for a while and made a suggestion: "The performance of the first batch of asset disposals is very important. Since Mr. Kong is professional enough, it is no problem for him to lead the asset disposal. However, professional people should also assume more responsibilities.
"
Fang Zhuo understood. The original capital threshold was that the first batch of people should spend 500 million US dollars to participate in the disposal. Now that they have to bear more responsibilities, they have to spend more money. The total amount has increased, and the balance is that the other party finally gets the money.
of.
He nodded slightly and agreed: "The greater the ability, the greater the responsibility."
Fang Zhuo calculated in his mind, and then negotiated: "MIGA Fund holds 70% of the shares, and we are the first group willing to spend US$1 billion to participate in PPIP."
Geithner did not agree to such a big concession: "60%, the financial industry investment management company can continue to retain, Jack has experience working in Europe."
Fang Zhuo shook his head: "This industrial investment company will not appear in Europe. That is another way of playing it."
The industrial investment companies currently held by MIGA funds are entirely funded by MIGA, and Jack does not provide funds. It is impossible to obtain Europe through such a mechanism.
He continued: "Europe is a client that the fund trusts very much."
The client of the fund is Geithner personally, regardless of a series of people including Jack.
Geithner made another concession: "Sixty-five percent."
Fang Zhuo agreed.
He stretched out his right hand and said: "Geithner, you are really careless, but it is because of your carelessness that the toxic assets can be properly handled this time."
Geithner accepted the praise.
He called Jack again and gave simple instructions. The ownership had changed. MIGA Fund would increase its shareholding and share ratio, but the overall profit would remain unchanged.
And, clients of MIGA funds will continue to make gains in the European market.
Jack felt that he had been roughly interfered with, but he had no problem with this roughness. A simple exchange between the big shots would determine the outcome, and they would always have more long-term interests.
He politely shook hands with Mr. Fang again, accepted the new arrangement, and stated that he would provide professional capabilities.
Fang Zhuo was very satisfied with this kind of division.
He signaled Kong Yu and Jack to communicate more and work together for the responsibilities they shoulder.
Fang Zhuo only chatted with Geithner about the disposal of the first batch of assets. After that, he still assumed the role of listening, but he heard a lot of complaints from big shots.
Like Michelle's classmate, Geithner was quite critical of the company he worked for. A health reform website system boasted a budget of US$1 billion.
This is simply a robbery.
"Hasn't the medical reform started yet? You should bid first and then bargain." Fang Zhuo said with a smile, "If you can't make a website and system, you can leave it to my company. My Huaxia company is very good in the medical field.
Professional, a large part of the business is in the hospital system.”
Geithner and Mr. Fang clinked their red wine glasses and said angrily, "Are you Michelle's classmate too?"
Fang Zhuo was stunned for a moment and laughed out loud.
He took a sip of wine and shook his head: "It's a purely sports friendship. I plan to invite Xiao Ao to watch the game this time."
"Then I'm afraid he doesn't have time," Geithner said. "This period is too busy, and many places are very chaotic."
"Yes, we can only wait for the opportunity." Fang Zhuo understood very well and sighed again, "The greater the ability, the greater the responsibility."
Golfers in the past now have to worry about their public image during this period, so if not, they should just play golf.
The greater the responsibility, the more attention must be paid to the balance between work and rest.
This chapter has been completed!