While Lehman continued to struggle, the problems of Fannie Mae and Freddie Mac in the United States also began to gradually come to light. It should be said that these two companies are of very important significance in the American real estate industry: Fannie Mae was founded in 1938, 10 years ago.
It has a history of 70 years. At that time, it coincided with the Great Depression, all industries were in decline, and at least 20% of the people in the United States were unable to pay their mortgages. Therefore, in order to save the U.S. economy, the then President Ronaldo urged Congress to create Fannie Mae.
The largest "U.S. government-sponsored enterprise" at the time actually functioned as a government agency designed to provide federal funds to local banks to expand home loan business and stimulate the real estate market.
As time goes by, the positive meaning of Fannie Mae is gradually replaced by the negative meaning. After the crisis, the government changed Fannie Mae from a government institution to a private institution, but its power was not reduced but expanded, and it was approved to operate without government approval.
Real estate loans. It was this kind of power that made the capital behind Fannie Mae only focus on profits and gradually ignore risks. Later, the US government discovered that Fannie Mae's "power" was too great, and some of it was too big to lose. I thought: Grandma, we are giving this to
You have created a big boss yourself. What should you do? Suppression won’t work, the capitalists behind Fannie Mae are tough. It’s even more impossible to get rid of Fannie Mae. Fannie Mae’s role in the American real estate market has become irreplaceable.
It's easy to cause trouble. These problems can't trouble the government elites. They thought that if they have a boss, they might as well have a second boss. So in 1970, the second largest government-sponsored company in the United States, "Freddie Mac", was established.
Dime's business is almost the same as Fannie Mae's, and the value of its existence is to break the dominance of Fannie Mae.
For decades, the two companies have provided liquidity, stability and purchasing power to the housing market, fulfilling the housing dreams of many Americans. Their 30-year fixed-interest mortgage loan policy is not only unique in the United States, but also popular among home buyers.
Welcome. Fannie Mae and Freddie Mac are the main sources of financing for residential mortgage loans in the United States. The total residential mortgage loans they hold or guarantee are approximately 5.3 trillion yuan, accounting for almost half of the total residential mortgage loans in the United States.
However, success is a failure. Affected by the bursting of the bubble in the U.S. real estate market and the subprime mortgage crisis, Fannie Mae and Freddie Mac were the first to fall into a comprehensive crisis. The funniest thing is that in July, Freddie Mac also released a report on its financial situation.
A good statement, but I didn’t expect to be slapped in the face so quickly.
At this time, the situation faced by the U.S. government in dealing with the "two housing problems" was as follows: banks lent money to individuals who did not have much income or had poor credit records. When housing prices rose, due to the sufficient value of the collateral, the loans could not be
Problems will arise; when house prices fall, the value of the collateral is insufficient, and the mortgage buyers are unable to repay the loan, the bank will repossess the house. In the absence of strong buyers, Fannie and Freddie purchased 81% of the mortgage bonds.
.These bonds were originally held by other banks. When it was discovered that house prices were too high and there were no buyers, they were sold and fell into the hands of the government-led "Family Fannie and Freddie".
This itself is a hole dug by the government for Fannie and Freddie. If the government saves Fannie and Freddie, the government can only inject capital to buy mortgage bonds. However, the US government has no say. The Federal Reserve does not issue new bonds, only the Ministry of Finance. So, in the end,
It is still necessary to "sell the house", but the house price is too high and no one will buy it. The only way is for the US government to "go bankrupt". Therefore, if the US government saves "Front and Freddie" and the US government goes bankrupt, it will be the people who will suffer the "loss" in the end.
, the house is gone, and you still have to bear the worst credit record of default and dishonesty.
Not only that, the problem of "Front and Freddie" will also affect many countries in the world, even China and Russia, which also have a large amount of investment involved. Therefore, the problem of Fannie and Freddie is not just a problem for the United States. If it is not handled carefully, it will have an impact.
A big explosion in the world structure. After some calculations, it was initially estimated that 75 billion yuan would be needed to save the "Fanny and Fannie Mae". After that, under the leadership of the US government, the US Treasury Department and the Federal Reserve Bank of America launched a plan to target Fannie Mae.
and Freddie Mac's rescue package, including increasing the credit line of "Frontier and Freddie", allowing the government to purchase their stocks when necessary, and injecting short-term funds. In addition, the Treasury also suggested that the Fed should
The funding needs increase the credit guarantee.
Entering August, all parties still failed to reach an agreement on the rescue plan for Fannie Mae and Freddie Mac. The U.S. Treasury Department had to announce that it had no plans to inject capital into the two major housing mortgage financing institutions, Fannie Mae and Freddie Mac.
The Federal Reserve Bank of America even came out to criticize the U.S. government’s rescue plan for Freddie Mac and Freddie Mac as a “bad decision.” It believed that the problems of Fannie Mae and Freddie Mac had “burned into the spinal cord” and the best solution for the government was
The plan is to split the two companies and conduct an auction instead of using taxpayers' money to pay for the losses of Fannie and Freddie. This will not only harm the interests of taxpayers, but also violate the laws of the market.
However, just a few days before Bai Shuo and Liang Ying returned to the United States, the policy direction of the United States suddenly changed, and news came out in the market that the American government was preparing to inject funds into Fannie and Freddie, and then the government would take over the two companies. Everything changed again
It must be confusing.
After listening to this information, Liang Ying asked Liu Shu: "What do you think the American government will ultimately choose?"
Liu Shu thought about it and replied: "Although this news has not been officially confirmed, I think it is not groundless, because it is generally believed that the US government, as the backstage of Fannie and Freddie, cannot sit idly by and ignore the crisis of Fannie and Freddie.
This is not only out of consideration for the U.S. economy, but also out of consideration for social stability and restoring public confidence."
Although Bai Shuo was not necessarily completely familiar with the ending of Liangfang in his memory, he still had some general understanding, so he said: "Haha, I also think this news is true, too big to fail, such a company
, the United States will not let it fall under any circumstances. But I don’t know what method it will adopt in the end. I believe that in the end the United States will attract more people to pay for it."
"You mean, let all the countries in the world pay for the two houses?" Liang Ying said fiercely.
"I think I will bear some part of it."
Liu Shu said at this time: "In any case, I am relieved that you are back. I feel like I am walking on thin ice every day these days. It is up to you to make an idea about what we should do next. Do we need to take this opportunity to buy something?"
Inject some high-quality assets into our investment company?"
"You want to let go of your burden, but it's not time to rest yet." Liang Ying said angrily.
Bai Shuo smiled and said: "Don't worry, you have food in your hands and don't panic. The big show is on, let's watch the show first."
"Watching a show? When?"
"Didn't I say before that we will wait until the top five investment banks go bankrupt?"
Liang Ying and Liu Shu were both very surprised: "Bear Stearns has overcome the crisis. You mean Lehman Brothers! Will Lehman go bankrupt?"
Bai Shuo grinned: "Liangfang must be saved, but Lehman is not necessarily rescued."
Liang Ying thought deeply: "Didn't you say it was too big to fail? Although Lehman is nothing compared to two-bedroom apartments, it is still quite big."
Before anyone else could speak, Liang Ying added: "Now it seems that the United States is still trying its best to save Lehman. Will it really let it fall? If Lehman falls, it will be very scary."
Bai Shuo: "I have always saved him before, but now I am no longer sure."
Liu Shu asked in surprise: "Why?" Liu Shu has been paying attention to how the US government quietly supports Lehman these days. It took a lot of effort to obtain many internal information. He still does not believe that the United States will give up on Lehman.
Man.
Bai Shuo didn't speak, but just glanced at Liang Ying. Liang Ying suddenly thought of something and said excitedly: "Yes, now that we have two houses, there may be more problems that need to be solved in the future, and the United States can no longer save them.
Already."
Liu Shu also suddenly realized it, and looked at Bai Shuo and Liang Ying with lingering fear. In the crisis that everyone was avoiding, they were extremely excited about this savage beast. The so-called trend-setters were like them.
Liu Shu suddenly thought of another thing: "By the way, insiders at the Bank of America told me that they have been conducting financial calculations on the rescue of Lehman these days. Apparently the Bank of America and Barclays are preparing to accept Lehman's funds."
The matter is real and is still progressing."
Bai Shuo frowned. Although he knew in his memory that Lehman Brothers was indeed bankrupt, in such a changing situation, any slight change could change other people's decisions. He was not sure what the final result would be.
"How about we release the news that Lehman is going bankrupt. If it causes panic and makes the acquisition more difficult, maybe Bank of America and Barclays will give up." Liang Ying said bitterly.
Bai Shuo supported his chin with his hand and stomped around the hall of the villa, walking back and forth several times. "No, we still watch the show and don't intervene too early." Although Bai Shuo was not sure about the method Liang Ying said,
Is there any use, but he obviously doesn't want to stand up so early. If Lehman becomes the target of public criticism too early, it may stimulate the US government to save Lehman first, and then his overall plan will be really disrupted.
"By the way, do you have any news about how the Bank of America plans to take over Lehman?" Bai Shuo asked Liu Shu again.
Liu Shu thought for a while and said: "Well, I heard that the acquisition seemed to be carried out with the support of the US government. They seemed to be planning to let the US government increase the leverage of the Bank of America in order to acquire Lehman."
Liang Ying thought for a while and suddenly said: "If Bank of America has this idea, then the acquisition plan here will probably not succeed."
Bai Shuo and Liu Shu looked at Liang Ying in bewilderment. Liang Ying explained: "Isn't it funny to increase the leverage ratio of Bank of America and let him acquire another bank that is facing bankruptcy due to excessive leverage ratio?"
Bai Shuo thought it made sense and smiled. Suddenly the phone rang, and Bai Shuo saw that it was Xiao Zhen calling.
"Hey, Brother Zhen, if you are not busy with post-disaster reconstruction, you have time to care about me."
"Did your kid go to the United States?" Xiao Zhen asked.
"Yeah, I thought you were busy, so I didn't tell you."
Xiao Zhen said angrily: "Boy, you have forgotten the agreement you made before. You must inform me of every move you make."
"Hey, Brother Zhen, how could you forget this? If you have any instructions, just tell me."
Xiao Zhen thought for a while and asked mysteriously on the phone: "Is there a war about to start over there?"
Bai Shuo was stunned for a moment, and then said seriously: "Well, yes."
"How big is it? Is it short of funds?"
When he heard that Xiao Zhen seemed to want to give money, Bai Shuo immediately became excited: "This battle is the boss. I guarantee it is a battle you have never seen before. In terms of funds, it is even more lacking."
"How much is missing?"
Bai Shuo sighed: "I am a soldier of Han Dynasty this time. The more the better. No matter how much money there is, there will be room for it. But I have already invested all my wealth."
Then Xiao Zhen asked about some more information, and finally told Bai Shuo that the Xiao Group was ready to participate in this financial fight. As for the specific operations, he had already convinced the family members and was preparing to temporarily hand over the family's investment company and investment funds to full authority.
Let Bai Shuo and the others operate and help Bai Shuo win this battle. As for the final profit, Bai Shuo's team will withdraw 50%.
After receiving this news, Bai Shuo was surprised and happy. What was surprising was that Xiao Zhen actually convinced the Xiao family to give him full authority to handle such an important matter. This trust was not unimportant. What was surprising was that,
With the new force of Xiao Group joining, Bai Shuo's financial strength and influence will be greatly improved, which will play a great role in establishing the final victory.
"How's it going, boy, do you dare to take this job?" Xiao Zhen asked on the other side of the phone.
Bai Shuo responded: "Dare! Why don't you dare? Brother Zhen, this is the icing on the cake. I will also give you a guarantee here. If you make a profit, you will share the profits equally. If you lose, I will also guarantee 50%."
"Okay, just go ahead and do it. Don't put too much pressure on it."
After another discussion, Xiao Zhen hung up the phone. Liang Ying also roughly understood what was going on at the side. After hanging up the phone, she immediately asked: "How's it going? How much ammunition did Brother Zhen send to us?
Bai Shuo smiled: "About 3 billion yuan."
Liang Ying immediately clicked her tongue and couldn't help but sigh that the background of the Xiao Zhen family is really not simple. Under the current circumstances, there are really not many people who can generate a cash flow of 3 billion yuan, even in Hong Kong Island.
The Liang family may not necessarily have such strength at present. Bai Shuo suggested that a group of elite personnel be selected from the Xiaozhen family business to temporarily form a trading team as a branch of this operation. As for the command of this team
The specific operations of these funds will be left to Zhong Pengcheng.
After the discussions and arrangements were made, Bai Shuo felt a little sleepy. Although there were still some things that were not completely settled, he stretched and said, "Hey, okay, let's forget about the rest of the mess for now. I'll go
Take a nap to get over the jet lag."
Liang Ying also felt a little sleepy at this time: "Well... okay, I'll go take a nap too, let's go together."
Bai Shuo suddenly trembled all over and cursed: "What a waste of time, you sleep with yours and I sleep with mine."?