But the chain reaction doesn't end there. That night, the US Securities Regulatory Commission also issued a stern warning to some securities trading companies with loopholes to put an end to illegal transactions. At the same time, what was even more severe was that on Wednesday, the US Securities Regulatory Commission issued a ban on naked short selling.
Announcement. As soon as this announcement came out, Bai Shuo and everyone were very surprised. Because they had such a large amount of funds and such high leverage for short selling, there must be a lot of naked short transactions, otherwise there would be so many stocks for them to sell.
Liang Ying, who was keenly aware of the problem, suggested that all short positions in the U.S. stock market be closed immediately, and Bai Shuo immediately agreed.
At the close of trading on Thursday, the U.S. Securities Regulatory Commission once again issued an even more shocking announcement: it decided to stop short selling of 797 financial stocks for 10 days. At the same time, all institutional investors must report their short selling positions (number) every day, and
Behaviors that manipulate the market will be severely investigated and punished. This decision of the China Securities Regulatory Commission has played a very effective role in curbing the decline of the stock market. When the market opened on Friday, the U.S. stock market stopped its downward trend and gradually began to bottom out. Bai Shuo At this time
I feel very lucky that in the past two days, all my short positions have been closed, otherwise this announcement will definitely bring huge losses to me.
But the crisis is far from over. Just after the bankruptcy crisis of AIG, problems appeared in the credit market again. The credit market was completely frozen, and even people with good credit could not get loans. Banks stopped lending because they were worried that they would not be able to collect their money.
Eventually, the crisis began to affect a large number of real companies. General Electric, the world's largest company, also encountered difficulties in capital turnover due to difficulties in investment banks.
The boss of General Electric told "Lao Cai" bluntly on the phone that if even a healthy company cannot do business due to the credit freeze, then there will be no need to do business in the United States. At this time, the two companies that cannot lend money
The leading investment banks are Goldman Sachs and Morgan Stanley, the only remaining eldest and second among the five major investment banks on Wall Street. It is not that they refuse to lend to others, but if they continue to lend money, Goldman Sachs and Morgan Stanley will also
It will fall into a liquidity crisis, and the final outcome will be bankruptcy.
At this time, "Lao Cai" finally fully realized the magnitude of this disaster, which was the most terrifying financial panic he had ever seen. Lao Cai knew that he had no way out, and he must go all out, even in the face of infamy.
We need to ask the government to directly intervene in the market again.
Although Bai Shuo ended the U.S. market, he continued to reap gains in other stock markets around the world, and countries around the world were not stupid. Seeing that the ban on short selling in the United States was so effective, they also began to follow suit, which can be used by Bai Shuo.
They had less and less room to operate. William was frustrated by the short-selling ban and saw that he could not make a large amount of money.
Liu Shu felt regretful at the same time: the short-selling bans of various countries hindered the market's discovery of prices, delayed the release of crisis energy, and did not play a role in supporting prices. Although the United States' implementation of the ban seemed to have good effects, other countries
The effects vary from good to bad. Liu Shu even thinks that the stock markets in some countries will fall deeper because of the short-selling ban.
Bai Shuo patted William's back comfortingly. "It's time to stop and prepare for the next phase of action. How much have we earned so far?"
William quickly counted the status of each account. You must know that this round of battles from August to now, plus Zhong Pengcheng's side, as well as Huaying Investment Company and other institutions, it doesn't matter that Marshal Bai Shuo is commanding thousands of troops.
However, there are nearly ten institutions involved, nearly a hundred trading accounts of various types, thirty or forty traders directly involved, and the total funds used exceed tens of billions of dollars. Of course, according to Kevin's design
, the entire system, Bai Shuo's side has the highest authority and can operate all accounts, followed by Zhong Pengcheng's. After a while, William completed the preliminary statistics. William told everyone with a face of disbelief: "This war
After that, a total of more than 80 billion yuan was earned." Of course, this was entirely the result of Bai Shuo's desperate efforts to increase leverage and exploit loopholes to operate illegally. This time, according to the profit sharing, not only Bai Shuo, but also Liang Yinghe participated
Everyone in the team, including Huaying Group, Shengshi Huazhang, Xiao Zhen’s family investment company, Cao An’s media company, and Siam’s two companies will all receive generous returns. These funds will ensure that these companies will emerge suddenly in this weak economy.
, invincible.
While the government was carrying out its work, Morgan Stanley and Goldman Sachs also began to save themselves. Morgan Stanley received 9 billion yuan in financing from Mitsubishi Corporation of Japan. Originally, the financing was to be through the stock market, but the situation was too urgent. Morgan
Stanley was already on the verge of bankruptcy and couldn't wait for the stock market to open. Mitsubishi directly wrote a huge check of 9 billion yuan, saving Morgan Stanley's life. After repeated help, Goldman Sachs obtained an extraordinary loan.
Bart's 5 billion yuan in financing. This series of actions allowed Morgan Stanley and Goldman Sachs to breathe a sigh of relief.
But people's panic has not gone away. People have begun to doubt banks. Investors are afraid that banks will collapse. Three of the five major investment banks have collapsed, and the remaining two are crumbling. Therefore, investors have begun to withdraw their capital and get their money back from the banks. Not only Goldman Sachs
Morgan Stanley and Morgan Stanley are facing this problem, and all other commercial banks are facing runs. The stock price of Midland Bank has fallen again and again. Both Standard & Poor's and Moody's have released news that they will lower the debt rating of Midland Bank. The day the news was announced
, Midland Bank suffered a run of 5 billion yuan. If the situation continues, people will really go to the bank to withdraw money, causing the bank to go bankrupt. After withdrawing the money, people are worried that the money in their hands will depreciate, and another incident will occur.
If there is a panic buying frenzy, not only the financial system of the United States will be paralyzed, but the entire United States will be plunged into turmoil.
Lao Cai could no longer sit still at this moment. This was simply 911 in the financial world. He began to reflect on whether it was a wrong decision not to rescue Lehman. Now he no longer cares about so much, what is the bottom line, what is the government's inability to directly participate,
Go to hell, there are no rules anymore. As long as you can survive, you have to drink even poison. On September 20, with the encouragement of Lao Cai, the government officially submitted a bill to save the financial system to Congress, the so-called
Tarp plan. The Ministry of Finance will be authorized to purchase up to 700 billion yuan of non-performing housing mortgage loan assets. The US government hopes to solve all problems within 2 years. It hopes to solve this problem before it affects the real economy and avoid problems like 19
The Great Depression of the 1930s.
Did you know that the launch of this plan also had twists and turns? On the 29th, the House of Representatives rejected the 700 billion yuan bailout plan. The stock market fell sharply. The Dow Jones Industrial Average plummeted 777 points, which was the largest point drop in history. The single-day drop was as high as 7%.
The largest decline since the global stock market crash in 1987. Market confidence is weak, the index continues to sink, and the 10,000-point mark is in danger.
The rich man is panicking, the rich man is anxious, and the President of the United States also wants to scold his mother. Gentlemen, look what we have become, why are you still gambling at this time? Stop being naughty, be good!
At this time, the Senate stood up: "Hey, you naughty boys, why don't we vote again. Lao Cai, in order not to embarrass the House of Representatives, you will change this plan and package a new plan.
"
Lao Cai has no choice but to change it. I started my business by drying water-injected pork. The new bailout plan has been supplemented to 450 pages, and the total amount has been increased from the original 700 billion yuan to 850 billion yuan. It also adds the extension of tax cuts and the bank expansion plan.
The deposit insurance limit was increased from US$100,000 in 2008 to US$250,000.
On October 2, the Senate voted 74 to 25 to pass a new version of the bailout plan. The purpose of this vote was to appease the nervous American public and support economic growth. It is expected to be helpful to global stock markets and will put pressure on the House of Representatives. Some
Public opinions also began to turn to support the bill. At this point, major banks have received a large amount of investment, major banks have received capital injections, loans have been opened, and credit has been unfrozen. The severely damaged market has begun to operate normally, and the vigorous financial crisis has come to an end for the time being. Everything
Will start again.
This large-scale global financial tsunami caused a total of 5 trillion yuan to disappear, 8 million people were unemployed, and 6 million people were homeless. As Bank of America, Morgan and Goldman Sachs gave up their investment banking business, they instead applied to become the Federal Reserve Bank of America.
Under the management of the Savings Bank, the five major Wall Street investment banks have become history. Yesterday's glory has become a fleeting thing, and everything seems to be reset to zero and start again...
In addition, what is unexpected is that after Lehman announced its application for bankruptcy protection, Barclays Bank of Great Britain quickly announced on September 17 that it would invest 1.75 billion yuan to acquire Lehman Brothers' New York headquarters, two data centers and
Some trading assets. Nomura Holdings, the largest securities company in Japan, signed two consecutive agreements with Lehman Brothers on September 22 and 23 to acquire Lehman’s Asia-Pacific business and its European and Middle East businesses. A subsidiary of Gaul Electric Power
The company edf said on September 29 that Gallic Electric has agreed to acquire subsidiaries from Lehman Brothers, a move aimed at optimizing the gas supply business of Gallic Electric. On the same day, private capital operating company LLC reached an agreement with Lehman Brothers to invest
2.15 billion yuan to acquire most of Lehman Brothers’ investment management businesses. On October 3 of the same year, Nomura Holdings signed an agreement with Lehman for the third time, agreeing to acquire Lehman Brothers’ Indian back-office business. The once glorious Lehman
In three weeks, it had been torn into pieces and changed beyond recognition. At this point, Lehman finally hit the bottom completely and would never see the light of day again.
Liang Ying punched the table with hatred. He did not expect that Lehman Brothers would be torn apart by wolves in such a short period of time. Originally, Liang Ying was interested in some of Lehman's businesses.
sector, ready for further negotiation, but after the collapse of Lehman, all attention was focused on the stock market. When I came back to my senses, the fattest piece of meat had been torn away by Barclays. Think about this originally
Barclay, who was the last hope to rescue Lehman, became the first hungry wolf to tear flesh after Lehman's collapse. At this time, Bai Shuo realized even more that the capital that the teacher said in school was bloody.
.
Seeing the annoyed Liang Ying, Bai Shuo patted him on the shoulder and comforted him: "Losing one Lehman is nothing. There are bargains everywhere now. Let's go out and buy some good things."
"Where to go? What to buy?"
"Go and see if there's anything at a crazy price or a big sale."
Liang Ying opened her mouth wide: "What? This is the United States. Where can you find the domestic sales that involve people jumping off buildings and bleeding."
Bai Shuo pointed at the bleak stocks on the computer screen: "Aren't these all selling off the building?"
Liang Ying suddenly realized: "Haha, this description is really vivid. Let's go, maybe you can find three buildings in New York waiting for you."
The two of them walked around for a while. The once bustling Wall Street has now become extremely depressed. The noise of the past has calmed down. Everything seems to be re-gestating, waiting for the time to mature before choosing the way to be reborn.
Of course, the two of them were not just hanging around. While looking at the scene in crisis, they discussed issues that needed to be planned for the future.
You must know that the results of this victory are extremely huge. According to the previous distribution agreement, all the profits this time will be divided in a 50-50 ratio between the operation team and the investment team, and among the operation team, Bai Shuo will exclusively hold 55%
Liang Ying holds 35% of the share, and the remaining 10% will be distributed by other people in the team. According to this distribution method, Bai Shuo's personal assets have increased by approximately 34 billion yuan; Liang Ying's personal assets have increased by approximately 24 billion yuan; Xiao
The Huaying Group also received tens of billions of yuan in profits; Huaying Group received 2.4 billion yuan in profits; the other participating capital entities such as Baima Brothers, Changge Investment, Dahua Holdings, Shengshi Huazhang, and Hengan Media each received hundreds of millions.
Ranging from one billion to hundreds of millions; as for Liu Shu and Zhong Pengcheng, they also received hundreds of millions of profits, and Weilun, Hans, Robert, and William also received tens of millions or even hundreds of millions in bonuses. As for everyone else in the team
Each member, including Kevin, Tong Lin, Anna, Zhao Yong, and Niu Er, in addition to the established salary, also received a considerable amount of income based on personal contribution, which was sufficient for retirement.
With the current amount of funds, it is no longer possible to be a small self-employed person, and eggs can certainly no longer be put in one basket as before. Instead, issues such as investment stop loss control, risk prevention, etc. need to be systematically considered.
Companies, group operations, and fund-style management are necessary. And the biggest winners this time, Bai Shuo and Liang Ying, may continue to fight side by side in the future after completing the battle of the subprime mortgage crisis.
time, but they will inevitably move in different directions based on their respective strategic goals. As the saying goes, if they are separated for a long time, they will unite, and if they are united for a long time, they will be divided, but the two of them know that no matter where they are in this world, they will be brothers forever...?