What Wang Yaocheng said was actually not a secret.
Major multinational banks tried their best to hide the huge losses in the subprime mortgage crisis in order to maintain the confidence of depositors in order to weather the financial crisis sweeping the world.
As for the large and medium-sized banks and financial lending institutions that have gone bankrupt, it is purely because their capital chain has been broken, and the huge hole can no longer be covered up, so they have to exit sadly.
Whenever possible, multinational banks will not disclose the real losses?
They have 100 ways to spread these huge losses into the provision for bad debts every year, digesting this bitter evil year after year, knocking out teeth and swallowing blood.
Doesn’t Citibank know that Samsung Group’s 55% preferred equity is worth much more than $83 billion?
Why are royal funds so cheap?
They are not fools. There is a reason for doing this, that is, to collect cash flow as much as possible to prevent a wave of bankruptcies from depositors at any time, which would be a real disaster.
Although it is possible that we will not reach that stage, all preventive work that can be done must be done ahead of time, taking into account the worst-case scenario and countermeasures.
UBS Group's sale of ABB Group shares has a similar purpose. After all, as long as UBS Group can hold on, there will never be a shortage of high-quality investment targets in the future, and there will be plenty of opportunities.
A sneer appeared on Wang Yaocheng's face and he continued;
“Only when we understand all this can we formulate a targeted expansion plan that is in line with the development of the consortium, seize every opportunity to strengthen ourselves, and collect all the good things we want.
Despite the fact that the subprime financial crisis sweeping the world is approaching with great ferocity and is likely to change dramatically, it will not actually turn the world upside down.
Once the biggest thunderbolt explodes, most of the damage caused by the financial crisis will be clearly revealed, and cleaning up the mess and self-repair of the world economy will no longer be a concern.
Therefore, considering the urgency and difficulty of acquisition, the acquisition of ABB Group is ranked first.
Because UBS Group is eager to withdraw funds, relevant negotiations are very basic. I have instructed Du Bo to set up a special working group to acquire the equity of ABB Group in the market.
Within a week, ABB Group will be in my pocket, and this will be the top priority.
Things are only good when they are in your hands. If you put them in other people's pockets, you will only be able to look at them.
At the same time, Du Bo will command an acquisition team of hundreds of people to acquire Rio Tinto's equity in the open market through hundreds or thousands of accounts. Facing the cunning and cunning board of directors of Rio Tinto, the consortium will directly defeat it with force.
, initiated a hostile takeover.
The plan is to use a thunderbolt method to seize the Rio Tinto board of directors. We don’t have so much time to grind our teeth with them, so we will directly pile money to death them.
In today's frightened world financial market, I am very interested to see who will be the white knight?
As for the so-called poison pill plan, we have settled everything before the Rio Tinto board of directors launched it. What we want for this forced acquisition is to be fast, accurate and ruthless, without giving the other party a chance to react.
This is the second one.
As for the third one, it’s not Wachovia but Washington Mutual, do you know why?”
Wang Yaocheng was in a good mood today and asked a question again. Vice Chairman Huo Jiaguang was shocked and did not rush to answer. Instead, he made some practical calculations first;
With assets of US$307 billion, Washington Mutual is the largest savings financial institution in the United States. A large proportion of customer deposits are used in housing loans, and it actively promotes debt products that are mortgaged with housing and commercial real estate.
As the subprime mortgage crisis worsened, Washington Mutual's operating conditions continued to deteriorate. In order to increase its capital, the bank announced a large-scale capital increase in April this year, raising US$5.6 billion.
However, since mid-July, as US securities giants Lehman Brothers, Merrill Lynch and two government system mortgage institutions have surfaced the problem of insufficient funds, the bank has experienced a wave of customer runs, with the amount of deposits withdrawn in three days reaching as high as 267.
billion US dollars.
On the 14th, the closing price of the bank's stock closed at US$1.69, falling below the US$2 mark, a plunge of about 25% from the previous trading day, and the overall market value plummeted 91.2% from a year ago.
The board of directors of Washington Mutual Bank had no choice but to start looking for a buyer, but was eventually forced to close down due to excessive capital outflows and faced the danger of bankruptcy.
As far as Huo Jiaguang knows;
Unable to bear the heavy losses on its mortgage loans, Washington Mutual has now decided to sell. Unfortunately, this decision seems to have come a little late.
It entrusted Goldman Sachs Group and Morgan Stanley to find a buyer for it, and the U.S. government also tried its best to bring it together. Potential buyers include Citigroup, HSBC Holdings, ****, and Wells Fargo. However, due to the increasingly severe financial crisis, Washington cooperated
The bank still has not found a successor.
In other words, Washington Mutual is a commodity on the shelf, and you can take it at any time if you are willing, and the cost will not exceed US$2 billion.
After asking around the world, everyone is very tight on money and no financial institution is interested in taking over.
Therefore, there is no need for the Royal Fund to rush into action. Let Washington Mutual liquidate most of its bank employees first, which will be more conducive to its future integration into the HSBC banking system.
Now that it is bankrupt, what do we need so many bank employees to do?
What buyers need to do is bear the high losses on their subprime loans, which is estimated to be approximately US$77.5 billion, and billions of dollars are expected to be invested in the follow-up work to clean up the mess.
The advantage is that Washington Mutual Bank also has a bank branch network across the United States. The original bank staff has been reduced by as much as 80%. It also has 130 billion US dollars in basic deposits from customers. These funds are all savings customers, which is half the same as Washington Mutual Bank.
Money has nothing to do with it.
Wachovia Bank is much smaller, with total assets of about US$91 billion. It is also caught in the subprime mortgage crisis and has much smaller problems. Recently, it has experienced a black hole of losses of about US$14 billion, causing a run on depositors.
As a result, more than 7 billion US dollars in deposits were withdrawn in a short period of time, forced to accept the custody of the Federal Deposit Insurance Corporation, and appeared on the shelves waiting to be sold.
The cost of absorbing losses is to acquire Wachovia Bank, which costs about US$31 billion (including funds paid to the bank's board of directors). In a normal year, the acquisition price would need to be multiplied by about twice.
Now you can get it for free at almost 1/3 of the price. This is a valuable opportunity during the financial crisis.
But why did the chairman want to acquire Washington Mutual Bank in the first place?
After thinking about it, Huo Jiaguang's eyes suddenly lit up and he said hurriedly;
"Chairman, I roughly understand what you mean. As the largest mortgage financial institution in the United States, Washington Mutual Bank is larger and has fallen deeper into the subprime loan crisis. However, because it is one of the originators of subprime loans, it still has
I hold a large number of property rights for overdue loans that have been repossessed by banks. Although they are now non-performing assets, they are real property rights after all. I will have the opportunity to cash out in the future to reduce losses.
Although Wachovia was not deeply trapped, most of the financial derivatives it held were subprime loan derivatives, and any losses were net losses. In comparison, the potential value of Wachovia was not as high as that of Washington Mutual."
Wang Yaocheng smiled and said, "This is one aspect, but from another aspect;
Washington Mutual holds US$130 billion in customer savings deposits, which can be used after the merger with HSBC. Based on HSBC's size and excellent reputation, there is no need to worry about any problems. This is a disguised increase in our cash flow.
.
The third aspect is because Washington Mutual is headquartered in Seattle, you know what I mean?"
Huo Jiaguang understood instantly;
The United States has a vast territory. If the metaphor can be compared to the golden horn, silver edge, and grass belly in Go, the American economy is mainly based on the east and west coasts and the economic centers in the south. It also takes into account the Great Lakes region, with dense population and developed economy.
As for the vast central region, the population is sparsely populated and the economy is not very strong, so it can only be regarded as a wasteland.
There are a total of 538 electoral votes in the United States ranked by population. California alone has 55 votes, the central states have six to seven more votes, and only three fewer votes. More than a dozen states combined can equal the number of votes of California.
Compete with each other.
Other top-ranking regions include the southern state of Texas with 34 votes, the Pacific coast state of Florida with 27 votes, the Atlantic coast state of New York with 31 votes, and Washington state with 21 votes.
Without exception, these areas are economically developed and densely populated places, ranking among the top ten metropolitan areas in the United States.
Washington Mutual is located in the Washington metropolitan area and has dense branches in the neighboring state of New York. It is a very powerful large-scale financial institution on the Atlantic coast and will be of greater help to HSBC.
In Wang Yaocheng's critical eye, it would be a pity to lose the market in the central region of the United States. The key is to occupy the financial markets of the east and west coasts and southern metropolitan areas. This is the top priority of the layout.
With the markets in these economically developed areas, we have more than 70% of the potential market in the United States, accounting for most of the winning potential.
Hong Kong Global Telecom also has similar guidelines in terms of corporate strategy.
There is no doubt that all this comes from the corporate development strategic considerations of Chairman Wang Yaocheng, or it is not an exaggeration to say that he is the overall strategic designer.
After today's conversation, Huo Jiaguang really admired Boss. He was very thoughtful from a strategic level. He used natural disasters as a metaphor for the current financial crisis shrouding the world economy. It was really vivid, appropriate and eye-opening.
You can't deny that the two do have a lot in common.
A ruler is longer and an inch is shorter.
Huo Jiaguang knows that strategic layout is not his strong point, and he must have a good mentality. It is too common for his self-confidence to be severely damaged by the amazing and talented Boss in front of him. Don't make it difficult for yourself.
This... is a big monster!
I can only think about it in my heart. Huo Jiaguang didn't dare to say this, so he said with a smile: "Haha... I understand now. Boss, please don't embarrass me anymore. When it comes to the strategic planning of the consortium, I will only
With such admiration and admiration, I’m afraid I won’t be able to find another person in the world who can stand shoulder to shoulder with Boss’s brilliance, so I won’t show my shame.”
"Brother Iemitsu is serious, hehehe... I also showed off a little to make you laugh. It's like a painter who has created a satisfactory work and always wants to invite people to enjoy it. A stage without people applauding is lonely. I hope
Don't be surprised, Iemitsu-nii."
"Where, where, listening to Boss talk in detail today, I felt like I could see the bright moon through the clouds, and I felt like I was suddenly enlightened."
"How can it be so exaggerated?"
"Really Boss, the strategic planning of the consortium must be based on the general trend of the world, find out the context, and then cut the cake decisively based on the strategic direction of the consortium and the principle of maximizing interests. If you are quick, you will be able to do it, but if you are slow, you will not be able to do it!"
"Hahaha...Brother Iemitsu has the essence of what he said. Although there are many opportunities in this world, it will be in vain if we can't seize them. So we must take this opportunity to sweep the market like the autumn wind sweeping the fallen leaves. Even if we can't digest it now, I always put it first
If you move these things back to your own home, it will take one year, not two years, not two years, not five years. Anyway, they can slowly turn into your own strength, but once the opportunity is lost, it will never come back. This is very important."
"I understand! Boss will definitely give me a task, please make it clear."
Wang Yaocheng nodded with satisfaction and said, "Haha, that's right. The action against ABB Group and Rio Tinto has already begun. It's only a matter of time before they are captured. There is no need for you, a veteran, to take action. The same goes for Washington Mutual Bank and Wachovia Bank."
It’s a commodity on the shelf, easily accessible at your fingertips.
I now need you to go to Europe and start negotiations with Vodafone and Telefónica.
We do not need absolute control and can give up the requirement for the chairman. The bottom line is to strive for more than 30% of the equity and retain board seats equal to the equity.
In order to realize the global layout of Hong Kong Global Telecommunications Company, we will protect the mobile phone, chip and telecommunications projects of the consortium enterprises, open up the final direct channel to European and American customers, and achieve the greatest degree of competitive advantage."
Huo Jiaguang stood up with a serious expression and said seriously: "Don't worry, Boss. I will immediately lead my men to Europe and will do my best to strive for the greatest benefits for the consortium. Please look forward to the good news that will be sent back as soon as possible."
"I'm relieved if you take action, hahaha..."
Wang Yaocheng laughed happily, walked over and patted Huo Jiaguang on the shoulder and said, "Let us brothers fight again to completely complete the overall layout of the business empire. After this comprehensive attack, it will take ten years to digest the results. We will not
No matter how big the mergers and acquisitions are, there will be plenty of time to travel around the mountains and forests and enjoy the joy of a better life."
"Boss, you are still young!"
"Haha, there is endless wealth in the world. We must leave some opportunities for those who come after us." Wang Yao said with emotion; "I also want to spend more time with my family. What's more, today's Wang Family Group is already attractive enough.
Eyeballs are gone, we must learn from the philosophy of life of the older generation in the business world, hide our edge, bury our meat in a bowl, and be people who live behind the scenes."
"That's true, hahaha..."
"Ha ha ha ha……"
As soon as these words came out, the two of them laughed knowingly, and the hearty laughter spread throughout the huge office, bringing a full happy atmosphere.