Lin Zuhui and Octopus Bank Vice Chairman and CEO Stanley Ho are standing behind the futures traders.
This is the futures and options trading department of Octopus Bank in Singapore. Although Octopus Bank is mainly a commercial bank, it has inherited the business of the original China Commercial Bank. Therefore, whether Lin Zuhui is speculating in foreign exchange or futures, he is doing it through his own bank.
The trading department of a bank.
In this way, the source of the assets can be concealed. After all, the only way to find out is Octopus Bank; and the trading department of Octopus Bank is open to the outside world.
"How much money has been invested so far?" Lin Zuhui asked with a calm expression.
The manager of the Singapore trading department is a foreigner named Willis. He immediately replied seriously: "Octopus Bank's own funds have been short-sold for US$120 million, and the average short-selling index is 19,350 points. The Great Kansai Earthquake in Japan
Afterwards, we have obtained 1.2 times the book profit, and the current Nikkei index is 18,450 points."
Willis is calm, but excited inside. It is his honor as an investment manager to be able to communicate face-to-face with the stock god.
Moreover, the boss’ mentality is very calm. Faced with an investment of 120 million US dollars and a high leverage of 25 times, the boss has no expression at all.
Lin Zuhui asked again: "It's unusual for the stock to fall this low after a major earthquake. Either someone is going against the market to support the bottom, or the sequelae haven't come yet."
As if talking to himself, Lin Zuhui actually knew that there were two reasons:
Someone backed up, and it was no surprise that it was a Singaporean trader from Barings Bank. In his previous life, this trader single-handedly caused the collapse of a well-known British bank that had been in business for more than 200 years, setting a world record - the employee who cheated his boss the most; but
It was not Barings Bank that asked him to operate like this, but the trader took advantage of Barings Bank's loophole - the wrong bank account, and bought a large number of Nikkei Index futures, directly causing a loss of 1.5 billion US dollars; a series of
This problem can be called a negative textbook for the banking industry.
Therefore, don’t think that the Fuel Treasure Incident has only occurred in the mainland. Such bizarre cases have also occurred in financial countries like the United Kingdom. A trader spent a large amount of funds to speculate in futures, but the British headquarters did not find any problems after several inspections.
Speaking of which, this time Lin Zuhui asked Octopus Bank to intervene in short-selling the Nikkei Index. In addition to knowing that the earthquake in Japan would cause the Nikkei to plummet, the collapse of Barings Bank also reminded him - make some money and buy Barings Bank.
.
Moreover, there is a trader like Barings Bank who has bought "long orders" with more than 20 billion U.S. dollars (the margin is about 1 billion U.S. dollars), which results in a huge trading volume, and he can definitely get in.
Including New Era Group, they also short-sold Nikkei futures worth more than HK$500 million.
Ho Chang-hong is also a financial elite and a banking expert, so he said: "Since the boss thinks so, then we are in a stable profit situation, and we can rest assured and wait for the Nikkei Index to fall."
At this time, the futures index position can be closed at any time, if there is an opponent's order. If there is no opponent's order, the only option is to wait for the delivery date.
He Changhong thought that Lin Zuhui was worried, so he specially brought him to Singapore for inspection.
Unexpectedly, Lin Zuhui just thought about it for a moment and immediately issued an order: "Continue to short-sell the Nikkei Index and give me another US$60 million quota."
Everyone was shocked, the boss was serious.
Willis immediately said: "Okay, I'll make arrangements right away!" After saying that, he took action immediately.
Then, Lin Zuhui asked Ho Changhong: "How prepared are you for overseas expansion?"
Stanley Ho reported: "After several years of development, Octopus Bank has met the conditions for overseas expansion in terms of human resources and management systems. The Singaporean government has approved us to open branches here, and Southeast Asian countries such as Thailand and Malay have
We are also negotiating.”
Lin Zuhui nodded with satisfaction and said: "We must build a global financial network as soon as possible!"
The financial environment of many countries is open. This is also the result of the struggle and deception of European and American financial gangsters. For example, in Southeast Asian countries, Thailand began to have rapid economic growth in the 1980s. It once considered itself a developed country, which is why it developed its capital market;
Of course, the harvesting of European and American capital is also unambiguous.
To put it simply, why do European and American countries allow those countries to develop financial markets? Because they are confident in their financial capabilities and are ahead of other countries, so they want everyone to open up; just like the real estate developers in Xiangjiang are now beating up the real estate developers in the mainland.
I have been playing for decades, and I just had a full meal, so how can I survive?
In the previous Asian financial crisis, South Korea almost went bankrupt. The IMF (International Monetary Fund) was equivalent to holding a gun and pointing it at the Koreans, either opening up South Korea's financial market or bankrupting the country. In this way, European and American capitals led by Wall Street have
Seize Korean industries.
Of course, as long as you have money, everyone can enter the Korean market. After all, opening up is not targeted at a certain country, but open across the board. Therefore, Lin Zuhui cannot eat meat, but there is no problem in chewing a bone and drinking soup.
He Changhong always felt that his boss had something to say, and he wondered in his mind whether the boss had already found a target to acquire an overseas bank?
“Don’t worry, boss, we will definitely forge ahead and develop and expand Octopus Bank!” He Changhong assured.
Lin Zuhui nodded. Octopus Bank had already made back all its historical losses last year, and now has a net profit of more than 1 billion Hong Kong dollars a year. It can be considered a leader in the banking industry.
In fact, he does not value commercial banking business, as long as it develops steadily, after all, Hong Kong has only 6 million people, so how much deposits can it absorb; what he values is that it can establish a global investment banking business network to facilitate the investment and deployment of his own funds.
Barings Singapore Futures and Options Trading Desk.
This chapter is not finished yet, please click on the next page to continue reading the exciting content! Futures manager Nick Leeson is like a gambler at this time, buying a large amount of Nikkei index futures, and he can get 10 million from London every day
funds in pounds sterling.
Last December, at a Bahrain financial results conference in New York, 250 Bahrain bank workers from around the world regarded him as a hero of Bahrain and gave him a long and warm applause.
This fuels ambitions to make more money for Barings.
Although the Kansai earthquake caused him a lot of losses, he believes that more than ten days have passed and the Nikkei index has not plummeted, so it will definitely bottom out and rebound.
"I want to make a lot of money!" Nick Leeson
A trader's voice came: "Manager, someone is short selling in large quantities, do you want to take an order?"
"Take it, give it all to me. We have 10 million pounds every day. The Nikkei Index will rebound soon. Let those fools jump off the building after losing money!"
The traders have no doubts about him, and the manager is Bahrain’s hero.
Nick Leeson asked: "How many Nikkei futures and Japanese government bond contracts do we have?"
One trader said: "50,000 Nikkei futures, 20,000 Japanese government bond contracts."
Nick Leeson smiled arrogantly and said: "Very good, the more we buy, the more we make! Once this is done, I will give you a holiday and go to Las Vegas for a week of fun."
, one American girl a night.”
"Thank you, manager!" Several traders said happily, and then started to operate like chicken blood.
Nick Leeson was not completely confident and excited at this time, but more of a kind of madness, and behind this madness was the fact that in 1992 he set up a '
88888's 'error account'. This was originally a normal 'error account' during the operation of the financial system, recording minor errors and handling them in Singapore to avoid trouble in London.
It was this 'wrong account' that led to today's irreversible situation. At first, his subordinates made a mistake in the customer's transaction, and he recorded the mistake in the 'wrong account' (concealed), and the loss was 20,000 pounds; later, his
A friend also made many mistakes, and he recorded them in his 'error account'.
But there are at least three problems that bother him: first, how to make up for these mistakes; second, how to avoid the end-of-month internal audit of the London headquarters after recording the errors into the "88888" account; third, SIMEX requires them to increase margin every day, and they will calculate
How much does the Singapore branch lose every day?
In order to make up for the mistakes of his employees, Leeson transferred the commissions he earned into his account, but the premise was of course that these mistakes should not be too big, and the amount of losses caused was not too big, but the mistakes caused by George were indeed too big. In order
Earning enough money to compensate for all losses, Leeson took on more and more risks. He was engaged in a large number of straddle trades. Because the Nikkei index was stable at the time, Leeson would earn option premiums from more trades. If
Due to bad luck, the Nikkei Index has fluctuated violently, and this transaction will cause Bahrain to suffer huge losses.
In this way, he started to fill in the holes and started making fake checks to pay the London headquarters, and finally got to where he is today.
"I've made a lot of money this time, so I'll stop!" Nick Leeson thought after calming down.
Beginning in mid-February, the Nikkei Index began to continue its sharp decline.
On February 23, the Nikkei stock price index fell sharply, 276.6 points, and closed at 17,885 points.
On that day, Nick Leeson finally realized that he could not make up for his losses, so he was forced to flee in panic.
At this time, the Singapore trading department of Barings Bank held more than 60,000 long futures contracts. Facing the rising trend of Japanese government bonds, it also held more than 26,000 short contracts, resulting in losses.
It surged to a staggering £860 million.
The bankruptcy of Barings Bank has become a foregone conclusion.
On the morning of February 27, Lin Zuhui learned the news that at 9:30 last night, the Bank of England, the central bank of England, had no choice but to announce the bankruptcy and liquidation of Barings Bank and look for a buyer without coming up with other rescue plans.
assume debt.
At the same time, London Clearing House stated that after consultation with relevant parties, Barings Bank will be treated as unable to repay its arrears, and in accordance with the power granted by relevant laws, Bahrain’s self-operated open positions will be closed, and the open positions of its agency customers will be closed.
The contract is transferred to other members for processing.
Lin Zuhui knew that the opportunity had come!
Bahrain Bank was founded in 1763 by Sir Francis Bahrain. Due to its flexible and innovative operations, Bahrain Bank soon achieved great success in the international financial field. Its business scope is also quite extensive, whether it is to the Congo
Whether it's refining copper, trafficking wool from Australia, or digging the Panama Canal, Bahrain Bank can provide loans.
Bahrain Bank is different from ordinary commercial banks. It does not develop ordinary customer deposit business, so its funding sources are relatively limited. Its business expertise is corporate financing and investment management. In the 1990s, it began to develop overseas and carry out extensive investments in emerging markets.
In 1994 alone, it opened offices in China, India, Pakistan, South Africa and other places, and its business network is mainly in emerging countries and regions in Asia and Latin America.
What Lin Zuhui lacks is an investment bank like Barings Bank. If he is included in Octopus Financial Group, he will be equivalent to extending his financial tentacles to all parts of the world.
Therefore, he quickly decided to lead a team to the UK to prepare to purchase Barings Bank.
He knew that Barings might only be worth £1, but might require an infusion of more than $1 billion.
But this time Octopus Bank made about US$1 billion from Nikkei.
In less than three months, it’s a great deal to pick up a centuries-old company for nothing.
Of course, there may be competitors, but just give it a try!
Even if the acquisition fails, at least one billion US dollars will be earned!
On the same day, Lin Zuhui's private plane took off from Xiangjiang and headed towards London.
On the plane were senior executives of Octopus Financial Group, as well as financial foreign aid such as Yuan Tianfan and Liang Botao.