After Lin Zuhui and his party arrived in London, they were not in a hurry to take action. After all, Barings Bank had not successfully closed its positions in index futures and bonds. Who knew how much the loss would be? How much capital would be needed to revitalize Barings Bank?
It was not until March 2 that Barings Bank took advantage of the Nikkei Index's rebound of more than 300 points, and with the assistance of the Bank of England and relevant parties, finally transferred the world's open futures contracts to Singapore, Tokyo, and Osaka.
All positions were liquidated. So far, Barings Bank has suffered losses as high as 916 million pounds, equivalent to more than 1.4 billion U.S. dollars, due to failed investments in financial derivatives.
The news of the bankruptcy of Barings Bank Group shocked the international financial market. Stock markets in various places were affected to varying degrees. The exchange rate of the pound fell sharply, and the exchange rate against the mark fell to a record low. The hidden impact of the Barings Bank incident on the European and American financial industries is immeasurable.
Thursday, March 3rd.
The headquarters of Bahrain Bank welcomed the visit of Lin Zuhui and his party.
Max, the Commissioner of the Bank of England who is responsible for handling the affairs of Barings Bank, and others welcomed these unexpected guests; after the major British financial institutions had no intention of acquiring Barings Bank, everyone indeed pinned their hopes on foreign financial institutions, but they did not expect to attract the world.
The attention of the richest man.
But it's normal to think about it. The world's richest man is like a tireless 'sudden rich', buying and selling everywhere in the world. People don't know how much wealth he has, because he is a 'stock god', and it is said that even Wall Street admires him.
The endless stock god.
After a few simple polite words.
"Mr. Lin, the financial information has been prepared for you!" Max said politely.
"Thanks"
Lin Zuhui signaled the audit team to start working, and he led He Max and others to the conference room.
After everyone sat down, Max couldn't help but ask: "Mr. Lin, as far as I know, one of the major investors participating in the Nikkei futures index trading this time is your Octopus Bank."
Lin Zuhui said generously: "Yes, but compared to Bahrain Bank, we can only be regarded as a small customer. Moreover, most of our funds are traded on behalf of clients."
Max smiled bitterly and said: "This time Barings Bank was tricked by that idiot. It is really a pity that a 233-year-old bank has collapsed like this."
Lin Zuhui said calmly: "A 233-year-old bank collapsed with a loss of 900 million pounds. It can only be said that it was too vulnerable. Of course, a 233-year-old bank is worthy of respect.
So, I think it just needs a new owner."
He Changhong, Yuan Tianfan, Liang Botao and others laughed, and everyone was very relaxed, because Lin Zuhui said that if it is just a matter of money, then the acquisition is not a problem. If there are too many external factors, or London officials make things difficult, then the transaction will be cancelled.
, it is not necessary to buy it.
When Max and others saw Lin Zuhui being so relaxed and calm, they couldn't help but sigh, this magnanimity was remarkable.
"Mr. Lin, does he know that ING Group has also come to discuss the acquisition?" Max decided to wait for a price for Bahrain Bank.
The final decision on who to trade to will still have to be approved by senior Bank of England officials and the courts.
Lin Zuhui said with a smile: "I don't know about this, but I think it is a good thing. After all, if Barings Bank collapses, more than 4,000 employees will lose their jobs, and a 233-year-old brand will disappear."
Max's heart moved and he immediately asked: "Assuming that Mr. Lin's acquisition is successful, will the name not be changed?"
Lin Zuhui smiled and said: "No, it's just a name, and the signboard is also valuable."
Max and others nodded!
Barings Bank was initially engaged in trading activities, and later became involved in the securities industry. In the early 19th century, it became the chief issuer of British government securities. Over the past 100 years, it has made great progress in securities, funds, investments, commercial banking and other aspects, becoming a leading financial institution in London.
It is an unprecedented group securities firm in the center. Even the Queen of London's assets are entrusted to its management. It is known as the "Queen's Bank". In 1993, the bank's assets were 5.9 billion pounds, liabilities were 5.6 billion pounds, capital plus reserves.
4.5 billion pounds, with more than 4,000 employees at home and abroad, and a profit of 105 million pounds. In 1994, the pre-tax profit was as high as 150 million pounds. At that time, the bank managed 30 billion pounds of fund assets, 1.5 billion pounds of non-bank deposits and
£1 billion in bank deposits.
The loss was more than 900 million pounds, but its asset value was less than 500 million pounds, so it was obviously insolvent.
Therefore, after the auditors and others briefly read the financial statements, Lin Zuhui asked: "Mr. Max, I wonder what conditions you have?"
Max and others made eye contact, and then he said: "The acquirer needs to inject 780 million pounds to resume operations of all Bahrain's banking business and some securities and fund businesses immediately."
Lin Zuhui said: "No problem!"
Max and others were stunned. They agreed so readily?
You know, ING Bank Group was very dissatisfied with this price and said it still wanted to consider it.
However, in Lin Zuhui's view, the money injected into it is not his own! To put it more bluntly, it is so easy for him to make money, and he needs to consider so much.
"The acquirer also needs to promise to protect the rights and interests of current employees and not to fire them at will," Max continued.
"Everyone involved in this incident must resign, including the CEO and others." Lin Zuhui said without hesitation.
"This is what it should be!" Max nodded.
Then the two parties negotiated some conditions, and Lin Zuhui almost agreed to them with great sincerity.
As long as no other factors are involved, reasonable conditions can be agreed.
Finally, Max said: "Since Mr. Lin is so sincere, I will definitely push for this deal to be completed as soon as possible!"
Lin Zuhui nodded and said, "Okay, we'll wait for your news."
He is not in a hurry because Barings Bank cannot afford to delay. After all, if it resumes business as soon as possible, the loss of reputation can be minimized.
This chapter is not over, please click on the next page to continue reading! Bank of England Headquarters.
A group of senior executives are discussing the involvement of Octopus Bank in acquiring Barings Bank. They thought that Barings Bank was a hot potato and local financial institutions were not interested. The only interested bank, ING Group, was not sincere enough and always bargained.
Unexpectedly, we received an acquisition invitation from the world's richest man, Lin Zuhui, and he was very sincere.
The problem now is that Lin Zuhui is a Chinese, otherwise everyone would agree to the acquisition invitation without any discussion. But if he directly denies the transaction, it must be very offending.
Lin Zuhui is a representative of Chinese businessmen. If he is treated unfairly in London, it will definitely make the outside world think that London's business environment is not good, and there will be some negative public opinion. At the same time, Lin Zuhui is the richest man in the world, and the London government hopes that he will invest in the UK.
Webb Buster, the governor of the Bank of England, who is over 60 years old, said: "Let's discuss it, how should we decide?"
One director asked: "The question now is, does ING agree to these conditions?" The implication was that ING was given priority.
Another director said: "ING is not sincere enough. The important Bahrain Bank is more suitable for Lin Zuhui, who has the title of 'Stock God'. Although he is Chinese, his talent in finance can be called a genius level. He should be in charge of Bahrain."
Bank, this company will have greater development. Moreover, this richest man is the target of our investment in the UK. If we deny the acquisition just because he is from Xiangjiang, it will have a series of bad effects. After all, we in the UK
Capital also needs to enter the mainland and Hong Kong."
For a time, everyone had their own opinions.
Weber Buster finally adopted a democratic vote, and Octopus passed by a narrow margin.
Here the Bank of England is still discussing whether to agree or not, while Lin Zuhui is sitting in the European branch office of New Era Group with some heartache.
Nearly 1.3 billion U.S. dollars of capital injection, which is about 10.3 billion Hong Kong dollars. Although Octopus Bank is expected to make about 1 billion U.S. dollars from this speculation in the Nikkei Index, it is still money earned, not picked up money.
In this way, the British still don’t know how to be grateful.
Lin Zuhui felt heartbroken for a few minutes, and then his eyes lit up. Since he had spent tens of billions in the UK, why not double his profits from them?
Stock trading is his specialty!
Although he could not remember the trend of British stocks, he speculated: Theoretically, the trends of London and New York stock markets should be closely related, so banks must have risen sharply from 1995 to 1998, and Davos will benefit from the Internet bubble and must also rise sharply.
.
Since Europe and the United States began to emerge from the economic downturn in 1993 and ushered in a period of golden development, the stock market must have risen during this stage.
Thinking of this, Lin Zuhui wrote down several stocks such as Lloyds Bank, Barclays Bank, and Davos on paper, and decided to let New Era Group spend 10 billion Hong Kong dollars to purchase these stocks.
He believes that the annual return rate can be as high as about 35%.
The New Era Group had a balance of HK$12.5 billion at the end of last year, and this year it also had a profit of about HK$25 billion (estimated). Excluding annual dividends, it still has more than 30 billion in funds.
The New Era Group's large investments this year are mainly in Amazon Shopping Center, Langham Hotel Group and other projects. However, Lin Zuhui plans to expand the group's debt to HK$30 billion, which means it can still borrow nearly HK$8 billion.
In general, the plan is to allocate another 10 billion in cash flow to purchase stock investments. There are still more than 20 billion on the account, and we can strike again at any time and bid for the development rights above the Hong Kong Airport Railway Terminal.
Thinking of this, he called Liang Zhenxun in Hong Kong and asked him to arrange it quickly.
On March 6, Octopus Bank and Barings Bank reached an agreement, willing to invest 780 million pounds in cash to take over all its assets and liabilities and resume operations;
On March 9, this plan was approved by the Bank of England and the court. The legal process for Octopus Bank to acquire Barings Bank was completed. All banking businesses and some securities and fund businesses in Bahrain resumed operations. So far, the collapse of Bahrain has come to an end for the time being, making the British proud.
A two-century bank has changed hands under new owners, and a century-old foundation has been destroyed in one fell swoop.
In this case, Nick Leeson, who was responsible for the catastrophe of Barings Bank, was forced to flee Singapore in a hurry on February 23, 1995, and was arrested at Frankfurt Airport in Germany in the early morning of March 2.
Barings Bank Headquarters.
Lin Zuhui sat in the office as the new owner. He thought that the legendary Bahrain family, the "sixth largest power" in Europe, would come to challenge him, but he didn't expect that the Bahrain family, which had won five titles, was no longer there.
If you continue to engage in the banking industry, even your family will be in decline.
He was immediately disappointed. Why couldn't he meet some ancient NB family to compete with him?
In fact, at Lin Zuhui's level of wealth, he has become a guest of various countries; if he is really attacked locally, he will just move the funds to his home. If the United Kingdom gives him unfair treatment this time, he will sell his British business and exchange it for
Invest in other countries. For him, he can make money everywhere.
"BOSS"
A middle-aged British man walked into Lin Zuhui's office. He was the new president of Barings Bank, Andre. He was originally a senior employee of Hong Kong's Octopus Financial Group and an elite with a legal background.
The CEO does not necessarily need to have a financial background, and a legal background is also a good choice. Of course, Andre himself has ten years of experience working in an investment bank.
Lin Zuhui nodded and said: "My job requirements for you are very simple, that is, learn from the lessons of this accident and improve the company's system. As for investment, don't rush anything now. I will convey the task later."
Andre said: "No problem, I know what to do!"
This chapter is not finished yet, please click on the next page to continue reading the exciting content! This time to take control of Barings Bank, Lin Zuhui mobilized a total of five elite talents to quickly control the company. And these people are all his old retainers, some of whom are
People from Octopus Financial Group and Hengjin Investment are all people I trust.
Lin Zuhui has reached his current position with countless foreign consultants around him, so he has no worries about not being able to control Barings Bank.
"If someone jumps out and doesn't cooperate with your work, he will be fired directly. I don't like employees who are not loyal to the company and the boss."
Andre was refreshed. He had been with the boss for a long time and knew Lin Zuhui's temper. If he could not control Barings Bank, the boss might be willing to waste 1.3 billion US dollars or dissolve Barings Bank.
"Okay, I will definitely manage Barings Bank as a member of the Octopus Financial Group."
Lin Zuhui nodded and continued: "I will arrange the investment later. Wherever Bahrain Bank falls, it must get up. Therefore, our goal is still the Nikkei futures index, but I have to give instructions."
After the Kobe earthquake, the Japanese stock market rebounded sharply after the Nikkei fell by 5,000 points. In May or June, it will almost fall to around 15,000 points. You can buy the Nikkei here at that time.
Of course, speculation in the Nikkei futures index is a very dangerous project, and it is too easy to liquidate your position with 25 times leverage.
However, Lin Zuhui has a way, that is, if he invests 1 billion in funds, he will reserve at least 5 billion in funds to cover the position, or even more. As long as the position is not liquidated and the general trend is correct, then it is a guaranteed win.
Because of this, even if the big capitalists on Wall Street were targeting him, they would not be able to defeat Lin Zuhui. After all, with his amount of funds, he could cover his position ten times without wavering. However, the extent of man-made reversal of the general trend is limited.
Andre immediately said confidently: "Speaking of which, those colleagues are very welcoming to your acquisition of Barings Bank, boss. Many of them admire you very much."
Lin Zuhui immediately waved his hand and said: "I will only communicate with you about the investment, and you must keep it confidential. There is an old Chinese saying that the first bird will be shot, and I don't want to be too ostentatious."
The reason why he is famous is because he cannot hide part of his operations. It is not because he came up with this limelight.
In fact, just because of Lin Zuhui's domineering side, he has been rated as a "stock god" level figure. If all his financial operations were exposed, I believe he would already be lying in the laboratory.
"No problem, I will definitely keep it confidential."
"Well, actually, I also came to some conclusions based on a combination of many financial consultants."