Chapter 930: 930
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To say, Lehman Brothers was really unlucky.
Lehman Brothers was exposed to the crisis last year, in September 2007.
On September 11, seven years ago, two planes crashed into the world trade center in New York, Lehman headquarters in the world trade center. They suffered heavy losses, but they also narrowly escaped death.
On the same day seven years later, Lehman's share price fell below 4 yuan, and it came to the moment of life and death again.
At the end of 2007, Lehman's total assets were about $700 billion, and the net value of the company after deducting various liabilities was about $20 billion, with a leverage ratio of 35 times. This year, that is, in the first half of 2008, the problem of Lehman's mortgage assets was gradually exposed, and the loss could reach $10 billion. The company lost its capital and turned into a net value of $10 billion to support $690 billion of assets, and the leverage ratio suddenly soared to nearly 70 times.
At this time, Lehman was already in danger. If there was a little trouble, Lehman would fall down.
At this time, the Korean Industrial Bank in East Asia, that is, KDB, was willing to inject capital into Lehman. As soon as the news came out, Lehman's share price immediately stabilized.
The main reason why KDB is willing to take advantage of Lehman Brothers at this time is that KDB's boss used to be the head of Lehman Korea branch and has feelings for his old boss.
At that time, KDB was willing to offer $26 A share, while Lehman insisted on $28. Dick Fuld, the head of Lehman Brothers, was really unwilling to "sell at a low price". After all, Lehman was quite profitable, with a profit of $4.2 billion in 2007. But that's the terrible thing about mobility - what's the use of showing eight ABS when the air is dry.
As a result, the delayed transaction finally dragged out a problem. On September 7, 2008, the U.S. government suddenly announced that it would take over Fannie and Freddie and insert $200 billion in preferred stock investment into their capital structure.
The next day, South Korean financial regulators expressed their opinions in the euphemism of the East: "KDB should treat the issue of capital injection into Lehman with great caution." then KDB issued a statement to terminate the negotiations with Lehman. So Lehman's share price fell sharply. What's more fatal is that no one lent to Lehman, and the liquidity will be cut off immediately.
Looking around, Goldman Sachs and Citigroup are struggling. * * * * has just eaten Bear Stearns and will not be interested in Lehman in a similar situation.
There are only two blind dates, Bank of America, a relatively simple and honest bank born in commercial bank, and Barclays Bank from Great Britain.
The weekend of mid September 2008 was just an ordinary holiday for many people on the planet, but it was the autumn of Lehman's life and death.
Before that, Bank of America and Merrill Lynch had been flirting for a long time. Merrill Lynch looked at the mortgage assets on its book and knew that if bank of America bought Lehman, the next short target of this financial vulture was itself. Bank of America is also unforgettable. It sat down at the negotiating table and talked with Lehman, but it always aimed at Merrill Lynch.
Can it be delayed? Without delay, Merrill Lynch resolutely gathered up his delicate body and took the room card handed over by Bank of America at the bottom of the table.
Knowing the good news of Merrill Lynch and Bank of America, Treasury elder Paulson was overjoyed and ordered both sides not to hesitate to complete the acquisition.
That weekend, old Paulson gathered all the executives of Wall Street giants to the Federal Reserve building and did two things. First, following the LTCM crisis in 1998, he asked Wall Street to set up a rescue team to buy Lehman's problem assets, and then the acquirer bought the rest of Lehman's assets; Second, finalize the deal to buy Lehman.
Dare Goldman Sachs tear down the old leader's platform? I'm sure not. So the rescue mission went surprisingly well. Seeing that Lehman was about to be saved, the merger was stuck in a seemingly insignificant section: Barclays is a British bank. Originally, according to British regulatory regulations, the merger and acquisition case needs to be voted by the general meeting of shareholders before it counts.
This is no different from US regulations, but the following one is fatal: until then, Barclays cannot guarantee Lehman's transaction because it will constitute a "substantive merger". The fastest time for shareholders to vote is a few days. During this period, Lehman has to open its business. If investors continue to withdraw their capital, Lehman is likely to fail to pass the M & A case and go bankrupt because the transaction cannot be settled.
Once, when old Paulson persuaded Dick Fuld, the latter replied, "I've been in charge of Lehman longer than you've been in charge of Goldman Sachs". That means very clearly. You're a hair!
So afterwards, some people said that it was because Fuld's consistent arrogance completely angered old Paulson. Others say that old Paulson just wanted to set an example to the greedy Wall Street. In short, old Paulson made it clear very early that the government should not pay for Lehman.
Hum, I just want to treat you as the chicken of that terrible monkey. What can you do to me? Your sister dares to say that about old paper. If old paper doesn't kill you, you're pretty!
However, old Paulson still has to do face work. He asked the British regulators to exempt the relevant regulations, but the Brits shook their head like a rattle: we have enough troubles in our own financial system. Open the back door to save an American investment bank? no way!
Now old Paulson has something to say. Have you seen it? I'm not fussy. I'm begging the British for you
However, when Barclays in turn persuaded the US government to change its mind, old Paulson's attitude was very firm - our country's financial system should not be easily damaged... The implication was very clear, no way!
As a result, the fate of Lehman Brothers as a chicken could not be changed. Lehman Brothers, 158, finally came to the end of its life.
The bankruptcy of Lehman Brothers finally made the subprime mortgage crisis rise into a global financial crisis!
The cruelty of the financial market is incisively and vividly reflected in the subprime mortgage crisis.
However, all this has nothing to do with the Dragon Fund. In front of him was John Paulson, and behind him were large investment banks such as Bear Stearns, Merrill Lynch and Lehman Brothers. Even if old Paulson wanted to dig deeply, he didn't have the energy to do these things.
Let alone, by January next year, Austria black carbon will come to power, and old Paulson's trip as Treasury Secretary will be completely over. He also checked a P!
Yang Jing knows these things clearly, but he can't say it now.
However, fortunately, the Dragon Fund performed well enough in the subprime mortgage crisis and made enough profits under the condition of ensuring concealment, which is enough.
As for John Paulson, although he also made a lot of money in the subprime mortgage crisis, a full $20 billion, and was called "empty God" by later generations, the little money made by Paulson fund really didn't let the Dragon Fund pay attention to it.
A mere $20 billion, not even a fraction of the profits of the Dragon Fund
"Well, we won't discuss this." Yang Jing clapped her hands, raised her glass again and said, "the Olympic Games will be held in Yanjing, China next month. Guys, who is interested in going to see the event with me?"
Henry and the three of them also raised their glasses. After touching and drinking with Yang Jing, Henry smiled and said, "boss, do you want to relax?"
Yang Jing shrugged her shoulders noncommittally, "I've been busy for so many years. I should give myself time to relax. Man, I can't always be as tight as a bow string. It's good for my health to relax properly. By the way, Mike has promised my invitation. He will fly directly to Yanjing next month, and we'll meet there. Guys, who will follow me to watch the Olympic Games?"
Henry looked at both sides, hesitated a little, then raised his hand and said, "count me. I think these little guys can graduate, so I'm going to take a holiday for myself."
Cesar said with a grin, "how can such a good thing leave me? I'll go too."
Yang Jing looked at David. David shook his head and said, "boss, I think I'd better stare here. There needs to be a seat here. And I'm not interested in the Olympic Games. Just go and see it."
Yang Jing looked at the three and finally smiled and said, "well, let's meet in Yanjing next month!"
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To say, Lehman Brothers was really unlucky.
Lehman Brothers was exposed to the crisis last year, in September 2007.
On September 11, seven years ago, two planes crashed into the world trade center in New York, Lehman headquarters in the world trade center. They suffered heavy losses, but they also narrowly escaped death.
On the same day seven years later, Lehman's share price fell below 4 yuan, and it came to the moment of life and death again.
At the end of 2007, Lehman's total assets were about $700 billion, and the net value of the company after deducting various liabilities was about $20 billion, with a leverage ratio of 35 times. This year, that is, in the first half of 2008, the problem of Lehman's mortgage assets was gradually exposed, and the loss could reach $10 billion. The company lost its capital and turned into a net value of $10 billion to support $690 billion of assets, and the leverage ratio suddenly soared to nearly 70 times.
At this time, Lehman was already in danger. If there was a little trouble, Lehman would fall down.
At this time, the Korean Industrial Bank in East Asia, that is, KDB, was willing to inject capital into Lehman. As soon as the news came out, Lehman's share price immediately stabilized.
The main reason why KDB is willing to take advantage of Lehman Brothers at this time is that KDB's boss used to be the head of Lehman Korea branch and has feelings for his old boss.
At that time, KDB was willing to offer $26 A share, while Lehman insisted on $28. Dick Fuld, the head of Lehman Brothers, was really unwilling to "sell at a low price". After all, Lehman was quite profitable, with a profit of $4.2 billion in 2007. But that's the terrible thing about mobility - what's the use of showing eight ABS when the air is dry.
As a result, the delayed transaction finally dragged out a problem. On September 7, 2008, the U.S. government suddenly announced that it would take over Fannie and Freddie and insert $200 billion in preferred stock investment into their capital structure.
The next day, South Korean financial regulators expressed their opinions in the euphemism of the East: "KDB should treat the issue of capital injection into Lehman with great caution." then KDB issued a statement to terminate the negotiations with Lehman. So Lehman's share price fell sharply. What's more fatal is that no one lent to Lehman, and the liquidity will be cut off immediately.
Looking around, Goldman Sachs and Citigroup are struggling. * * * * has just eaten Bear Stearns and will not be interested in Lehman in a similar situation.
There are only two blind dates, Bank of America, a relatively simple and honest bank born in commercial bank, and Barclays Bank from Great Britain.
The weekend of mid September 2008 was just an ordinary holiday for many people on the planet, but it was the autumn of Lehman's life and death.
Before that, Bank of America and Merrill Lynch had been flirting for a long time. Merrill Lynch looked at the mortgage assets on its book and knew that if bank of America bought Lehman, the next short target of this financial vulture was itself. Bank of America is also unforgettable. It sat down at the negotiating table and talked with Lehman, but it always aimed at Merrill Lynch.
Can it be delayed? Without delay, Merrill Lynch resolutely gathered up his delicate body and took the room card handed over by Bank of America at the bottom of the table.
Knowing the good news of Merrill Lynch and Bank of America, Treasury elder Paulson was overjoyed and ordered both sides not to hesitate to complete the acquisition.
That weekend, old Paulson gathered all the executives of Wall Street giants to the Federal Reserve building and did two things. First, following the LTCM crisis in 1998, he asked Wall Street to set up a rescue team to buy Lehman's problem assets, and then the acquirer bought the rest of Lehman's assets; Second, finalize the deal to buy Lehman.
Dare Goldman Sachs tear down the old leader's platform? I'm sure not. So the rescue mission went surprisingly well. Seeing that Lehman was about to be saved, the merger was stuck in a seemingly insignificant section: Barclays is a British bank. Originally, according to British regulatory regulations, the merger and acquisition case needs to be voted by the general meeting of shareholders before it counts.
This is no different from US regulations, but the following one is fatal: until then, Barclays cannot guarantee Lehman's transaction because it will constitute a "substantive merger". The fastest time for shareholders to vote is a few days. During this period, Lehman has to open its business. If investors continue to withdraw their capital, Lehman is likely to fail to pass the M & A case and go bankrupt because the transaction cannot be settled.
Once, when old Paulson persuaded Dick Fuld, the latter replied, "I've been in charge of Lehman longer than you've been in charge of Goldman Sachs". That means very clearly. You're a hair!
So afterwards, some people said that it was because Fuld's consistent arrogance completely angered old Paulson. Others say that old Paulson just wanted to set an example to the greedy Wall Street. In short, old Paulson made it clear very early that the government should not pay for Lehman.
Hum, I just want to treat you as the chicken of that terrible monkey. What can you do to me? Your sister dares to say that about old paper. If old paper doesn't kill you, you're pretty!
However, old Paulson still has to do face work. He asked the British regulators to exempt the relevant regulations, but the Brits shook their head like a rattle: we have enough troubles in our own financial system. Open the back door to save an American investment bank? no way!
Now old Paulson has something to say. Have you seen it? I'm not fussy. I'm begging the British for you
However, when Barclays in turn persuaded the US government to change its mind, old Paulson's attitude was very firm - our country's financial system should not be easily damaged... The implication was very clear, no way!
As a result, the fate of Lehman Brothers as a chicken could not be changed. Lehman Brothers, 158, finally came to the end of its life.
The bankruptcy of Lehman Brothers finally made the subprime mortgage crisis rise into a global financial crisis!
The cruelty of the financial market is incisively and vividly reflected in the subprime mortgage crisis.
However, all this has nothing to do with the Dragon Fund. In front of him was John Paulson, and behind him were large investment banks such as Bear Stearns, Merrill Lynch and Lehman Brothers. Even if old Paulson wanted to dig deeply, he didn't have the energy to do these things.
Let alone, by January next year, Austria black carbon will come to power, and old Paulson's trip as Treasury Secretary will be completely over. He also checked a P!
Yang Jing knows these things clearly, but he can't say it now.
However, fortunately, the Dragon Fund performed well enough in the subprime mortgage crisis and made enough profits under the condition of ensuring concealment, which is enough.
As for John Paulson, although he also made a lot of money in the subprime mortgage crisis, a full $20 billion, and was called "empty God" by later generations, the little money made by Paulson fund really didn't let the Dragon Fund pay attention to it.
A mere $20 billion, not even a fraction of the profits of the Dragon Fund
"Well, we won't discuss this." Yang Jing clapped her hands, raised her glass again and said, "the Olympic Games will be held in Yanjing, China next month. Guys, who is interested in going to see the event with me?"
Henry and the three of them also raised their glasses. After touching and drinking with Yang Jing, Henry smiled and said, "boss, do you want to relax?"
Yang Jing shrugged her shoulders noncommittally, "I've been busy for so many years. I should give myself time to relax. Man, I can't always be as tight as a bow string. It's good for my health to relax properly. By the way, Mike has promised my invitation. He will fly directly to Yanjing next month, and we'll meet there. Guys, who will follow me to watch the Olympic Games?"
Henry looked at both sides, hesitated a little, then raised his hand and said, "count me. I think these little guys can graduate, so I'm going to take a holiday for myself."
Cesar said with a grin, "how can such a good thing leave me? I'll go too."
Yang Jing looked at David. David shook his head and said, "boss, I think I'd better stare here. There needs to be a seat here. And I'm not interested in the Olympic Games. Just go and see it."
Yang Jing looked at the three and finally smiled and said, "well, let's meet in Yanjing next month!"
To say, Lehman Brothers was really unlucky.Lehman Brothers was exposed to the crisis last year, in September 2007.On September 11, seven years ago, two planes crashed into the world trade center in New York, Lehman headquarters in the world trade center. They suffered heavy losses, but they also narrowly escaped death.On the same day seven years later, Lehman's share price fell below 4 yuan, and it came to the moment of life and death again.At the end of 2007, Lehman's total assets were about $700 billion, and the net value of the company after deducting various liabilities was about $20 billion, with a leverage ratio of 35 times. This year, that is, in the first half of 2008, the problem of Lehman's mortgage assets was gradually exposed, and the loss could reach $10 billion. The company lost its capital and turned into a net value of $10 billion to support $690 billion of assets, and the leverage ratio suddenly soared to nearly 70 times.At this time, Lehman was already in danger. If there was a little trouble, Lehman would fall down.At this time, the Korean Industrial Bank in East Asia, that is, KDB, was willing to inject capital into Lehman. As soon as the news came out, Lehman's share price immediately stabilized.The main reason why KDB is willing to take advantage of Lehman Brothers at this time is that KDB's boss used to be the head of Lehman Korea branch and has feelings for his old boss.At that time, KDB was willing to offer $26 A share, while Lehman insisted on $28. Dick Fuld, the head of Lehman Brothers, was really unwilling to "sell at a low price". After all, Lehman was quite profitable, with a profit of $4.2 billion in 2007. But that's the terrible thing about mobility - what's the use of showing eight ABS when the air is dry.As a result, the delayed transaction finally dragged out a problem. On September 7, 2008, the U.S. government suddenly announced that it would take over Fannie and Freddie and insert $200 billion in preferred stock investment into their capital structure.The next day, South Korean financial regulators expressed their opinions in the euphemism of the East: "KDB should treat the issue of capital injection into Lehman with great caution." then KDB issued a statement to terminate the negotiations with Lehman. So Lehman's share price fell sharply. What's more fatal is that no one lent to Lehman, and the liquidity will be cut off immediately.Looking around, Goldman Sachs and Citigroup are struggling. * * * * has just eaten Bear Stearns and will not be interested in Lehman in a similar situation.There are only two blind dates, Bank of America, a relatively simple and honest bank born in commercial bank, and Barclays Bank from Great Britain.The weekend of mid September 2008 was just an ordinary holiday for many people on the planet, but it was the autumn of Lehman's life and death.Before that, Bank of America and Merrill Lynch had been flirting for a long time. Merrill Lynch looked at the mortgage assets on its book and knew that if bank of America bought Lehman, the next short target of this financial vulture was itself. Bank of America is also unforgettable. It sat down at the negotiating table and talked with Lehman, but it always aimed at Merrill Lynch.Can it be delayed? Without delay, Merrill Lynch resolutely gathered up his delicate body and took the room card handed over by Bank of America at the bottom of the table.Knowing the good news of Merrill Lynch and Bank of America, Treasury elder Paulson was overjoyed and ordered both sides not to hesitate to complete the acquisition.That weekend, old Paulson gathered all the executives of Wall Street giants to the Federal Reserve building and did two things. First, following the LTCM crisis in 1998, he asked Wall Street to set up a rescue team to buy Lehman's problem assets, and then the acquirer bought the rest of Lehman's assets; Second, finalize the deal to buy Lehman.Dare Goldman Sachs tear down the old leader's platform? I'm sure not. So the rescue mission went surprisingly well. Seeing that Lehman was about to be saved, the merger was stuck in a seemingly insignificant section: Barclays is a British bank. Originally, according to British regulatory regulations, the merger and acquisition case needs to be voted by the general meeting of shareholders before it counts.This is no different from US regulations, but the following one is fatal: until then, Barclays cannot guarantee Lehman's transaction because it will constitute a "substantive merger". The fastest time for shareholders to vote is a few days. During this period, Lehman has to open its business. If investors continue to withdraw their capital, Lehman is likely to fail to pass the M & A case and go bankrupt because the transaction cannot be settled.Once, when old Paulson persuaded Dick Fuld, the latter replied, "I've been in charge of Lehman longer than you've been in charge of Goldman Sachs". That means very clearly. You're a hair!So afterwards, some people said that it was because Fuld's consistent arrogance completely angered old Paulson. Others say that old Paulson just wanted to set an example to the greedy Wall Street. In short, old Paulson made it clear very early that the government should not pay for Lehman.Hum, I just want to treat you as the chicken of that terrible monkey. What can you do to me? Your sister dares to say that about old paper. If old paper doesn't kill you, you're pretty!However, old Paulson still has to do face work. He asked the British regulators to exempt the relevant regulations, but the Brits shook their head like a rattle: we have enough troubles in our own financial system. Open the back door to save an American investment bank? no way!Now old Paulson has something to say. Have you seen it? I'm not fussy. I'm begging the British for youHowever, when Barclays in turn persuaded the US government to change its mind, old Paulson's attitude was very firm - our country's financial system should not be easily damaged... The implication was very clear, no way!As a result, the fate of Lehman Brothers as a chicken could not be changed. Lehman Brothers, 158, finally came to the end of its life.The bankruptcy of Lehman Brothers finally made the subprime mortgage crisis rise into a global financial crisis!The cruelty of the financial market is incisively and vividly reflected in the subprime mortgage crisis.However, all this has nothing to do with the Dragon Fund. In front of him was John Paulson, and behind him were large investment banks such as Bear Stearns, Merrill Lynch and Lehman Brothers. Even if old Paulson wanted to dig deeply, he didn't have the energy to do these things.Let alone, by January next year, Austria black carbon will come to power, and old Paulson's trip as Treasury Secretary will be completely over. He also checked a P!Yang Jing knows these things clearly, but he can't say it now.However, fortunately, the Dragon Fund performed well enough in the subprime mortgage crisis and made enough profits under the condition of ensuring concealment, which is enough.As for John Paulson, although he also made a lot of money in the subprime mortgage crisis, a full $20 billion, and was called "empty God" by later generations, the little money made by Paulson fund really didn't let the Dragon Fund pay attention to it.A mere $20 billion, not even a fraction of the profits of the Dragon Fund"Well, we won't discuss this." Yang Jing clapped her hands, raised her glass again and said, "the Olympic Games will be held in Yanjing, China next month. Guys, who is interested in going to see the event with me?"Henry and the three of them also raised their glasses. After touching and drinking with Yang Jing, Henry smiled and said, "boss, do you want to relax?"Yang Jing shrugged her shoulders noncommittally, "I've been busy for so many years. I should give myself time to relax. Man, I can't always be as tight as a bow string. It's good for my health to relax properly. By the way, Mike has promised my invitation. He will fly directly to Yanjing next month, and we'll meet there. Guys, who will follow me to watch the Olympic Games?"Henry looked at both sides, hesitated a little, then raised his hand and said, "count me. I think these little guys can graduate, so I'm going to take a holiday for myself."Cesar said with a grin, "how can such a good thing leave me? I'll go too."Yang Jing looked at David. David shook his head and said, "boss, I think I'd better stare here. There needs to be a seat here. And I'm not interested in the Olympic Games. Just go and see it."Yang Jing looked at the three and finally smiled and said, "well, let's meet in Yanjing next month!"
