Chapter 2753 Emergency Adjustment

Li Ruiyuan pressed the enter key on the computer again and took a big sip of unsweetened bitter coffee. Only then did he have the chance to look up at John across from him, "How is it?"

This year's most dazzling figure on Wall Street, a shining star who made everyone from Jamie Dimon to Raul Blankfein lose their temper, now looks completely different from what everyone thinks.

Not only did he not wear a suit, but he also didn't wear a tie. Even the sleeves of his shirt were rolled up, and they were rolled up randomly without any rules.

"It's going well," John said, looking up.

The answer was very positive and his expression was very excited, but his face was tired. He looked like a college student who had been playing games for 20 hours in a row in a dimly lit Internet cafe.

The difference is that every click of his mouse can bring in a lot of money.

He also picked up his coffee cup and immediately shouted, "Mary, I want coffee,"

The originally leisurely front desk girl has been busier than ever in the past two days. Although she is still dressed fashionably and beautifully, she is now doing a job similar to that of a waitress in a cafe, or the kind of cafe that has booming business but only has her as a waitress.

At this time, her usual gentleness, intelligence, and calmness were not seen. She was holding a tray full of coffee cups and walking quickly. She replied loudly, "I know, I'll come!"

Where is there any gentleness?

John smiled helplessly at Li Ruiyuan, "This reminds me of the situation in Valletta after giving birth to our second child."

Li Ruiyuan smiled. Such high-intensity work is really the easiest to strip off a person's packaging and reveal his true nature.

Speaking of which, it is really not Mary's fault. The United Fund, which has always been relaxed, now looks like a battlefield in full swing. All employees are desperately dealing with the contracts in hand. Didn't you see Li Ruiyuan and John both join the front line?

Because they mainly carry out the tasks assigned by Feng Yiping, the business is relatively single and there is more free time. Therefore, the disadvantage of having fewer employees is revealed at this moment. When encountering such a surge in the amount of business that needs to be handled, the manpower is a bit stretched.

And such a busyness is naturally caused by a series of subsequent events caused by Lehman's bankruptcy announcement on Sunday.

As Feng Yiping said to Lord, after the public learned that the country had finally said no to Wall Street and refused to pay for their own mistakes, social networking sites, including some media, welcomed this.

This even dispelled Paulson's pessimism, who was worried before. Just after the news of Lehman's bankruptcy was announced, he had received calls from many senior officials of the allies.

From last year to this year, the opportunities for meeting have greatly increased, and the contacts between each other have become more and more frequent. All the finance ministers of the G7 group have called him without missing a single one, and their attitudes were unprecedentedly consistent: Unbelievable!

Why did you let Lehman go bankrupt? Why didn't you inform us in advance?

Although Paulson repeatedly explained to them, "We made the most correct choice,"

the unanimous criticism of international peers deepened his concerns about the situation that was not optimistic to begin with.

These voices of support from the public undoubtedly made him feel a lot more at ease.

But soon, the situation took a sharp turn for the worse.

As Feng Yiping expected, the market immediately gave a completely different reaction.

After the opening of the U.S. stock market, the Dow Jones Index plummeted rapidly!

Lehman's bankruptcy was completely different from the impact that Bear Stearns and Fannie and Freddie Mac had on the market.

In both the Fannie and Freddie Mac and Bear Stearns, the final result was that equity investors almost lost everything, but the rights and interests of creditors were effectively protected.

This time, even the rights and interests of creditors could not be preserved - except for those institutions that took Lehman's collateral, that is, its savvy peers.

Another message it brought to the market was that it turned out that the government was really likely to leave such a huge financial institution alone.

Yes, before this, not only Fuld and his team believed that the government would definitely bail them out in the end, but also many people, although they hated these investment banks on Wall Street, actually believed in their hearts that the government should not watch them go bankrupt.

But Paulson and his team did just that.

What does this mean?

For ordinary people, this actually means that from now on, all financial companies are not safe.

So, just as Feng Yiping said, and just as Ratan Tata did, everyone withdrew their investments in financial companies.

Considering the impracticality of withdrawing all the cash from the account - the United States has long eliminated large cash transactions and the security risks brought by holding a large amount of cash, most people have made the same choice, turning the assets realized after withdrawing investment and the assets in the original bank accounts - after all, it is not just one or two banks that have collapsed, but as many as dozens of banks, all into US Treasury bonds.

If US Treasury bonds are not safe, then they really accept their fate.

Because if it really comes to that point, the United States may no longer exist, and even if you hold a lot of US dollars, it will not help, because in that case, the US dollar will return to its original meaning - no matter how big or small the denomination is, it is actually paper.

But when ordinary people were cashing out their investments, it was also the time for financial speculators to show their skills. Unlike Feng Yiping's long-planned short selling, which was just a simple short selling, many hedge funds took the opportunity to attack financial institutions frantically, using all means to create greater panic.

Not only the United States, but also many financial institutions in many countries such as Britain, France, Belgium, Iceland, and Japan were pushed to the edge of the cliff.

On the second day after Lehman's bankruptcy, AIG could no longer hold on. With no hope of self-rescue, they issued an ultimatum to the US government in a very desperate manner: we can't do it anymore. If the government doesn't give us life-saving money, then we have no choice but to follow in Lehman's footsteps.

As soon as the news came out, the market was in an uproar. This is AIG!

Especially those people who were insured by AIG were all panicked at this time. If it collapsed, what should we do?

Although Paulson and his team had to quickly provide AIG with a life-saving $85 billion to appease the public, more institutional investors began to withdraw after the details of the capital injection were disclosed.

Although it was not good to let it go bankrupt like Lehman, Paulson and his team probably did not appreciate such a single man's blackmail.

Therefore, the interest rate of the emergency loan they provided was 8.5% higher than the benchmark interest rate!

This means that AIG has to pay more than $7 billion in interest every year because of this emergency loan!

This is completely a genuine loan shark.

In addition, the government also obtained 79.9% of its shares, which once again means that the original shareholders' rights will become almost worthless...

In this case, as of today, Wednesday, the US stock market continued to fall rapidly. Shortly after the opening, the Dow Jones Index plunged more than 500 points, and the stock prices of banks plummeted.

Among the only two remaining banks in the five major investment banks on Wall Street, Goldman Sachs' stock price plummeted by 20%, and Morgan Stanley's stock price even fell below $20 - it seems that this will be another Lehman!

This in turn exacerbated the run on investment, and bank stocks became a complete plague.

…………

At this time, over the Pacific Ocean, Feng Yiping was frowning and looking at relevant information.

The main reason he flew to the United States was that he received a call from Lord, "Feng, I think we have to implement our agreement as soon as possible."

Lord's call was also the direct reason why United Fund was so busy.

Feng Yiping, who originally wanted to maximize the benefits of the contracts he held, immediately notified Li Ruiyuan after receiving Lord's call: do his best to deal with the contracts he held.

Because he considered that even Goldman Sachs could not hold on, and so many banks in so many countries seemed to be in danger, it was estimated that the regulators might take further intervention measures.

Among the ways to curb the deterioration of the current situation, the simplest and crudest one is to prohibit short selling.

Considering the current situation, he believed that those who had been talking about not intervening in the market might really come up with such measures.

If before that, some contracts of the United Fund were held in hand because they were still waiting for the greatest benefits, they would most likely be frozen.

He called Li Ruiyuan again, "Mr. Li, how is it being handled?"

"My request is still the same, don't hesitate, be quick, okay?"