Chapter 157 The Big Winner
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Sergey set a new goal for Mikhail, which is to make Colombia a top financial institution that the U.S. government cannot shake. Only in this way, Sergey, together with the Gorky Brotherhood, will be completely safe. In order to achieve this, Columbia Bank is required not only to have money, but also to be able to affect the economic situation in the United States and the lives of most ordinary people in the United States, because only in this way, no matter who is the president of the United States and wants to move the Gorky Brotherhood, he must Weigh the consequences of doing so can bear it.
When it comes to affecting the lives of most Americans, we have to start with the industries that provide the most job opportunities. Therefore, industries that provide a lot of employment and tax revenue, such as manufacturing, catering, and consumer industries, are naturally the first ones that Seryozha wants to collect. Right now, during the stock market crash, if nothing else, the global stock market will continue to drop, which provides an excellent opportunity for Seryozha's acquisition.
After careful consideration, Sergey set the first batch of targets on McDonald's, the restaurant chain company all over the world, Philip Morris, the parent company of Marlboro, and Kraft Foods, the second largest food company in the world. Why are these three companies? Sergey actually has deep considerations. Now Glencore’s grain business is very large. It is a bit simple to rely on the trade with the Soviet Union for so much grain, so Sergey must be in The consumer side finds companies that can consume these grains, and McDonald's and Kraft are the best choices. Although McDonald's is a humble fast food chain company, it is the largest buyer of flour, the largest buyer of ground beef, the largest buyer of cabbage and tomato in the United States. In some ways, McDonald's is the ideal partner for Glencore's agricultural arm. Because of McDonald's strong position on the consumer side, he can require the largest meat supplier in the United States to produce ground beef according to its standards, which must include feed. This provides an excellent sales channel for Glencore. Kraft Foods also has a similar effect. Although their products range from oatmeal, to biscuits, peanut butter, etc., the basic raw material for these things is actually just grain. Part of Glencore’s agricultural production capacity, and after Kraft’s secondary production, the resulting products are then shipped to the Soviet Union, and the profits are much higher than simply transporting grain to the Soviet Union. As for Philip Morris, it is because the main production area of tobacco is in Latin America, and it will be more convenient to transfer funds to drug lords in Colombia by relying on the tobacco trade.
These three companies may seem inconspicuous, but they all have good cash flow. Even if the economy declines, the impact on these industries will be minimal, and these three companies are definitely called cash cows. Seryosha can use the funds of these enterprises to continue to acquire more enterprises after acquiring these enterprises. Buying all three of these companies is nearly impossible when the stock market is good, but when the stock price is down and everyone is selling, it becomes much easier.
Relying on the relationship of the Blackstone Group, Seryozha quickly got in touch with McDonald's, Kraft Foods, and the major shareholders of Philip Morris' board of directors who intend to sell. At first, they were lucky about the U.S. stock market, but the market soon told them It is better to recognize the reality, so after repeated negotiations, Columbia Bank and Blackstone Group jointly acquired the controlling stakes of these three companies. In the case of the stock market decline, the three companies have spent a total of US$20 billion in Columbia Bank.
At the same time, with the help of this stock market crash, Eva's Yota Communications began to take up 10% of the shares of AT&T, while Karim and Tonya in Europe continued to expand their popularity among the public. The right to speak of the board of directors extended its hand to the National Grid Corporation of the United Kingdom.
As a new participant in the European and North American markets, the acquisition of Columbia Bank quickly attracted the attention of the American financial circles. If it weren't for the severe setback in the market, the large financial institutions behind these companies would not have allowed Columbia Bank to succeed so easily. With the acquisition of controlling stakes in the three companies, Columbia Bank finally has a downstream company that it can trade with. All three companies are in consumer industries with good cash flows, and although they are not profitable, they have stable performance. It can bring stable cash income to Columbia Bank, and in the long run, this deal is still a good deal.
With the continuous decline of US and global stock markets, the Federal Reserve and the US Treasury finally can't sit still. At the request of large financial institutions such as Goldman Sachs, the Federal Reserve began to inject capital into large financial institutions in the United States. In this way, large-scale financial institutions were urged to intervene in the U.S. stock market to prevent further deterioration of the market. These large financial institutions naturally include the five largest investment banks in the United States. The Columbia Bank is only greedy. Although the funds provided by the Federal Reserve have certain interest, for top predators like Goldman Sachs and Morgan Stanley, these interests are almost completely negligible costs. Taxpayers' money is used to buy those blue-chip stocks and blue-chip stocks in the U.S. stock market. Thereby further strengthening the control over the US economy. This matter is not fair at all, but the government has to do it. So every financial crisis can only make Wall Street more and more powerful. Even the US government has to serve them.
This incident made Mikhail deeply understand what Seryozha meant when he said it was too big to fail. In this stock market crash, Columbia Bank ate McDonald's, Kraft Foods and Philip Morris. But how many companies do Goldman Sachs and Morgan Stanley control? Mikhail was well aware of this. Most importantly, Goldman Sachs and Morgenstern used US government money, while Columbia Bank used its own money. Moreover, General Electric, the jewel in the crown of the American manufacturing industry, has always been firmly controlled by Morgan Stanley. No matter how much money Columbia Bank spends, it is impossible to obtain control of this company. The status is always the biggest winner.
Mikhail now understands what he is doing in the United States. Compared with the hunting jungles of the American capital market, the part-time job in the Japanese market is a zoo. When one day the Federal Reserve has to rely on the Columbia Bank to save the global economy, the Gorky Brotherhood will be completely invincible.