Chapter 1667 No Fun

In the living room of the manor, Yang Dongxu held all the assets of Lehman Brothers and believed the report, his brows furrowed deeper and deeper.

Although he had estimated the situation of Lehman Brothers, after all, he was one of the driving forces behind the scenes.

But what he didn't expect was that after changing his identity from a promoter to a person who was trying to protect Lehman Brothers, things were much more difficult than he imagined.

First of all, if the avalanche starts, Lehman Brothers' debt ratio will reach a maximum of about 500 billion US dollars, which is still a conservative estimate.

If the situation becomes extremely bad and the market continues to deteriorate, and the assets held by Lehman Brothers further depreciate, then his replication rate is likely to reach a terrifying figure of more than 600 billion US dollars.

With such a huge debt, even if Yang Dongxu throws all his worth into it, it will not be enough to fill the hole. Such a bottomless pit can only be saved by economic powers such as the United States, China, and Europe using national banks to help Lehman Brothers.

At the same time, the current situation of Lehman Brothers is much more complicated than imagined. As the fourth largest investment bank in the United States, Lehman Brothers was known as the best investment bank in the world from 2000 to 2002.

Whether it is the funds operated by the investment bank or the complexity of various forces, it is far beyond Yang Dongxu's imagination.

For example, the financial business alone involves the Bank of England, the United States International Group, Goldman Sachs, Morgan Stanley and other financial groups.

Listen carefully, these are the world's leading financial groups, not individual investors, and Lehman has a deep involvement with each of them.

Add to that those small and medium-sized banks and investments, as well as individual investors, etc. The entire Lehman Brothers is now a hornet's nest, and a poke will definitely cause chaos in the world.

In addition to the partners who are entangled in the outside world like a tangled mess, and various interests are tied up.

Lehman Brothers is not peaceful inside. As a 157-year-old old consortium. Lehman Brothers can be said to have a long history.

Presumably, it is not much behind other consortiums with the same long history in the United States.

However, it is different from other consortiums that have an orderly inheritance and still control the power of the consortium in the hands of their own family even when encountering twists and turns.

For example, even though the Little Jack California Consortium is now half-dead, the power has not fallen into the hands of others.

But the situation inside Lehman Brothers is complicated. Before 1973, this consortium was still a family consortium, that is, the entire consortium belonged to the Lehman family.

However, when Robert, the helmsman of the Lehman family, died in 1969, he left a leadership vacuum in the entire consortium. Coupled with the economic downturn at the time, the Lehman consortium almost collapsed.

In 1973, Peter Pison, chairman and CEO of Bell & Howell, was hired to save the Lehman Group.

That is, from this year onwards, although the consortium's operating conditions have been getting better year by year, the Lehman family's control over the consortium has become weaker year by year.

In the end, the entire Lehman financial system was occupied by various forces at the top level, just like a joint conference. There was no clear person who made the final decision. Many things had to be discussed in meetings, and everyone expressed their opinions and finally voted to decide.

In other words, if Yang Dongxu wanted to cooperate with the Lehman consortium, he could not find the current head of the Lehman family and have an in-depth talk with the two to determine the general framework of cooperation.

This needs to go to the board of directors of the Lehman consortium. It is still unknown whether a group of old men and old ladies can come up with a decision after all the quarrels.

This is also the reason why many American consortiums look down on the Lehman consortium. After all, the entire family is about to be forced out of the core of the consortium, and there is only the reputation of the Lehman consortium.

If the time when Pitt was hired into the Lehman Group in 1973 is regarded as the end of the family control period in the Lehman consortium.

Then this consortium, whose management is like a parliament with various forces, is only 34 years old. In the eyes of many traditional old and powerful consortiums, this is just a little brat.

A little brat has a huge fortune, which is impossible not to be jealous. It is already a foregone conclusion that they will join forces to divide him.

And in another time and space, if you look closely at the Lehman consortium from its peak to its complete decline and bankruptcy application, you will find that almost the entire United States, and even the major forces in Europe and the United States are playing him.

For example, when the subprime mortgage crisis broke out, Fannie Mae, Freddie Mac, Bear Stearns and other companies were also in the vortex.

US officials claimed that these institutions were too large to be allowed to close down, otherwise it would affect social stability, so they used billions of dollars to rescue these companies.

When Lehman Brothers collapsed, they refused to rescue them, saying that Lehman Brothers had too much debt and the government was powerless.

And Lehman Brothers had brought this upon themselves. The government would not pay for this behavior, but would use the Lehman consortium as a negative example to warn others.

You should know that Lehman's application was flawed, and 20,000 employees lost their jobs directly. The direct and indirect impact on social unrest was greater than the combined impact of the bankruptcy of all companies such as Fannie Mae.

As a result, the reason that the US government used to rescue Fannie Mae and other companies, saying that the collapse would have a huge impact on society, could not be used on Lehman Brothers.

The collapse of Lehman Brothers caused the financial crisis to spread around the world. Wasn't this impact big enough?

For example, Merrill Lynch, the third largest investment bank in the United States, said that it could not rescue Lehman Brothers and was powerless.

On the other hand, it announced that it would spend nearly 50 billion US dollars to acquire Merrill Lynch, which was also in the whirlpool. Let this third largest investment bank successfully go ashore.

Moreover, after the acquisition of Merrill Lynch, Merrill Lynch's stock price plummeted 21%, and it lost one-fifth of its money and nearly 10 billion U.S. dollars just after buying it back, but the U.S. government looked indifferent.

Another example is the three giants that were most affected by the bankruptcy of Lehman Brothers: Goldman Sachs, Morgan Stanley, and American International Group.

At the beginning, it seemed that they were all affected by Lehman Brothers, and they looked precarious and might follow in the footsteps of Lehman Group and declare bankruptcy.

As a result, after Lehman Brothers went bankrupt, the U.S. government and the Federal Reserve took action again, first investing nearly 200 billion U.S. dollars to insure American International Group, the largest insurance company in Europe and the United States.

At the same time, Goldman Sachs and Morgan Stanley, both in crisis, made bank holding requests to the Federal Reserve Board. Lehman Brothers also made this request.

But the U.S. government helped Merrill Lynch, Fannie Mae, Freddie Mac, Goldman Sachs, and Morgan Stanley, but it rejected Lehman Brothers.

Allocating some of the money to help these people to Lehman Brothers can help him tide over the difficulties. You must know that before Lehman Brothers filed for bankruptcy, it still had a lot of high-quality assets. After all, this was a consortium, the best investment bank in the world in 2002.

An even more dramatic scene was before Lehman Brothers went bankrupt.

U.S. Treasury Secretary Paulson and Securities and Exchange Commission Chairman Cox. As well as senior executives from Citigroup, JPMorgan Chase, Morgan Stanley, Goldman Sachs, Merrill Lynch and other companies gathered at the New York Federal Reserve Bank headquarters in Manhattan for three consecutive days.

It is said that it is studying how to rescue Lehman Brothers, which is facing bankruptcy, in order to prevent the credit crisis from worsening further.

Don’t you think it’s funny? Goldman Sachs, Morgan Stanley, and Merrill Lynch, which were implicated by Lehman and still in the vortex of the subprime mortgage crisis, looked like they were about to go bankrupt, but ended up standing there. The savior side said it would save Lehman Brothers.

The result of the study is that Treasury Secretary Paulson opposed the use of government funds to rescue Lehman Brothers from its financial crisis.

Before their study, Barclays, the third largest bank in the UK, was prepared to assist Lehman Brothers because it held a lot of Lehman Brothers bonds, and would suffer a lot if Lehman Brothers went bankrupt.

At the same time, Lehman Brothers is definitely worth saving. After all, this is a complete consortium. After the rescue, Barclays Bank will make a lot of money by controlling this consortium.

As a result, both parties originally entered negotiations, and the US Treasury Secretary announced that he refused to rescue Lehman Brothers. Then Barclays pulled out of bailing out Lehman Brothers. This caused the market value of Remai Brothers' stock to drop by 94%.

At the same time, the Bank of America is also interested in Lehman Brothers during this negotiation and is preparing to join the Bank of America in rescuing Lehman Brothers.

After Barclays announced it was withdrawing from its bailout of Lehman Brothers. The Bank of America also withdrew without hesitation, and then three hours later, it backhandedly acquired Merrill Lynch, pulling this little brother directly out of the whirlpool.

Then Lehman Brothers sued Morgan Stanley, accusing the other party of illegally extracting billions of dollars from Lehman Brothers' assets on the eve of its bankruptcy filing.

At the same time, he was working with Lehman Brothers, Goldman Sachs, and Morgan Stanley. Both companies appear to be losing money, but in fact they are both making profits.

As a result, now all the debts are borne by Lehman Brothers, and Goldman Sachs and Morgan Stanley, which originally seemed to be implicated and almost went bankrupt, are secretly making a lot of money.

However, this accusation was dropped in the end. After all, after the bankruptcy, Lehman Brothers did not have the capital to clamor with these two companies.

In the end, Lehman Brothers completely went bankrupt and turned into a carve-up feast. Nomura Holdings, Japan's largest securities company, acquired Lehman Brothers' businesses in Asia-Pacific (except South Korea), Europe and the Middle East, and finally bought its Indian business.

EDF, a subsidiary of French power giant EDF, has acquired L.P., a subsidiary of Lehman Brothers.

Then private operating capital BCL and H-F invested US$2.15 billion at a bargain price and took away almost all the investment management business of Lehman Brothers.

From then on, a once-prominent American conglomerate was dismembered and fell into pieces.

As a result of the entire subprime mortgage crisis that affected the world, Lehman Brothers took over everything. At the same time, the major financial groups also took advantage of a little monster and took away Bear Stearns as a dessert.

So to sum up the whole story of the bankruptcy of Lehman Brothers in another time and space, Yang Dongxu wants to stand on the side of Lehman Brothers and fight against not only a few established consortiums in the United States.

Instead, they are hostile to almost all of Europe and the United States, plus Japan and other consortiums.

Dealing with just one American consortium is enough to give him a headache. If several of them join forces, he has no chance of winning. Plus other European and American consortiums, and Japanese consortiums.

Yang Dongxu suddenly felt like he was still wearing new clothes, holding a small wooden sword in his hand and had just come out of the novice village, and was about to face the final boss of the game.

And what he faced was not the ultimate BOSS, but a group of consortiums that stood at the top of the pyramid in this world.

"What a joke!"

Yang Dongxu pinched his eyebrows and threw the information in his hand on the table in front of him.