Chapter 554: Earning Money with Tears
In fact, now, Fan Bingbing no longer needs to be an actor as her career as before.
Because in fact, Fan Bingbing has now become capital. Not only after she gave birth to a child, Barron has transferred his 15% of Huayi Company shares held through Rich23 Capital to Fan Bingbing, and Tianhe Capital itself is registered in China under Fan Bingbing's identity - although the actual control of this company is not her, but Fan Bingbing still has a lot of say in Tianhe Film and Television Investment.
The reason why she will still participate in "Succession" and the later "007: Quantum of Solace" is also to increase Fan Bingbing's international popularity.
It can be said that she is now on a different level from those ordinary stars.
Later, Fan Bingbing will gradually change her role from a star to an investor and producer - similar to the change next to Zhao Fite, but at this time Fan Bingbing's background is much stronger than Zhao Fite, and she will not use her low capital operation methods.
Fan Bingbing herself is very good at dealing with people, or in other words, she has a high emotional intelligence - this can be seen from the fact that she handled the relationship with the media very well in the original time and space. Even after being banned for some reasons, there was almost no one in the circle who took advantage of her. On the contrary, many people owed her favors and eventually became resources for her brother. It can also be seen that she did a good job in dealing with people.
Even the host who triggered the incident once admitted that he was mainly targeting the grievances with Feng Kuazi and the parties related to the movie. Fan Bingbing was just involved and admitted that she was a very good person.
Therefore, as Barron's spokesperson in China, Fan Bingbing will also do what she is good at, that is, as an "image spokesperson" to come forward to make some investments and maintain relationships. As for business decisions and management matters, she does not need to handle them personally, just leave it to professionals.
In general, Fan Bingbing's role is similar to that of Ivanta in the United States. The difference is that Ivanta's family background can give her more possibilities, and thus she will bear more responsibilities in IC Capital.
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On August 1, 2007, stockholders began to file the first lawsuit against Bear Stearns for the plunge of its hedge fund. Bear Stearns, one of the five major investment banks on Wall Street, began to fall into trouble.
On August 8, BNP Paribas announced that it would stop the withdrawal business of their money market fund investors due to the problems caused by the US subprime mortgage crisis...
In fact, even though they were willing to start negotiations on the CDO betting contracts held by the Black Swan Fund, Goldman Sachs and Morgan Stanley still did not show too decisive side.
Goldman Sachs was still good. They finally reached an agreement with the Black Swan Fund on August 10. At this time, their betting agreement, Goldman Sachs's book loss has reached as high as 2.5 billion US dollars!
Black Swan Fund made some concessions and agreed to settle the bet agreement with Goldman Sachs at a price of $2 billion, which finally gave Goldman Sachs a chance to stop losses in time.
"What I want to know is, do you still have subprime bond insurance (CDS)? We will buy a lot."
This is what the other party's senior vice president said to Black Swan Fund CEO Phelan O'Neill after the bet agreement with Goldman Sachs was settled.
"We have a part, but you know, these CDS now have a different price every day..."
"That's not a problem, we just want to complete the transaction immediately!"
Obviously, Goldman Sachs' attitude shows that after stopping losses in time, they have begun to turn their guns to those investment banks that sold more subprime loan obligations (CDO) - those friends they once fought in the same trench...
Maybe it's wrong to say that, there is no such thing as friends in the financial field.
And Phelan O'Neill is right. The current CDS insurance bonds are indeed priced every day, and even have a huge increase on the same day.
For example, some of their CDS insurance policies were initially valued at 0.5%, but now they have risen to more than 30%...
This means that they only had to spend $500,000 to buy a policy with a $100 million insurance amount (insurance for $100 million of subprime mortgages), but now this policy can be sold for 30% of $100 million, or $30 million!
Of course, you may also wait until later to claim the $100 million insurance in full from the insurance company...
But both Ferran O'Neill and Barron understand that the total amount of insurance policies they hold is an astronomical figure, and at the beginning, because of the hot real estate market, no one thought that these policies had a chance to be claimed, so the price they bought these policies was negligible relative to their total amount.
Even if only one-fifth of these policies in their hands, or even one-tenth of them, can be claimed, I am afraid that those currently large-scale insurance companies would rather choose bankruptcy...
Therefore, it is better to sell at the current 30% or 35%... Anyway, they can already make a lot of money at a price, at least they can lock in the profit and invest the funds in the next round of short selling.
As for why banks and investment banks including Goldman Sachs, Morgan Stanley and UBS are willing to buy these insurance policies?
Of course, on the one hand, their power on Wall Street is enough to get enough claims from those insurance companies, even if they cannot honor the claims 100%, because a lot of the money they lose comes from the funds they manage, which is also explained to their investors...
Of course, it is not only Goldman Sachs or Morgan Stanley that want to buy these insurance policies now. Almost all investment banks that have sold large amounts of subprime mortgage debt (CDO) have begun to frantically buy those CDS, trying to make up for some losses or run faster than others.
In the words of Ferran O'Neill, what these investment banks are doing now is like "purchasing fire insurance for a burning house in a desperate manner"...
In the end, the Black Swan Fund received $2 billion in "betting agreement" compensation from Goldman Sachs, and sold CDS insurance policies with a total compensation of $10 billion at 30% of the value...
This also means that the Black Swan Fund received $5 billion from Goldman Sachs, and the cost they paid can be almost ignored...
At the same time, Goldman Sachs should be grateful enough, after all, if things go wrong, the CDS insurance policies they bought will be enough to offset their losses, or even make a profit, and they are not reluctant to offer their "sincere friendship" to the Black Swan Fund.
As for Morgan Stanley, their actions will be slower than Goldman Sachs.
Until August 19, a week after Black Swan Fund reached an agreement with Goldman Sachs and sold CDS, their bet agreement with Black Swan Fund had caused them a book loss of more than $4 billion...
They finally had to face reality and completed the liquidation of the bet agreement with Black Swan Fund at a price of $3.5 billion...
At the same time, in order to express its friendship, Black Swan Fund was kind enough to sell a CDS insurance policy with a total compensation of $10 billion to Morgan Stanley at 35% of the value...
Under Morgan Stanley's grateful eyes, Black Swan Fund made a profit of $7 billion with tears in its eyes.
In this way, Goldman Sachs and Morgan Stanley, Black Swan Fund has already received $12 billion from these two companies. If it had been said a year ago, or even half a year ago, no one would have believed it.
But even so, Goldman Sachs and Morgan Stanley still have the opportunity to minimize their losses from the CDS they bought and the subsequent short selling, and may even make a little profit.
So who lost?