Chapter 571 Withdrawal of Funds

The British government's acceptance of Standard Chartered Bank's acquisition of Northern Rock Bank also shows that Barron's proposal was accepted by Chancellor of the Exchequer Darling.

They will allocate 50 billion pounds of funds from the Bank of England and related funds managed by the government, of which 25 billion pounds will be invested in a custodial account specially established by the DS Group and supervised by the Ministry of Finance and the Financial Services Authority. This account will be operated by the newly established British Fortune Time Fund (BFT Fund) of the DS Group.

According to the undisclosed agreement signed between the DS Group and the British government, they will use the assets held by DS Holdings (Cavendish Trust Fund) as collateral and need to return 50 billion pounds and corresponding interest from this fund to the relevant banks and institutions within 3 years. If the funds in the account of the British Fortune Time Fund are insufficient to pay the amount, it will be sold from the shares held by the Cavendish Trust Fund to make up for it.

The other 25 billion pounds of the 50 billion pounds was used in the name of the Cavendish Trust to purchase Standard Chartered Bank's convertible bonds. Standard Chartered Bank then used its own funds to pay for the purchase of Northern Rock Bank's shares and privatization of 500 million pounds (in fact, because DS Group had previously purchased some Northern Rock Bank shares at a low price, these shares will replace some of Standard Chartered Bank's newly issued shares) and 25 billion pounds of interest. In addition, the 25 billion pounds of funds obtained from the convertible bonds sold to the Cavendish Trust were returned to the Bank of England.

In the future, when the situation is appropriate, the Cavendish Trust will exercise the power to convert common shares and convert the 25 billion pounds of Standard Chartered Bank convertible bonds into its shares.

After completing the acquisition of Northern Rock Bank, the name Northern Rock will no longer be used.

Standard Chartered Bank will reorganize Northern Rock Bank and integrate its business into Standard Chartered Bank's own business. In this way, they have also greatly increased their business in the UK. Before this, Standard Chartered Bank's main business was concentrated in emerging markets such as Asia, Africa and South America. The business in the UK was very small. If it was not headquartered in London, it could not be called a British bank.

As for the original management of Northern Rock Bank, all of them were cleaned up, and managers were re-sent from Standard Chartered Bank. After that, Standard Chartered Bank's British branch will adopt a more stable management style and will no longer be as radical as the previous Northern Rock Bank. Their current priority is to sort out the business of Northern Rock Bank and put it on the right track.

…

At this time, after his 28th birthday, Barron and Earl Bute's families went to America together.

Earlier, after Countess Chris gave birth to Barron's second child, he promised to take her out for a trip.

Just at this time, Earl Butt was also going to visit his sister Jenny Butt.

"Isn't John here?"

After seeing his sister Jenny, Earl Butt asked.

Hearing her brother's question, Jenny Butt retracted her gaze from Barron, picked up little Daniel, who was less than three months old, and said to her brother unhappily:

"He? Since becoming the chairman of the Sinclair Group, there are endless things to do every day. I'm too bored over there. It's better to come to New York to relax."

Hearing his sister's complaints, Ian Butt shrugged and said:

"You have been married for so long, you can have a child first, so you won't be so bored..."

He looked around his children:

"With children, the family will be much warmer."

"Wow, Ian, your tone of voice is getting worse and worse. The more you look like your father, the more you look like an antique."

She didn't give her brother any face at all, and took Chris's hand and said:

"Women are not just tools for reproduction, dear Chris, why don't we go out shopping together? By the way, Barron, didn't you just say you were going out for a while? Just take us with you..."

Barron didn't mean to intervene in their conversation, but after hearing Jenny's words, he glanced at Bonnie and said:

"You guys should go and relax together, I'm just on my way."

He was going to the New York branch of DS Group, and happened to meet with Lloyd, CEO of Goldman Sachs Group, there.

It can be said that this subprime mortgage crisis has caused heavy losses to the five major investment banks on Wall Street, and Goldman Sachs Group is the one with the least loss.

This also comes from the ancestral art of Goldman Sachs Group - being flexible and adaptable.

After seeing the bad situation, they immediately changed sides. They not only sold the CDO bonds in their hands immediately, but also decisively withdrew the bet agreement with the Black Swan Fund and admitted defeat.

Next, they turned to short selling, which seemed to be able to not only offset the previous losses, but also make a small profit.

Morgan Stanley is in a similar situation to Goldman Sachs. They also dealt with it in a timely manner. Although there were losses, compared with the other three investment banks, it can be said to be very minor.

"Your Highness, you should know that this subprime mortgage crisis has caused us a lot of losses. The third quarter revenue announced earlier has declined compared with last year. In the fourth quarter, we need a bright report..."

Lloyd didn't say much nonsense. He got straight to the point and directly put forward his purpose, which is to hope that the Zeuss Fund, which is jointly owned by both parties, can distribute dividends in the fourth quarter. This will ensure that after the increase in dividend income, the overall profit of Goldman Sachs Group in the fourth quarter will be very good.

At the beginning, DS Group and Goldman Sachs Group jointly established Zeuss Investment Company in a ratio of 6:4. The Zeuss Fund specializes in high-frequency trading in the American market.

After this fund performed well and obtained very good returns, both parties subsequently increased their investment in it. At present, the total size of the Zeuss Fund has exceeded 3.5 billion US dollars!

According to Lloyd's idea, he hopes to take out 2.5 billion US dollars of it for dividends - because since October, the US stock market has continued to decline, he believes that it will affect the rate of return of the Zeuss Fund, it is better to temporarily distribute dividends to help Goldman Sachs get a good financial report in the fourth quarter of this year, so that their stock price will have a strong performance.

Barron naturally understands that for Lloyd, hoping that Goldman Sachs' performance will be good is one aspect, and the most important thing is that his personal income, which accounts for a large proportion of dividends and equity incentives, is linked to Goldman Sachs' performance. Under such circumstances this year, he naturally hopes to achieve overall performance through some means.

"That's no problem. If Goldman Sachs needs this income, then Zeuss Fund can distribute your share as dividends. However, as for DS Group, we don't have a better investment target for the time being, so we will still choose to keep it in Zeuss Fund..."

Barron's words surprised Lloyd a little, and he also knew that if this was the case, DS Group's investment ratio in Zeuss Fund would be much higher than Goldman Sachs...

But after thinking for a moment, he nodded:

"Let's do it."