Chapter 1790: Brother Rayman Goes Bankrupt (3/10)

With the deterioration of the global economy and the continued depreciation of the US dollar, the decline in the US stock market is still unstoppable. Although it seems that the daily decline is not large, only a few tenths of a percent, but the daily decline cannot be suppressed.

In particular, companies in the financial industry almost all led the decline. The stock prices of several major commercial banks and financial investment companies in the United States simply cannot rise.

Although the U.S. government and the world's major banking institutions are injecting capital, they still cannot save the market.

The more chaotic the market, the more extreme the methods adopted by those financial investment companies will be. There is no way, I have already lost too much, and if I don't adopt some extreme investment methods, I can't turn around at all.

Rather than doomed to failure and lingering, it is better to take a gamble. If it succeeds, it will not only turn around successfully, but even make a lot of profits.

In the U.S. financial market at this time, the vast majority of high leverage emerged from U.S. financial companies in order to attract more investment so that they could earn more profits and fill in the shortfall.

More and more junk bonds appeared in the market, and many bonds that used to be worth gold have now become a piece of scrap paper, and Xiao Bushi was devastated by this.

In addition, those candidates are still constantly attacking them at this time, which makes the candidates sent by them very embarrassed.

But Xiao Bushi has no time to pay attention to these things. What he wants most now is to prevent the situation from getting worse before he leaves office. It is best that the market collapses completely after the successor takes office, so that the responsibility is not his.

If it can become like this, maybe the successor can be impeached, which is in their best interest. Anyway, in his opinion, even if the US financial market collapses, no other country can surpass the US. After all, this is the most mature and advanced financial market in the world, and the US is the world's largest country.

Moreover, the financial market in the United States has encountered a blow, and other financial markets are also inevitable. Whether it is the financial markets in Europe or Asia, it will be affected to some extent. The financial market, which is basically unaffected, is particularly closed. And the particularly closed financial market is not prosperous enough at all.

"Mr. President, it seems that we are in big trouble!" The Secretary of State came in to report.

"What's the matter?" Xiao Bushi now hears a lot of bad news every day, which makes him burnt out.

"Two more financial companies have filed for bankruptcy protection, and one has directly declared bankruptcy!"

Sure enough, another bad news. In the past six months, he has heard too many similar news, so can't there be some news that makes him happy?

"Is it large? Are there serious implications for other financial institutions?"

"The scale is not large, but it has a great impact on the industry. Among them, Rayman Brothers is the most serious. They lost 2.8 billion US dollars in the first quarter, lost 4.1 billion US dollars in the second quarter, and are expected to lose in the third quarter. It will exceed eight billion dollars!"

"There are rumors that Goldman Sachs is manipulating the stock price behind the scenes. The bankruptcy of Bear Stearns in the first quarter also has a great relationship with Goldman Sachs, but there is no concrete evidence."

"Originally Barclays Bank planned to acquire Lehman Brothers, but after verification, the cash reserves of Lehman Brothers at this time were less than 100 million U.S. dollars, which is incredible for a financial institution of this size. But at this time, the debt of Lehman Brothers , has exceeded 500 billion U.S. dollars, and is already insolvent!"

Xiaobu was shocked. The first two months hadn't been so serious. How could the debt exceed 500 billion US dollars? This is the fourth largest investment bank in the United States, and it was once famous.

If the loss doubles and rises, will the debt also double and rise? The government has given so much emergency funds and returned so many loans, isn't it all in vain?

What does insolvency mean? Xiao Bushi knows very well that all insolvent companies have to go bankrupt in the end.

Lehman Brothers posted a loss for the first time since it went public in 1994, and it never recovered. Obviously in the fourth quarter of last year,

The company is still making profits. Could it be that they have had serious financial problems for a long time, but they have been covering them up through financial means?

But it shouldn't be that the company can't bear it when it starts to lose money. How can this company's ability to withstand pressure be so poor?

But thinking about Bear Stearns, which went bankrupt two months ago, it might be understandable.

Last year, the market value of Bear Stearns was close to 20 billion U.S. dollars, and it was extremely prosperous. However, two months ago, when Bear Stearns went bankrupt and sold off, it only sold for more than 200 million U.S. dollars, and its assets shrank by more than 95%. , the stock price has already fallen below the issue price.

The bankruptcy of Bear Stearns was not only because they held a large amount of CDOs, but also because of the advent of the financial crisis, a large number of investors concentrated on cashing out, making their cash suddenly reduced to zero!

How can a financial institution survive with zero cash reserves? So in March, the company's stock price fell from more than 60 US dollars to less than 3 US dollars in just a few days.

Of course Feng Yu is involved here, but it is Goldman Sachs who is behind it. Who made Feng Yu's investment be the leverage provided by a financial company under Goldman Sachs?

The U.S. government provided Bear Stearns with an emergency loan of 30 billion U.S. dollars. Even so, the company still failed to resist, and was eventually acquired by JPMorgan for more than 200 million U.S. dollars.

It's not that the real value of this company is only so small, but don't forget that this company is also burdened with huge debts. Many financial institutions interested in this company were scared away by this huge debt.

During this period of time, financial institutions in the United States continued to go bankrupt. Xiaobu had thought of everything, but he never expected that a giant like Rayman Brothers would also be on the verge of bankruptcy!

"Contact the Bank of America and other institutions immediately and ask them to contact the Rayman Brothers. The Rayman Brothers cannot go bankrupt. This will make the financial market situation worse!" Xiao Bu said anxiously.

Since Barclays was interested in Rayman Brothers, it means that Rayman Brothers still have many valuable assets. Besides, the Rayman Brothers themselves have invested in many big investment companies, wouldn't they extend their hand at this time?

"We've already contacted Barclays. Barclays has not completely given up its interest in acquiring Rayman Brothers. This time, with the participation of Bank of America, it should be able to bring it back to life, right?"

While Xiao Bushi was full of anticipation, that afternoon, the lawyer representing Rayman Brothers submitted the documents related to the application for bankruptcy protection.

Xiao Bushi was stupefied. Didn’t he agree that two big banks would negotiate a takeover? Didn’t he also predict the financial situation in the third quarter? Why did he suddenly apply for bankruptcy protection? !

...

Please remember the first domain name of this book: . The website for the fastest update of the mobile phone version of Biquge: