Chapter 1810: He Cheated His Own Bank of America
Feng Yu once told Minsheng Bank that the U.S. market is very chaotic at this time, with risks and opportunities coexisting, and he must be notified when encountering large transactions.
This time, someone wanted to borrow 3 billion U.S. dollars in a short-term. This figure is very large, far exceeding the total amount of deposits absorbed by Minsheng Bank in the United States. Of course, it must be reported to Feng Yu.
However, according to the person in charge of Minsheng Bank in the United States, it should be possible to borrow, and the other party's reputation is very good.
It was the New York branch of the Bank of America who came to borrow money. The Bank of America used to use the name Bank of America in China, because they are a private joint-stock commercial bank, using the name of the Bank of America, worried that people in China would think it was a bank owned by the US government.
But in fact, although this is a joint-stock commercial bank, it still has a great relationship with the US government. For example, some of the families of the shareholders of these banks hold positions such as councilors.
In less than a year, many banks in the United States have gone bankrupt, and lending between major banks has become more and more troublesome, and the review has become more and more stringent.
The interbank interest rate was also raised by the Bank of America and others. It is precisely because of this that the speed of failure of many small banks has been accelerated. Anyway, the big banks mainly lend out, and of course it is best to get more profits. If a small bank goes bankrupt, they still have a way to recover their capital.
"Mr. Feng, this is a document from the Bank of America, which gave us a lot of interest. And we have analyzed that after a large number of layoffs, the cost of the Bank of America has dropped a lot, and it can definitely overcome this difficulty."
Feng Yu glanced at it briefly, and threw the document aside: "This interest rate is not the highest, tell them, we want the highest interest rate, and we want the priority repayment right."
The so-called priority repayment right means that when the contract expires, Minsheng Bank can ask Bank of America to repay their money first, because Bank of America may have borrowed money from multiple banks at this time.
Priority repayment can reduce the risk of Minsheng Bank. However, those who require priority repayment rights generally have relatively lower interest rates. The lower the risk, the lower the profit.
Feng Yu now wants both the highest interest rate and the priority repayment right. It is clear that he wants to take advantage of the fire.
The Bank of America is required by the Congress and the Office of the President to help some companies tide over the difficulties and take over some financial companies that have filed for bankruptcy. Of course, the US government will also give Bank of America certain commitments, such as guaranteeing their The debt must be recovered on time, and some other conveniences will be given.
If you want to talk about why Xiao Bushi has such a good relationship with the Bank of America, the main reason is that the shareholders behind the Bank of America are actually staunch supporters of Xiao Bushi.
There are many military and fire dealers standing behind Xiao Bushi. Everyone knows this, so after he came to power, he started many wars, which greatly helped those military and fire dealers make money.
And the headquarters of the Bank of America is located in California. What is the most important industry in California? Army~Fire!
So why does the Bank of America support Xiao Bushi's decree, because this is a transaction in itself. And in the future, they will continue to promote members of the Bushi family and maintain their cooperation.
Even now, they can't watch Xiao Bushi fall from power. This will affect the reputation of the Bushi family and have a great negative impact on their future cooperation.
Besides, even if they themselves are grasshoppers on a rope, of course they have to jump at one end.
What's more, helping the government take over some companies that are on the verge of bankruptcy, they don't necessarily lose money. First, some non-performing assets will be divested, and then they can take the opportunity to expand their business scale and get some high-risk bonds or something.
A single policy from the government can make the bonds in their hands appreciate significantly, thereby getting rid of losses and making good profits.
In the previous life, the Bank of America also supported Xiao Bushi a lot. This time, the Bank of America also took action in the crisis of the two Fangfang Group. From a commercial point of view, the two Fangfang Group must be finished, but if the government is willing to help,
Then the two rooms will turn around.
The Bank of America's short-term borrowing at this time must be to wipe the ass of the two rooms, or to find other ways to make money.
Since the Bank of America has come to Minsheng Bank, a foreign bank that is not obvious and leaky, it shows that they really need money.
Why don't you take the opportunity and ask for the highest interest and the best conditions?
Anyway, Minsheng Bank and Bank of America are not partners, they are still competitors, so when will we wait if we don't start now?
The president of the New York branch of the Bank of America frowned at this time. The public voice bank was too loud, not only asking for the highest interest rate, but also the priority of repayment.
While they were still hesitating, the other party proposed another one, using RMB as the current exchange rate. In other words, if you borrow 3 billion US dollars now, then based on the exchange rate of 1:7.4, it is about 22.2 billion RMB.
When you pay back, you have to convert 22.2 billion RMB into US dollars to repay, and the interest is the same.
But everyone knows that although the RMB has not appreciated strongly at this time, the US dollar is depreciating. By the time they repay the loan, the principal, which was originally worth 3 billion US dollars, may have increased by nearly 100 million US dollars!
Originally, this part of the gap could make up for the interest expenses of the Bank of America, but now, they will lose even more.
At this time, the Bank of America is taking over some of the businesses of the two Fangfang Groups in accordance with the requirements of the superiors, helping the two companies to tide over the difficulties, and of course it can also exchange for some other conveniences.
Originally, a small-scale bank like Minsheng Bank was not within the scope of their short-term lending considerations. With such a small scale, one billion US dollars may not be able to come out, right? But after they knew that the major shareholder of Minsheng Bank was actually Feng Yu, they felt that the bank would definitely be able to provide the money.
It's just that they didn't expect that Minsheng Bank would be so greedy and propose such harsh conditions!
It is also difficult for other commercial banks in the United States at this time, such as Citigroup, which is not bad, but they are unwilling to lend to the Bank of America, and they do not want the Bank of America to take advantage of the opportunity to grow.
Banks in the United States don't have many choices, and they have borrowed from Europe, which is not enough. They couldn't let go of any of their peers who could borrow money at this time, so even though the conditions of Minsheng Bank were harsh, they could only grit their teeth and agree.
They just feel that, as the first commercial bank to raise the interbank offered rate, did they do something wrong? Originally, they had been borrowing money from outsiders. Of course, the higher the interest rate, the more cost-effective.
But now it's their turn to borrow money, and the high interest rate has made them suffer.
Accidentally, he lifted a rock and shot himself in the foot!
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