Chapter 77 United Finance (1)

When Leo came to the office again, he was shocked to find that the whole scene had changed: the tense scene he had imagined did not appear at all. Instead, the three of them were talking and laughing together to discuss the company's next policy. They looked like old friends who had met after a long time.

What made him even more confused was that Vivian's father, Francesco, the president of the Southern Bank headquartered in Naples, had transformed himself into the president of the Union Bank, which was about to be listed. He was his absolute subordinate. In addition, he heard that the group planned to borrow 200 million lire from the Southern Bank with an interest rate of 8%.

What shocked him most was that Contini inadvertently mentioned that he should go with Francesco to handle the equity change procedures in two days, get 6 million US dollars from the other party, and then change the registration of 10% of the group's shares to Vivian's name.

He quickly figured out the loan from the Southern Bank. It was to pay the transfer fee for digging Francesco away, but what did it mean to give Vivian this 10% stake? 6 million dollars can never be exchanged for 10% of the shares, not even 5%. Even if Contini wants to compensate Vivian for not being able to marry her, he won't have to spend so much. Going to bed is not a big problem in Italy.

Contini smiled awkwardly: Others can keep this a secret, but Leo, who knows him well, can't. If you keep it secret now, there will be endless troubles in the future. The other party will think that you are not sincere to him. So he drank water while concealing it, and pointed to his belly with his finger.

"Oh..." Leo finally understood that the CEO of the relationship not only accidentally fired a gun, but also made her pregnant. Thinking about it carefully, Contini has only been back for a few days. If it happened in the past few days, it is impossible to find out. It means that it happened before Contini went to the United States. Think about it two days ago when Vivian suddenly made a statement on the radio: she was about to graduate and needed to concentrate on writing her graduation thesis. She will stop broadcasting after the New Year until she returns in September next year. This news is said to have caused some fans to feel sorry, but after thinking about it, Leo finally figured it all out.

He nodded sarcastically, gave Contini a thumbs up, and praised the president, "Well done!" The other party grinned, more embarrassed than ever before...

However, Leo was sarcastic, but in his heart he still admired Contini's responsible behavior. Although Vivian's family background was not bad, if the president really took advantage of it and acted as if nothing had happened, the other party would not be able to do anything to him, and even for Vivian's reputation, he would not dare to make a big fuss. After thinking about it, the president and Vivian were probably in true love, but they couldn't get married and give her a name. If they couldn't give her a name, they could only give her money! And he didn't hide such a secret from himself, which showed that he really treated himself as his own.

Leo was still anxious when he went out: Vivian was a junior schoolmate one grade below him, and Contini was a junior schoolmate two grades below him. As a senior, it would be bad for him to favor either of them. However, he had to find a reasonable solution. His head hurt, but he couldn't find a solution. Now it seems that he was worrying too much. Did the president solve the problem quickly? Not only did he settle it in one go, but he also poached the father-in-law who couldn't get married. It was a typical domineering president style.

Soon, a strange smile appeared at the corner of his mouth. He suddenly thought that Adriana would soon know about Vivian's matter. After dealing with one, he might have to do the same with the other one. The president has too many true loves!

He was still daydreaming about these little things, when Mr. Francisco, president of United Bank, had already entered the role and talked eloquently: "I think that the current four subsidiaries of United Finance are not enough. It is necessary to set up a microfinance company to take over some of the business of United Bank. For example, United motorcycles are very popular and many young people like them, but they may not be able to pay for them all at once. We can use consumer credit companies to provide installment payment methods. I believe that the United Group will not only have motorcycles in the future. Automobiles, household appliances, etc. can also be included in this category; for example, the issuance of joint scholarships and the student loans for middle and higher education institutions you mentioned just now can also be done through microfinance companies; I even think that the internal loans of the United Group Employee housing mortgage loans can also be obtained through this channel. Union Bank is only responsible for handling housing loans for external customers..."

Antonio nodded with satisfaction. The president of Union Bank is not a simple position. He must have ability and connections, as well as high loyalty. Such a candidate is not easy to find. He originally considered and considered that only his son could be used. However, his son is currently assisting old Ziano. Secondly, he was only the president of the Livorno branch of Siena Bank. Although Siena Bank is larger than Southern Bank, Francesco is the president of the head office after all, and his son is only the president of the branch. His vision, ability, connections, and skills are still a little worse. Apart from anything else, this qualification is a big problem.

But Contini used the method of allocating Vivian's shares to tie up this "de facto father-in-law" at once. After all, Francesco only has Vivian as a daughter!

"By the way, is the current deposit interest rate in Italy generally only 3.5%?"

"Small banks can offer this level, many large banks only offer 3.1-3.25%, and the Southern Bank offers 3.2%."

"I want to increase the deposit interest rate of Union Bank to more than 4% and increase the deposit absorption efforts." Contini asked, "What do you think?"

Francisco frowned: "Do you hope to raise more funds for the group through this?"

"Yes, United Group still has a lot of things to do. I need a lot of funds, a large amount of funds that will not fluctuate due to short-term market fluctuations." Contini smiled, "United Group will never go public, so I need a Reliable financing platform.”

"There are two risks in doing this: first, the hatred of the banking community, loan interest rates cannot continue to rise anymore, and the rising costs on the liability side will squeeze their space; second, the impact on the financial system, the risk-free interest rate center rises It will bring about a series of market effects, which is equivalent to a disguised interest rate increase, and will cause large-scale turbulence in bonds and credit. I am not sure whether the central bank will intervene.”

"Ignore the first risk. If you hate it, just hate it. They squeezed my space so I can acquire them. As for the second one..." Contini smiled, "This is market behavior. The Ministry of Finance and the Central Bank will not Who cares, I have someone in charge of them.”

Francisco was stunned for a moment. He now understood the reason why Contini couldn't marry Vivian, otherwise the brand name of someone above him would not be successful.

Leo interjected: "But Calais, this won't work. Even if you can raise a large amount of funds through United Bank, according to the Commercial Bank Law, in order to avoid risks, the credit to the same customer cannot exceed 10% of the bank's total credit, even if It is impossible to achieve a breakthrough under special circumstances.”

Francisco smiled and shook his head: "There are loopholes in this rule. It's easy to break through it."

"How to break through?"

“First, United Bank can purchase United Group preferred shares and can unconditionally discount United Group corporate bonds, which can free up at least 800 million to 1 billion lire; second, United Bank can provide pre-sale credit to United Group suppliers; third Third, United Bank can provide virtual demutualized credit to United Group employees; fourth, United Bank can entrust United Group with on-lending through foreign banks..." Francisco said a lot of nouns at once and said with a smile, " As long as there are people on top, these sidesteps are not a problem.”

Leo knew all about preferred stocks, corporate bond discounts, and entrusted re-lending, but the terms pre-sale credit and virtual demutualized credit confused him.

"The so-called pre-sale credit means that United Bank puts a sum of money to the supplier, and the supplier pays it off with the goods, and then the United Group completes the purchase of the goods from United Bank." Francisco explained, "Originally, in the normal commercial credit process, The goods are the collateral for the supplier to obtain a bank loan. The collateral will only be used to repay the loan if it cannot be repaid. However, it was agreed in advance that the goods should be used to offset the loan, so there is no breach of contract. In fact, United Bank does not see the goods at all and does not pay any fees. After carefully storing, seizing and cashing in the goods, as long as he has a letter of consent from the United Group, he can first provide a one-day loan to the supplier and then pay it off.”

In this way, the chain becomes very strange: although there is a loan relationship between the supplier and the bank, the payment period is only one day, and the delivery can be completed without interest; but the relationship between the bank and the joint group that obtains the ownership of the goods from the supplier becomes It has become a buyer-seller relationship. Well, no one stipulates the buyer-seller relationship with a payment period of 180 days or 365 days. As long as the buyer pays more (interest), the bank can accept it.

"The so-called virtual equity credit means that United Bank provides employees with a sum of money for them to purchase virtual shares from United Group. The shares are classified as Class C shares, which are different from traditional Class A preference shares and Class B normal shares. , liquidate after separate dividend distribution every year..."

Francisco laughed, "In fact, the bank transferred the loan to the United Group through employees. The so-called dividends are just the bonuses that employees should receive at the end of the year. The difference in price before and after liquidation is equal to the loan interest rate. Once liquidated, the credit and shares will disappear immediately. The employee has no shares or liabilities. All he gets is bonuses called dividends based on work performance. Of course, every employee does not need to participate. It is enough for core and management employees to participate. For example, Chairman Leo can take a loan. If you buy virtual shares for 100 million lire, you only need to pay 105 million lire back to the bank at the end of the year, and the United Group will definitely send you more than 105 million lire. The difference is the annual bonus you should receive. In fact, it may be 100 million, or 105 million. Well, you can’t touch it at all, it’s all transferred directly between bank accounts..."