Rebirth of the Financial Crisis Sweeping the World

Chapter 229 229 Crazy smashing! Fuck the Philippine consortium!

At 9 p.m., there is still half an hour before the U.S. stock market opens.

Blackshirt Investment Bank, Proprietary Trading Department.

Wang Guanxi, Wu Zhanhai, Wu Hongsheng, Li Guangyu, Guan Wenwei and others are all there.

Tonight Blackshirt Investment Bank is going to short Lehman Brothers, the fifth largest investment bank on Wall Street. It makes me excited just thinking about it.

Blackshirt Investment Bank is a small company with client assets of HK$20 billion and proprietary assets of almost zero. Compared with Lehman Brothers, it is a small carp compared to a big shark.

Moreover, Blackshirt Investment Bank's self-operated funds were borrowed, and Wing Hang Bank loaned HK$1.5 billion.

This time they will short Lehman Brothers at the lowest level in the history of Lehman Brothers’ share price!

It would be unbelievable in normal times, but everyone was betting on the collapse of Lehman Brothers, which gave the impression that they were a group of crazy gamblers.

If the bet is right, it will be prosperous. If the bet is wrong, the stock price of Lehman Brothers will skyrocket, or Lehman Brothers will be acquired at a premium, and the black-shirted investment bank will suffer huge losses and be finished!

The news comes before the stock market opens.

[Lehman Brothers announces strategic restructuring plan]

Lehman Brothers took several steps to significantly reduce its residential mortgage lending and commercial properties, significantly reducing the company's real estate portfolio in the third quarter.

Lehman Brothers reduced its exposure to residential mortgages by 31% to $17.2 billion.

In addition, Lehman Brothers has sold about US$4 billion of its UK residential mortgage loan portfolio and entered a formal cooperation stage with BlackRock Group, which is expected to be completed in the next few weeks.

The transaction is expected to reduce its residential mortgage exposure by 47% to $13.2 billion on a pro forma basis.

Lehman Brothers also reduced its exposure to commercial real estate mortgages to $32.6 billion from $39.8 billion, a reduction of 18%.

Plans to distribute a $25 billion to $30 billion commercial real estate portfolio to shareholders and establish an independent publicly traded company in the first quarter of 2009.

Lehman Brothers will sell a majority stake in its investment management unit, which includes asset management, private equity and wealth management units, estimated to be 55%.

These are Lehman Brothers' self-rescue measures.

Richard Fuld, chairman and CEO of Lehman Brothers, also claimed: The industry is facing a special period, and our company is also in the most difficult stage in history.

The strategic initiatives we announced today reflect our determination to significantly reduce balance sheet risk by

A greater focus on our client-facing businesses returns the firm to profitability, fundamentally reshaping Lehman Brothers

Wu Zhanhai said with some concern: "BOSS, this self-rescue plan of Lehman Brothers is good for the stock price. Should we wait until the stock price rises to more than 5 US dollars per share before we open the market?"

Lehman Brothers is now frantically trying to save itself, and it may actually be able to save lives successfully.

By then Lehman Brothers might be able to get out of trouble, but now that they are shorting Lehman Brothers at its lowest level in history, the risk has become very high.

Once Lehman Brothers succeeds in self-rescue or is acquired at a very high premium, Blackshirt Investment Bank will be finished.

Wu Hongsheng also said: "This Lehman Brothers company may be a self-rescue operation to negotiate with buyers, and then sell it at a good price."

Lehman Brothers' stock is now at a historical position. Richard Fuld, chairman of Lehman Brothers, has launched a strategic restructuring plan. The stock price is intended to allow buyers to acquire Lehman at a premium.

Previously, Bear Stearns Investment Bank was acquired by Morgan Bank at a low price. The asking price at the time was US$2 per share. However, Bear Stearns Investment Bank's shareholders did not agree. In the end, Morgan Bank acquired Bear Stearns Bank at a premium of 400%.

I remember that a few months ago, Morgan Bank finally acquired Bear Stearns Bank at a price of $10 per share, and Bear Stearns Bank shareholders also benefited.

Now Chad Fuld, the chairman of Lehman Brothers, must also want to be acquired by buyers at a premium and sell Lehman Brothers at a good price.

If it really comes to fruition, for example, with a 200% premium on the acquisition price, then Blackshirt Investment Bank will lose all its money by shorting Lehman Brothers this time.

Li Guangyu looked a little nervous and said: "Chad Fuld, the chairman of Lehman Brothers, is really smart. If we really want him to sell Lehman Brothers at a premium of several times, we will be doomed."

For example, the current stock price of Lehman Brothers is US$4.75 per share, and Blackshirt Investment Bank shorted 40 million shares here. If Lehman Brothers was acquired at a price of US$10 per share, Blackshirt Investment Bank would be That's a loss of $5.25.

40 million shares would result in a loss of US$210 million, and Blackshirt Investment Bank would liquidate its position directly.

Guan Wenwei also said: "I hope the negotiations between Lehman Brothers and the buyer will continue to break down."

Lehman Brothers had previously negotiated with South Korea's Industrial Bank, but the negotiations eventually broke down. Now they are negotiating with new buyers, and he hopes to continue to break up.

Thinking of this, he said: "I hope Lehman Brothers will collapse."

But he felt a little impossible in his heart.

After all, Lehman Brothers has been an investment bank for more than a century, and was the fifth largest investment bank on Wall Street. It has a great reputation and is known as the Phoenix of Wall Street.

At this time, Wang Guanxi said calmly: "Don't worry, Lehman Brothers' negotiations will eventually break down, and it is not far from bankruptcy."

Lehman Brothers is now frequently negotiating with potential buyers and seeking bailouts from the U.S. government and the Federal Reserve, but in the end they all failed, and Lehman Brothers became an abandoned son.

Of course, there are still many people who are optimistic that Lehman Brothers will not go bankrupt or collapse.

There were a lot of people buying Lehman Brothers stock at a time when the stock price was at historic lows.

There are many directors and celebrities in Hong Kong who bought the bargains. For example, Eric Tsang, Zhang Xueyou and others all bought the stocks of Lehman Brothers and ultimately lost everything.

Thinking of this, Wang Guanxi continued: "Sell me short at the opening of the market, 1 million shares at a time. Lehman Brothers will definitely go bankrupt and the stock price will return to zero. If we win, we will make at least 95% of the profit!"

"Yes, BOSS" Wu Zhanhai, Wu Hongsheng, Li Guangyu, Guan Wenwei and others were very excited. If they make money, they can get large bonuses.

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At this time, the Bank of the Philippine Islands, a subsidiary of the Philippine Ayala Consortium, had just held a simple meeting.

Elder, the vice president of the Bank of the Philippine Islands and also the president of the Philippine Islands Securities Company, said: "This time, the bank's securities company plans to continue to increase its holdings of Lehman Brothers' stocks. Do you have any questions?

If you have any opinions, you can put them forward.”

Seeing that everyone had no objections, Elder said: "Then let's break up the meeting."

The decision to increase its holdings of Lehman Brothers shares was suggested by Mr. Augusto, one of the heirs of the Ayala consortium, who asked them to meet to discuss whether to increase their holdings of Lehman Brothers.

This time, it was because of Hong Kong's Huang Group and the Zheng Group that they proposed a cooperation plan to block the black-shirted insurance companies on Lehman Brothers stocks.

After destroying Blackshirt Investment Bank and Blackshirt Insurance Company, Philippine Islands Securities Company can buy shares in Blackshirt Investment Bank at a bargain price and enter Hong Kong's securities brokerage market.

Mr. Augusto felt that this suggestion was feasible, so he asked Elder and others to meet to discuss whether to increase their holdings of Lehman Brothers shares.

After all, Lehman Brothers has been at the center of a storm recently, with its stock price falling to a record low.

Mr. Augusto of the Ayala Consortium was a very cautious person and did not agree to the proposals of the Huang Consortium and the Zheng Consortium immediately.

After a discussion between the executives of the Bank of the Philippine Islands and the Philippine Islands Securities Company, they finally decided to use this method to increase their holdings of Lehman Brothers' stocks, and at the same time, they could blow up an investment bank in Hong Kong, Black Shirt Investment Bank!

By then, the Philippine Islands Securities Company will also enter the Hong Kong securities brokerage market, using this as a springboard to enter the Chinese mainland market and cut the Chinese people's leeks.

Thinking of this, Elder came to the trading room in the Bank of the Islands Building.

The headquarters of the Bank of the Philippine Islands and the Philippine Islands Securities Corporation are located in this building.

"Mr. President!" The traders all looked at him with respect.

Elderna was a legendary trader in the Philippine Islands Securities Company. He rose from the bottom to become the president of the securities company and concurrently served as the vice president of the Bank of the Philippine Islands.

In the eyes of everyone, Elder is an idol.

Elder said: "Tonight I will increase my holdings of Lehman Brothers shares and blow up an investment bank in Hong Kong."

"Call Blackshirt Investment Bank. I guess they will go short as soon as the market opens. We buy at $4.50!"

"Yes, Mr. Elder." Everyone was looking forward to it.

The U.S. stock market will open soon,

Blackshirt investment banks began selling off.

1 million shares!

1 million shares!

1 million shares!

Lehman Brothers' stock price fell rapidly from $4.75 per share to $4.50 per share.

Wang Guanxi shouted: "Stop for a moment!"

At this time, Philippine Islands Securities Company started buying.

Elder shouted: "Take advantage of the good news about Lehman Brothers to raise the stock price above US$5.00 per share, and let the short-selling Chinese people taste the taste of floating losses!'

"Yes, President" the traders kept buying.

2 million shares!

2 million shares!

···

The stock price quickly reached $4.75 per share.

Wang Guanxi thought for a while and said, "Continue to wait and see."

The Philippine Islands Securities Company was still buying, and the stock price quickly reached US$5.00 per share.

Wu Zhanhai asked: "BOSS, do we want to go short now?"

"Don't worry, keep waiting," Wang Guanxi said.

Soon the stock price reached US$5.25 per share, and Elder from Lubin Securities Company shouted: "Stop buying!"

At this time, Wang Guanxi shouted: "Just buy 3 million shares."

"Yes, BOSS" Everyone immediately started smashing the market.

The stock price immediately hit $5.00 per share.

"Continue to sell 6 million shares!"

"It's BOSS"

Then everyone continued to smash the plate!

Soon the stock price fell to 4.50!

Elder of the Philippine Islands Securities Company shouted: "The opportunity has come, buy it and raise the stock price to $5.50 per share!"

"We have lured these Chinese people out of their holes. Overthrow these short-selling Chinese people!"

"Yes, President." Everyone was very excited when they heard the overturning of the Chinese.

Buy like crazy!

3 million shares!

3 million shares!

3 million shares!

···

Soon the stock price was forcibly raised from 4.50 to 5.50!

Elder immediately shouted: "Stop, the stock price is too high, let the Chinese people short!"

As for the black-shirted investment bank, Wang Guanxi shouted: "Keep going short, keep going, we have an opponent tonight!"

Unexpectedly, another financial institution is bargain hunting the stock of Lehman Brothers tonight. That’s just right, allowing Wang Guanxi’s black-shirted investment bank to go short at a high position!

“Sell more and fuck them!”

"6 million shares!"

"Yes, BOSS" Everyone was very excited and started selling in large amounts!

Lehman Brothers' stock immediately turned around and fell, falling from 5.50 to 5.00, and then continued to fall. It was not until it fell to 4.50 that Blackshirt Investment Bank stopped selling.

Elder from the Philippine Islands Securities Company laughed and said: "These Chinese people are really cowards. I thought they would hit US$3.00 per share. Keep buying, and it will rise to US$5.50 per share. I will be there." Look how much money they have to short, let’s eat it all!”

"Yes, President." Everyone's faces were full of excitement.

Continuing to buy, the stock price quickly rushed to the 5.50 position, and Black Shirt Investment Bank was also crazy about short selling!

As a result, Lehman Brothers' stock price fluctuated at a high speed between 4.50 and 5.50.

This is where the Philippine Islands Securities Corporation and the Black Shirt Investment Bank battled.

As time passed slowly, Wang Guanxi looked at Lehman Brothers' stock price reaching US$5.20 per share, and immediately shouted: "Let's finish selling."

"Yes, BOSS." Then Wu Zhanhai and others sold off all the remaining 4 million shares.

Lehman Brothers suddenly fell sharply by 0.4 US dollars, falling to 4.80 US dollars per share.

This time, the average position of Blackshirt Investment Bank is around US$5.00 per share, with a total of 40 million shares. The current floating profit per share is US$0.4, and the total floating profit is US$16 million.

At this time, Elder from the Philippine Islands Securities Company shouted: "Give me the stock price until I grow up. These Chinese people will definitely die and become impotent!"

"Kill them!"

"Yes, President" everyone continued to buy!

The share price of Lehman Brothers rose all the way, and soon reached $5.50 per share, and then continued to reach $6.00 per share.

With the aura of the return of the king.

Elder laughed loudly: "These Chinese people have been beaten to their knees and can only watch the stock price rise!"

At the same time, a prepared press release from the Bank of the Philippine Islands was sent out.

[The stock price of Lehman Brothers has soared, and it seems that the king is returning! 】

[Elder, President of Philippine Islands Securities Company, is very optimistic that Lehman Brothers will be acquired at a price of US$10 per share]

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Jie Hao Securities Company: [Hong Kong Black Shirt Investment Bank will suffer huge losses from shorting Lehman Brothers]

Tai Fook Securities Company: [Philippine Islands Securities Company is considering entering the Hong Kong securities market, and Blackshirt Investment Bank may be acquired]

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