Rebirth Starts From 2006

Glancing at Huang Shan, who was quite confident, Boss Chen shook his head gently, "No!"

Huang Shan blinked in confusion, "Isn't it?"

"of course not,"

Boss Chen shrugged and said, "As early as 1933, the Glass Steagall Act promulgated by the United States clearly stipulated that commercial banks were prohibited from engaging in investment banking business, and investment banks were prohibited from interfering with commercial banks. business,

Although the Financial Services Modernization Act was passed in 1999 and the Glass-Steagall Act was repealed, allowing financial holding companies to operate mixed businesses, in the past 66 years, the Federal Reserve, which has the nature of a central bank, Investment banks have long been excluded.

At that time, Morgan was not weak at all. Since the Glass Act could be passed, they may not have the intention to voluntarily leave on their own. This is naturally not a significant feature. "

As he spoke, he turned his attention to Zou Rong and said with a smile, "The distinctive features I am talking about refer to the organizational structure and definition of powers and responsibilities of the Federal Reserve. They are no longer what they used to be.

The current Federal Reserve, in terms of organizational form, is mainly composed of three parts, namely the core management body of the Board of Governors of the Federal Reserve Board, the local Federal Reserve banks, and the Open Market Operations Committee.

As a political agency, the Federal Reserve Board has seven directors. The members are directly appointed by the President of the United States and approved by Congress for a fourteen-year term. This means that they will span multiple presidents and will not be loyal to one person.

Moreover, the president does not have the power to remove serving directors, and more than two-thirds of the Congress must approve them before they can be fired.

Twelve regional Federal Reserve Banks divide the United States into twelve reserve regions with equal voting rights, which avoids the problem of the Federal Reserve favoring a specific regional consortium.

The core department of each local Fed is the board of directors, which consists of nine directors, three of whom are bankers and appointed by the Board of Governors of the Federal Reserve Bank of Washington. The remaining six are from outside the banking system and are generally elected jointly by the local Fed member banks. Basically they are business tycoons from different industries.

The final Open Market Operations Committee, composed of the seven members of the Board of Governors of the Federal Reserve Board and the Chairman of the Federal Reserve Bank,

Here’s the point, this is the most important department in the Federal Reserve system, responsible for exercising the final power of monetary policy!

In fact, among the twelve Reserve Bank chairmen, only the New York Reserve Bank chair has a fixed quota, and the other eleven can only take turns to hold the remaining four executive committee positions.

Because this committee can only accommodate twelve candidates each term, seven of whom are directors of the Federal Reserve Board! "

Having said this, Chen Yang spread his hands and said with a smile, "You see, the forces behind this decision-making body of the Federal Reserve include the President of the United States, Congress, member banks in various places, and business leaders from all over the country.

If a certain consortium wants to control the Federal Reserve, it needs to simultaneously control their president, Congress, most commercial banks, and business bosses from all walks of life.

If he has this kind of power, the entire United States belongs to him. Does he still need to care about the Federal Reserve? ! "

Finally, Chen Yang smiled and said,

"If you have to say who can control the entire Federal Reserve system, then there is only one answer, and that is the entire American bourgeoisie, and the big bourgeoisie!"

However, the United States is originally a capitalist country, and the big bourgeoisie controls its own Federal Reserve system, so there is nothing wrong with it at all.

"Yes, that's true,"

Huang Shan nodded lightly and said, "The Federal Reserve adopts a dual organizational structure of a federal government agency and a non-profit agency, thus avoiding the complete concentration of monetary policy in the hands of the federal government and taking into account the interests of banks and capital in various industries. ,

The twelve Federal Reserve Banks are all non-profit institutions, and their shares are dispersed among many bank shareholders in proportion to their assets. However, they also include bigwigs from other industries on their board of directors.

No matter from any angle, it is almost impossible to be controlled by a certain person or force alone, and it is not easy to even have a major influence, not even for shareholders.

For example, Rainbow Bank, a subsidiary of Rainbow Financial Group in the United States, is a member and shareholder of the Federal Reserve.

Do you think we can determine Fed policy? ! "

Zou Rong was full of surprise, "Our company is also a shareholder of the Federal Reserve?"

After all they had said just now, the little girl still felt that the Fed shareholders were quite high-end, but when she heard that Rainbow Bank was also a Fed shareholder, she instantly felt that this was the end of the Fed's reputation!

"yes,"

Boss Chen said matter-of-factly, “According to the Federal Reserve Act, all national commercial banks must be member banks of the Federal Reserve and accept the supervision of the Federal Reserve’s Office of Monetary Management.

Local banks in each state can choose whether to become members of the Federal Reserve. If they want to be members of the Federal Reserve, they will be regulated by the Federal Reserve. If they do not want to, they will be regulated by the Federal Deposit Insurance Corporation.

The one we acquired before...well,"

Chen Yang turned to look at Huang Shan, "What bank are you from?"

Huang Shan pursed her lips and smiled, and said proudly, "No matter what bank, it is Rainbow Bank now!"

Then he turned to look at Zou Rong and said with a smile, "That bank is a national commercial bank, and it is also a shareholder of the Federal Reserve Bank of New York. It is just a medium-sized company with a small number of shares.

If they had not lent large amounts of funds to real estate developers, the U.S. real estate industry would have continued to slump, and many projects would have even gone bankrupt, causing them to generate a large amount of non-performing assets.

The equity in the Federal Reserve Bank cannot be transferred or sold to outsiders, and it cannot enjoy the profit dividends of the Federal Reserve. The only income is the interest paid at a fixed interest rate of 6% every year, and there is almost no actual benefit.

Nor will it face the dilemma of bankruptcy. "

Zou Rong blinked and asked in confusion, "Don't you mean that as long as you are a shareholder of the Federal Reserve, you can get their bailout?"

Huang Shan shrugged and said with a smile, "So, this bank will be acquired by us instead of going bankrupt!"

"ah?"

Zou Rong was stunned for a moment. Is this how he was rescued?

Huang Shan smiled and said, "The financial regulatory system in the United States is relatively complicated,"

After a pause, she thought for a moment and said, "For example, our country has a central bank and a banking regulatory commission, while in the United States, they have the Federal Reserve and the Federal Deposit Insurance Corporation.

The significance of supervision is not to ensure the interests of bank operators, but to protect the interests of depositors through risk management and crisis relief.

Because the foundation of the financial industry is credit, if the safety of users' assets cannot be guaranteed, it will be a devastating blow to the financial industry, especially the banking industry.

Therefore, when a bank crisis occurs, if the problem is not serious, they can provide a certain amount of emergency loans or guaranteed loans after evaluation by the Federal Reserve or the Federal Deposit Insurance Corporation to help member shareholders tide over the crisis.

If the problem is serious and the bank is insolvent, then the Federal Reserve or the Federal Deposit Insurance Corporation will try their best to attract other banks to acquire it.

In fact, it means selling valuable assets to repay debts.

If it is really impossible to achieve an acquisition, for savings banks, they will also use the deposit insurance fund to bear the debt of the bank in excess of its assets, with the purpose of making up for the losses of depositors. "

"oh,"

Zou Rong nodded suddenly, "I understand!"

But then he pondered for two seconds, "Then becoming a shareholder of the Federal Reserve doesn't seem to be a good thing!"

To become a shareholder of the Federal Reserve, you have to spend money to subscribe for equity, but the rights are very tasteless and restricted. You can only enjoy a fixed interest rate of 6%.

After spending such a high price, I only received a limited emergency rescue privilege.

Why do you feel like you seem to be at a disadvantage? !

Huang Shan thought for a while and said, "Well, becoming a shareholder of the Federal Reserve is not completely without benefits. Otherwise, more than 3,000 national banks in the United States would not all be vying to become shareholders of the Federal Reserve Bank.

Especially for banks with higher assets and larger shareholdings, in addition to receiving emergency assistance, there are also many off-market benefits. "

Zou Rong opened her eyes wide and looked at her in confusion, "Off-site benefits?"

Huang Shan smiled slightly, but did not speak. Instead, she turned to look at Qin Yu.

Qin Yu saw her action, smiled and shrugged lightly, looked at the phone again, and said with a smile, "It's been five minutes and there's still no call. Is it because their efficiency is too low or they think our weight is too light?" ?”

Zou Rong's eyes were blank, what kind of riddle are you trying to solve?

Chen Yang leaned back in his chair, squinted his eyes and thought for a while, then suddenly said, "If you were the decision-makers of Goldman Sachs or Morgan Stanley, what would you think if you learned that Rainbow Group had just inquired about you?"

The financial industry thrives on information. If the information is blocked, let alone doing business, even loans cannot be granted. Not to mention that Qin Yu and Huang Shan’s actions just now were not covered up in any way.

If Goldman Sachs and Morgan Stanley don’t even know this news, then they are underestimating them.

Huang Shan rolled her eyes and then laughed dumbly, "If it were me, I would definitely suppress it. At least we have to understand our intentions before deciding how to make this call."

Qin Yu on the screen also raised his eyebrows, threw the phone away decisively, and ignored it.

Isn't it just a negotiation method? It seems like no one can do it.

Chen Yang smiled, turned to look at Zou Rong, and said with a smile, "I just said that two major things will happen in the United States. One is that the Federal Reserve will relax the control of investment banks on commercial banking business, and at least allow investment banks to set up financial holding companies. Enjoy the same treatment as commercial banks that can operate mixed operations,

The other one is Goldman Sachs and Morgan Stanley, who will definitely take this opportunity to join the commercial banking business.

No matter which of these two things it is, they need to communicate with their peers, at least peers of a similar level, and gain their support! "

Huang Shan also looked at her and smiled, "Didn't you just say that there are no benefits to being a shareholder of the Federal Reserve? Look, here are the benefits!"

If you still don’t understand, then Zou Rong is too stupid.

She suddenly realized and laughed, "So this is an off-site benefit. Whether it is shareholder voting or peer support, they need to exchange benefits, but we only have to provide them with a little convenience.

This is commercial exchange! "

Huang Shan raised her eyebrows slightly and nodded with a smile, "Yes, it is a commercial exchange. However, if we do not have this shareholder status, or if we are not large enough, we are not qualified to participate in the commercial exchange.

And these things will not appear in any management system, and all activities will be conducted off-site! "

After Huang Shan finished speaking and Zou Rong had no other questions, Qin Yu turned his attention to Chen Yang and said seriously,

"Boss, since the situation is as you expected, this financial crisis that everyone is in danger of should be over soon.

Next, I will follow the predetermined plan to buy lows in the European and American financial markets. In addition, do you have anything else to explain? "

Chen Yang frowned slightly, squinted his eyes and thought for a while, then asked, "How much funds can we use in two days?"

Just now Qin Yu said that all contracts can be closed in two days. What he asked about was the total cash after the positions were cleared.

Qin Yu smiled slightly, "The initial estimate is that it should be around 150 billion US dollars!"

Chen Yang's eyebrows were raised, and a smile couldn't stop hanging on his face, "Oh, it's much higher than expected!"

In the first half of the year, Qin Yu estimated that after this operation was completed, the total amount of funds should be between 130 billion and 140 billion US dollars. Now this number has exceeded the upper limit.

Huang Shan and Zou Rong beside them couldn't help but were speechless.

This is real cash flow. Don’t look at those financial giants who frequently claim to have total assets of hundreds of billions or trillions of dollars, but most of them are debts, that is, the funds stored there by customers. If they own assets, they can Even if it’s tens of billions of dollars, it’s too much.

For example, the total market value of Santander Bank, which Rainbow Group is planning to acquire, is less than US$20 billion.

Oh, the stock market has plummeted in the past two days, and there may be just over 10 billion left.

Putting all the cash owned by this century-old bank together, it might only amount to a billion dollars.

Therefore, if calculated based on its own assets alone, Rainbow Group has long been the world's largest financial group, even surpassing UBS and HSBC.

Seeing the astonished expressions of the three people, Qin Yu waved his hands pretending to be calm, "Hey, it's actually nothing. If you just do some calculations, trillions of dollars have evaporated from the global stock market this year.

The daily transaction volume of major financial markets such as foreign exchange, futures, stocks, and bonds exceeds 10 trillion.

We entered the market with tens of billions of dollars, followed the general trend, and used leverage, but we only made so much.

Not worth mentioning, really not worth mentioning! "

Good guy, this is for her.

The three of them laughed heartily.

What Qin Yu said is simple, but it is extremely thrilling. From the beginning of last year to now, from the Eastern Stock Exchange to major financial markets around the world, she has experienced so many sudden rises and falls.

Dozens of big trends and countless operations, you can't make a wrong step, otherwise you will end up wasting all your efforts and losing all your money.

That is to say, only with Chen Yang's accurate prediction of market trends and world economic trends, coupled with Qin Yu's subtle operations, can this be achieved.

As long as one person is missing, or there is insufficient trust between the two, this effect will not be achieved!

After the laughter, Chen Yang let out a long breath and said,

"This financial crisis has really fulfilled that saying. It is both a danger and an opportunity.

If there had not been the subprime mortgage crisis in the United States, let alone 150 billion US dollars, it would be good to have 10 billion US dollars if all our assets were added up.

After this round, we have made a lot of money. Now that the crisis is about to pass, it is also time to make some arrangements for the post-crisis era."

He raised his head and looked at Qin Yu, "Mr. Yu, there are two main things for you. One is to hurry up on the acquisition of Santander Bank.

Without the financial crisis to make money for us, from now on Rainbow Financial Group will be like other financial companies and follow the business path in a down-to-earth manner.

As for conventional operations, scale is the key. If we miss this opportunity, we will have to work hard for at least five more years.

Moreover, with the current amount of funds of Rainbow Group, if it does not have enough business volume to form an effective resource network, it may be coveted by all parties and cause a lot of trouble. "

Qin Yu nodded solemnly, "Understood, I will use this to exchange interests with Goldman Sachs and Morgan Stanley."

These two companies can be regarded as absolute authorities in the field of bank mergers and acquisitions.

I have already received some convenience from them through the exchange of benefits. Now with this addition, it is not too difficult to ask them to provide appropriate convenience.

She is very confident about this. The difference lies in how to amplify these conveniences through negotiation.

Chen Yang smiled and continued, "The second one is the stock market bargain hunting that was previously decided. Since you and Mr. Shan have divided the work, you should concentrate on the financial market. If you need to make equity investment directly in the company, there will be Mr. Shan will execute it.”

Huang Shan and Qin Yu both made OK gestures, indicating that there was no problem.