Reborn Xiangjiang Tycoon Growth

While Mr. Bao was inspecting various branches and meeting with acquaintances, the major fund companies and investment banks on Wall Street were very busy. At least they had held many meetings in the past two days.

If there were any era when Wall Street capital was the craziest, the current stage is definitely on the list. In order to make profits, it can be said that there is nothing that these speculators dare not do.

The 1980s is hailed as an era of coexistence of greed and glitz; the barbarism and ruthlessness of capital, and Wall Street's lavish pursuit of wealth were vividly exaggerated. At this stage, the wave of leveraged buyouts actually has the deepest economic roots. Economic downturn and corporate profits decline, management

The agency problems and corporate governance issues at the corporate level, the undervaluation of companies and the flow of hot money are some of the most critical factors of the times.

The 1950s and 1960s after World War II were known as the "golden age" of the U.S.'s economic take-off. The U.S. GDP growth rate in 1950 was 8.7% year-on-year. In the following nearly 20 years, the U.S. GDP growth rate exceeded 6, 7, and 8 many times.

Pass. But good times can never be held back. Entering the 1970s, the U.S. economy began a "turbulent journey."

During the Nixon administration, he even announced that he would stop fulfilling the obligation to convert the U.S. dollar into gold. The Bretton Woods system centered on gold collapsed, and the hegemony of the U.S. dollar was no longer guaranteed. As the stimulation of economic growth from the war gradually disappeared, the United States faced a huge economic downturn.

pressure, a deficit began to appear on the current account.

After the Vietnam War, the United States was saddled with a huge fiscal deficit. Coupled with the outbreak of the Fourth Middle East War, the Organization of the Petroleum Exporting Countries announced an oil embargo, and oil prices skyrocketed, leading to an intensification of the shrinking demand in the United States. The three pillar industries of construction, automobiles, and steel were particularly severely hit.

, the unemployment rate is close to 10%, and the number of business and bank failures has reached post-war records.

During the same period, U.S. consumer prices rose by more than 10%, and more severe inflation plunged the United States into a quagmire of stagflation. Corporate profits fell sharply. Driven by the economic downturn and declining corporate profits, a wave of mergers, mainly "hostile takeovers," began to emerge.

After the merger wave in the 1960s with the goal of "risk diversification", the United States produced a large number of giant companies with "diversified operations". For example, ITT Corporation, which acquired more than 350 companies, and Litton Industries, which promoted diversification strategies. In these equity

In decentralized and diversified enterprises, the agency problem of management has become increasingly prominent.

Inefficient investment, blind expansion of the company's business territory; and even squandering shareholders' profits, corporate governance issues are increasingly exposed by the media. In the case of weak internal governance, the pressure of mergers and acquisitions is regarded as a means of external corporate governance.

After the 1970s, some giant companies were re-split and returned to their main businesses.

At the same time, the macro credit environment also provided the ground for the prevalence of leveraged buyouts. The stagflation of the 1970s led to continued credit expansion and extremely loose monetary policy. On the eve of President Reagan’s coming to power, there were nearly five years of negative real interest rates; the U.S. federal funds rate and inflation rate

Once upside down.

Even in the late 1970s, the junk bond market expanded rapidly, and funds were looking for opportunities everywhere. In the past two years, investors invested US$18 billion in the junk bond market, benefiting KKR, the king of leveraged buyouts, greatly.

Junk bond funds participated in all 13 of its large acquisitions.

During the market downturn, high-yield leveraged buyouts have become the targets of hot money in the market. At this time, Wall Street will definitely ignore good projects if they find them. Bao Zixuan wants to establish a securities trading market in Fucaira, combined with Heiyun

The huge size of the group and the huge oil resources in the Middle East make it a profitable business no matter how you calculate it.

The most important thing is that everyone is not stupid. Investing in Bao Zixuan and oil is definitely much better than increasing leverage to buy out uncertain companies. Not to mention guaranteed profits, but it is indeed difficult to find reasons for failure. And the profits earned are not

It will be less. So when the news was released, the whole Wall Street was shocked.

They all want a piece of the pie, but now they can’t directly negotiate with Bao Zixuan; they need to let the other party see their professionalism.

The first is the Goldman Sachs investment bank. After all, Bao Zixuan was the first to find them; Bruce Bowles is reporting the relevant situation to the directors.

At this time, the president of Goldman Sachs was very high-spirited. After all, the other party took the initiative to find them, giving Goldman Sachs an advantage.

Bruce Bowles: "On the day Microsoft went public, Mr. Bao Zixuan came to me. He hoped to cooperate with the Goldman Sachs investment bank to establish the Fucaira stock trading market. As for the relationship between Bao Zixuan and Fucaira, here is also

No need for me to emphasize."

"The other party is very sincere and their attitude is very clear. If Goldman Sachs Investment Bank wants to participate, they will definitely give us a seat. At the same time, although Bao Zixuan did not directly reject Morgan Stanley, judging from the tone, the other party should not choose the same

Cooperation with the Morgan family. This is our opportunity, at least much better than investing in junk bonds."

Goldman Sachs must not remain indifferent to the goodwill shown by Bao Zixuan. If that is the case, then based on that guy’s character, there will probably be no chance of cooperation in the future. Old Morgan is too stubborn, which makes cooperation with Heiyun Group increasingly difficult.

The less.

Even National Steel Corporation of the United States is about to be kicked off the supplier list of Black Cloud Automobile. You must know that this is the world's largest automobile group, and they would rather import steel from abroad than buy it locally. National Steel Corporation's products are cost-effective

It's definitely not bad. It can be said that this guy just wants to compete.

As for Apple and Microsoft, that's because they never participate in any management. Even if they are listed, they just come to take care of errands. It cannot be regarded as cooperating with Heiyun companies; Bao Zixuan is not the controlling shareholder of these two companies.

At this time, a director said: "President Bowers, how much profit can Goldman Sachs make if it helps Heiyun Group build a stock trading market in Fucaira?"

Hearing this, Bruce Bowles felt disgusted. It was because of this director that Goldman Sachs entered the field of junk bond underwriting. This would not only damage the company's reputation, but more importantly, it would cause serious risks in the future.

But this group of people, for the sake of short-term interests, are completely indifferent. There is no cooperation yet, and to be precise, no details have been agreed upon. It is just a preliminary concept, and when Goldman Sachs needs to come up with a plan, they actually ask how much profit they can make.

How does one answer this?

But now that we are on the board of directors, we must not act like a child.

Bruce Bowles said very seriously: "I can't answer you yet, after all, this matter is still under planning. As for how much profit can be earned, it depends on Goldman Sachs' attitude and dedication."

"Bao Zixuan has made it clear that he is not very professional about the stock trading market; therefore, he hopes that Goldman Sachs can come up with an overall plan. In other words, the Fucaira stock trading market is planned by Goldman Sachs. This is a test of skill. How can

While maximizing profits, we also satisfy customers.”

"So I will lead the team, personally investigate, and then come up with a final plan."

"Dear directors, there is currently no professional stock trading market in the Middle East, but there are many large oil companies in the Middle East. They lack technology and capital, but they have huge oil and natural gas resources in their hands."

"As long as you raise funds in the stock market, it is easy to develop. If Goldman Sachs invests junk bond funds in oil and natural gas companies, not only will the assets become benign, but the future returns will be immeasurable."

Hearing that Goldman Sachs could participate in the construction of a national stock trading market, all the directors became interested. This is not only a matter of profit; popularity and influence are even more difficult to measure in terms of money.

If the Fucaira project is successful, then other countries that want to build stock trading markets will definitely choose Goldman Sachs first. This is invisible advertising, more useful than any publicity.

And you can exchange junk bonds for oil and gas company stocks. Any fool knows how to choose. This is a good opportunity that you can't find with a lantern; you must not miss it.

Chris Goldman, the company's largest shareholder, said very resolutely: "Junk bonds can't last long, so we should get out of here as soon as possible. Since Bao Zixuan took the initiative to find President Bowers, then you should work hard and be a customer.

Satisfactory plan.”

Chris Goldman, as the representative of the Goldman family; his words are still very weighty, and they can be regarded as the final word on this matter. In other words, the entire company must unconditionally cooperate with the Fucaira Stock Exchange Project.

As for the other directors, they definitely don’t dare to say anything more, as that would be making themselves unhappy.