Reinventing the Millennium

The New York Fed governor's displeasure was fleeting.

Because of the light and the angle of the dinner, only a few people in the circle saw Geithner's expression, and among these people, only Susan from Northern Trust immediately understood the origin of President Geithner's change in mood.

When Mr. Fang made a phone call before, he revealed the names of fund clients, including this one.

Susan didn't know Geithner's investment amount or investment method, and she had no intention of delving into it. She only knew that there was such a thing and that he would come to the platform tonight.

But, Fuld is certainly an annoying loudmouth, but he is actually in charge of the behemoth Lehman Brothers.

As one of the five largest investment banks in the United States, Lehman certainly has both market success and a range of resources.

In fact, Susan never expected that this "gorilla" would appear on this occasion tonight. Fuld joined Lehman as early as 1969 and has been in control of the company for 12 years. He is as if he is one and the same with this investment bank. noodle.

It is the outside world's opinion that Fuld is arrogant, self-willed and has many enemies. In fact, under the leadership of Gorilla, Lehman Brothers' stock price increased 17 times.

Last month, "Business Weekly" also greatly praised the head of Lehman, believing that "Ford has reshaped the corporate culture of Lehman Brothers and greatly diversified the company's business, which is worth learning from his colleagues on Wall Street." .

With such praise, Lehman Brothers is on track to become the largest trader on the London Stock Exchange.

However, it is true that Lehman is at its peak, and its dispute with Goldman Sachs is not light.

In 1999, Goldman Sachs encountered a crisis due to the bursting of the Internet bubble. Lehman took advantage of the situation to short-sell Goldman Sachs and sniped at the investors who helped Goldman Sachs. Both sides became red-eyed.

As a result, although Lehman moved up the rankings of investment banks, Goldman Sachs quickly recovered under Paulson's hand.

Then... this year, Paulson became the 74th fiscal steward.

When the news came out, many people, including Susan, were waiting to see the show.

Susan didn't think it would take just a few years for Paulson to forget the bloody conflict.

Tonight, although Summers' relationship with Goldman Sachs and Paulson is only average, it is different with Rubin, another big boss. He came from Goldman Sachs before serving as the 70th financial steward.

Rubin has worked at Goldman Sachs for 26 years, and the "Goldman Sachs" label on him has long been indelible, and he has no intention of cleaning up the label.

With such a person as the chief consultant of the New York Economic Institute, "Gorilla" Fuld should be avoided.

Or is there some unusual relationship between Fuld and Summers?

Susan had a lot of thoughts at the moment, and she felt that according to Fuld's headstrong character, it might be the reason why "If you invite me, I will come" and "I, Fuld, don't dare to come".

Fuld's comparison of MIGA funds and Lehman Brothers did not stop with Geithner's arrival. The former even nodded to the latter and continued talking.

Looking at this scene, Susan knew that Fuld had no idea that Geithner was also one of the clients of the MIGA fund.

She suppressed her laughter and considered asking the right person to step in to curb the wave of gorilla analysis and poaching.

But it’s really hard to find the right one. Gorilla is one of the most powerful people on Wall Street. Even Geithner was listening with a smile on his face. Others next to him, like Kane of Bear Stearns, had different identities. Equally, it would be nice if he didn't bet on the MIGA fund, let alone support it.

Susan's eyes turned and she saw Kong Yu, the Eastern President of MIGA Fund, in the distance.

This identity is not suitable, but it is a personal choice at least. You can't let Mr. Fang, who is chatting with Rubin, Summers and others, come over to quarrel, right?

She moved her steps, pretending to change her glass of red wine, and waved to the Oriental who was always wary of opportunities in the audience.

When Kong Yu saw the signal from the top circles on Wall Street, his eyes lit up and he walked over quickly.

However, when he approached, Northern Trust, a major customer, stood back in the circle without any expression.

Kong Yu didn't lose his composure. His heart had become cold during countless late nights when Mr. Fang ordered a huge gamble based on the market situation. Now he just accepted Mr. Fang's order to attract customers.

The president of MIGA Fund silently found a small vacancy, and soon understood Ms. Susan's intention. Northern Trust hadn't come in yet, so maybe it was time to look at his own performance to clarify the future of MIGA Fund?

"Hahaha."

Kong Yu first took out his cell phone and sent a quick text message to Mr. Fang, and then started with laughter without fear.

Others are afraid of the head of Lehman Brothers, but I don’t care!

Kong Yu is not even afraid of gasoline, he is just afraid of screwing up Mr. Fang’s affairs tonight!

A dozen empty shell SPVs have been registered in the Cayman Islands and Jersey through different channels!

The credit default swap CDS of major insurance companies have been tracing the combination of RMBS and CDO layer by layer!

Who is afraid of whom?

As expected, the Oriental's laughter interrupted Fuld's instructions.

Fuld only knew one Oriental at today's charity dinner, Fang Zhuo. When he saw such an impolite laugh, he immediately said displeased: "Why are you laughing?"

"I am Kong Yu, the president of MIGA Fund." Kong Yu first introduced himself to a circle of big shots, and then immediately moved out an existence that could be equivalent to Lehman Brothers. "I heard Mr. Fuld talk about the business of MIGA Fund, and I couldn't help but feel sorry for him. Your outdated news is funny, we are no longer just underwriting, we are now working with Goldman Sachs on the issuance of CDO securities!"

MIGA Fund is indeed engaged in this, but that was before, and now it is just a pretext for talking about it.

From the perspective of financial products, it is still not as good as Lehman Brothers' CDO, but MIGA Fund is barely a first- or second-tier player.

When Fuld heard "Goldman Sachs", he didn't expect to be refuted by the owner of the fund. He didn't get angry. He just said contemptuously: "You guys issued the fund together with Goldman Sachs? You spent a lot of money to get Goldman Sachs to put its name on it, right?"

This really hits the spot.

Not all CDO securities can easily find buyers. With the name of Goldman Sachs as a signature, it is easier to sell and make profits.

Goldman Sachs has a market price of 10 million to 15 million U.S. dollars. This price can get it stamped and certified.

Don’t think it’s too expensive. It doesn’t matter. If you don’t have the connections, you won’t be able to spend the money even if you want to.

Everyone present was an expert, and when they heard Fuld say this, they all smiled knowingly.

Kong Yu said calmly: "MIGA Fund and Goldman Sachs have always had a very in-depth cooperative relationship. Last year, Mr. Paulson and our boss invested in two well-known banks in China."

He pretended to ponder: "Oh, yes, we are also cooperating with Deutsche Bank and Bank of Washington. Now, we all maintain a happy consensus in the securities market. The size of the MIGA fund is certainly not as large as that of Lehman, but it is beneficial to the interests of customers." It has the highest confidence on Wall Street.”

Kong Yu raised his voice slightly and asked a question: "Lehman sells CDO securities to customers. Even if the profit is high, can it still be more profitable than us allowing customers' funds to participate in the securitization process?"

Fuld laughed loudly: "Let customers' funds participate in securitization? It can only be said that your customers are indeed very courageous."

Kong Yu also smiled: "There are risks, but there are also satisfactory profits. MIGA Fund has proven our ability to balance the two in the past. If Mr. Fuld believes that the securities market selected by MIGA Fund has made our clients have the courage, That’s fine, then I’m afraid we have to worry about Lehman even more.”

He shrugged: “After all, Lehman was much bigger than our fund.”

Fuld looked at the strange oriental man. He couldn't say that he was angry for a small person, but he was still a little angry.

The people around him looked at this scene and were a little surprised by the Eastern man's clear and systematic protection of his own fund. Many people were respectful to the gorilla.

Susan, who had brought Kong Yu here, admired the MIGA Fund CEO for being neither humble nor overbearing.

Fuld took a sip of the wine in his glass, reached out and waved to Lehman Vice President Benjamin, who was not far away, and then smiled disdainfully: "Do you think I don't know what kind of junk securities the MIGA fund does? You and Lehman talks about scale and risk?”

Benjamin, the vice president who is familiar with the business and competitors in the market, walked quickly.

At this moment, Fang Zhuo walked over slowly and asked with a smile: "What? Can't you talk to Lehman?"

He put his hand on the shoulders of Benjamin, who had just stood still, and turned him around with a little force. The latter maintained his unconscious respect for wealth and gave up his position without resistance.

Fang Zhuo nodded to the group of people, continued to look at Fuld, and said, "Lehman won't let me speak?"

Fuld didn't bother to blame himself for being interrupted by the MIGA fund's little guy. He just kept talking about the topic and said lightly: "Of course not. I was just talking about the risks of junk securities engaged in by the MIGA fund."

This is true without using Benjamin to provide data support.

The CDO securities cooperated by MIGA Fund and Bank of Washington learned from the latter. Bank of Washington likes to package some junk subprime debt. This is the power of example.

Fang Zhuo heard this and said in surprise: "Are there still junk securities? Aren't there only two kinds?"

He looked around at potential customers and said with a smile: "There are bonds that can help customers make money, and bonds that cannot help customers make money. MIGA Fund operates the former."

Fuld was stunned for a moment, this statement made some sense.

There must be junk bonds among bonds, but if you can sell junk bonds, you will turn risks into greater profits.

He looked at the oriental rich man in front of him and said without any verbal argument, "It seems that it is necessary for Lehman Brothers to set standards and teach customers in the market how to identify junk securities."

This sentence made the faces of several people watching change slightly.

A fund like MIGA is destined not to be compared with Lehman and Goldman Sachs, and the number of securities it handles will not be too many. If Lehman is widely advertised to talk about the quality of securities and conduct sales sniping, this may really cause trouble.

However, Fuld is the gorilla who can do such a thing. He has never been merciless. When he stabbed Goldman Sachs, he rushed to kill him.

Such a situation, such a few words of swords and swords, is likely to cause huge losses of actual interests. Isn't the price of the big boss's dispute a bit high?

Susan from Northern Trust couldn't help but frown, and regretted calling Kong Yu over. The excitement had escalated too much.

Phipps of Bessemer Securities looked at the Eastern Rich Man with interest, wanting to hear his response.

However, before Fang Zhuo could speak, President Gaitnagai, who was silently sipping red wine, said in a leisurely voice: "Don't set this kind of standard for one family, otherwise, you will set one today, and it will set another tomorrow. The stability of the securities market will What about sex?”

Fuld looked at the little Geithner with some surprise and said to himself: "The stability of the market is to prevent users from suffering losses due to junk securities."

At this time, another voice sounded from the side: "Are the topics of drinking and chatting so serious now?"

Summers, the host of the charity dinner, arrives.

Fang Zhuo said lightly: "Lehman wants to establish standards for the quality of securities. It sounds like Fuld has some misunderstandings about our MIGA fund."

Summers took everyone's look into his eyes, smiled, and said in surprise: "Can't the different risks and returns of the same RMBS (Home Loan Mortgage Securities) in our market satisfy you guys?"

Even for the same bond, different people can choose different grades of it, thereby obtaining different returns and taking different risks.

Fuld was still about to speak, but he heard Summers continue: "It seems that the first thing we will do when we set up the New York Economic Institute is to explore the U.S. bond market. If the market mechanism can really be improved, I will definitely go to the insurance company." Erson, let him provide support as soon as possible."

The head of Lehman frowned when he heard Paulson's name, and his words were choked in his throat.

Fang Zhuo mentally praised Teacher Xiao Sa for showing his sense of ownership, and in a blink of an eye he saw Rubin coming over while chatting earlier.

He made way for the big boss.

Rubin was not polite. After standing still, Fuld, who saw Lehman for the first time, said something that was beyond Fang Zhuo's expectation: "Although I don't know what you are talking about, when I saw Fuld, the gorilla, I I just know he can’t do anything good.”

The nickname "Gorilla" is mostly a derogatory connotation for competitors in the industry. Lehman's insiders and friends generally praise it as "Donkey Kong".

When Lehman shorted Goldman Sachs, Rubin had left Goldman Sachs and entered politics, and Fuld did not actually have a head-on confrontation with him.

But although Rubin's tone was a bit joking, the attitude of this kind of character was quite obvious.

First it was Geithner, then Summers, then Rubin, and Paulson's name was mentioned in the middle.

No matter how conceited and tough Fuld was, he still felt something was not right.

He reached out and took the wine glass that he had put down, showing an indescribable smile: "It's just a joke, you are shouting to fight and kill."

Fuld's tongue stirred up the red wine in his mouth. After all, he still felt energetic. He felt that the previous sentence was a bit of a sign of weakness, so he added: "Look at you, Lehman is not afraid of shouting and killing. Today is purely for the purpose." Looking at the New York Economics Institute, I admire Summers’ economic knowledge quite a lot.”

Fang Zhuo smiled and said: "Yes, me too, Mr. Summers and Mr. Rubin have unparalleled charm, which makes me fascinated."

He mentioned Rubin, who was not mentioned by Fuld. Although Teacher Xiao Sa did have a family background and was better at economic theory, Rubin was standing nearby.

Susan from the Northern Trust had seen enough of the excitement, and finally made peace, raising her glass: "Here's to the establishment of the New York Times Institute."

Cheers!

Cheers to the looming looseness of the New York Times that will eventually be squeezed into a ball by the financial crisis!