God of stocks chapter 411

Chapter 411 The moment when imagination becomes reality (3)

Lee Sang-hoon, who was broadcasting from one place to another, finally saw a channel broadcasting the news. The screen was showing Wall Street in US local time in the background.

“This was US correspondent XXX.”

A person traveling to the US as a correspondent was holding a microphone and greeted with the building behind him. He then zoomed in on the background and grabbed the sign of the building behind him.

“what? Why do you conduct the news in front of the Lehman Brothers headquarters building? What happened?”

It was Lee Sang-hoon, who thought there would be nothing special because it was Sunday afternoon in the US on a weekend in local time. Knowing that the US keeps the weekend like a sword, the thought that if a story came out, it might not be a normal story passed through Lee Sang-hoon’s mind.

On Friday, the US plunged Lehman and Merrill Lynch, and the AIG plunged more than 30% on concerns over mortgage losses, pulling the index down. However, at the end of the market, it was heard that Lehman’s takeover may be confirmed, and the Dow index ended with a weak bond, and Nasdaq and S&P went up to a strong bond.

Both the United States and Korea saw this weekend as the biggest turning point.

In order to save Lehman, the news that the heads of the U.S. finances are conducting relay negotiations from Friday evening was reported, and the BoA and Barclays, which can take over Lehman, are insisting that Lehman cannot be acquired without the support of the US government. Had been delivered.

Lee Sang-hoon wondered if the U.S. government made a decision to promise the BoA support and have Lehman embraced.

And in order to tell the story, I thought that the news and the correspondent were talking about Wall Street in the background.

“I wouldn’t save the second time… … . surely… … . Was there a consignee? It would be a big deal if it came out… … . I can’t come out… … .”

Second, he believed in irony that it would not save. So I threw the game and was watching the situation.

Although the Chuseok holiday and the stock market were in a difficult situation, I thought it would be okay. However, with Lehman in the background, it seemed uncomfortable that even a correspondent appeared on the news during the Chuseok holiday.

Lee Sang-hoon picked up the water cup he was holding, drank it in one bite, and turned to another channel. This is because I believed that if there was a place where the news was not over yet, there would be an indication of the current situation.

If a buyer came out, Monday’s surge was obvious. Of course, I don’t know how far the surge will go, but anyway, since it was expected that a huge increase in the short term, Lee Sang-hoon turned the channel with a tense mind.

“… … . On Sunday morning, local time, Lehman Brothers negotiated the sale of Lehman with representatives from major Wall Street financial institutions such as Barclays for the acquisition. However, after repeated debates, Barclays, Britain’s third largest bank, which was considered the most promising takeover candidate, kicked off the bargaining ground in the afternoon and suddenly withdrew, quenching the atmosphere of the bargaining ground.”

“Barclays is withdrawn. So BoA? BoA?”

It was Lee Sang-hoon who got impatient. It was a displeasure not to tell the next story soon. I felt like I wanted to hear the next story quickly by increasing the playback speed or skipping it.

Lee Sang-hoon took a deep breath with the thought that he had to calm his mind. If an accident broke out anyway, I couldn’t cope with the situation. First of all, I thought it was the first thing to have a calm mind.

Lee Sang-hoon sat on the sofa, remembering that there was a word called BoA or Barclays.

“As a result, representatives of financial institutions suggested a plan to separate good and bad assets into bad bank and good bank, and then the acquirer to take over only good bank, but even this, negotiations broke down due to the BoA’s rejection. The BoA repeatedly expressed its intention that it was not interested in the acquisition of Lehman unless it was accompanied by government support, and the reason for the breakdown was that the US government also showed difficulty in aid.”

“BoA also breaks down? then? Then what happened?”

When the news of the BoA’s breakdown came out, the mind that had been hardly subsided began to rattle again. My heart was beating fast and I thought it might burst if I go on.

Lee Sang-hoon, feeling impatient, opened his eyes wider and looked at the screen. I wanted to hear the conclusion quickly, but I was explaining the reason why such a conclusion came out if Lee Sang-hoon had already informed the conclusion before turning the channel.

Lee Sang-hoon drank water from a water bottle with a burning thirst. And only after I looked away from the screen, the results began to come through.

“In the end, the Lehman Board of Directors was known to have approved a filing for bankruptcy protection in the bankruptcy court in New York as it was no longer negotiable.”

“bankruptcy? bankruptcy? Bankruptcy? Lehman is bankrupt?”

Lee Sang-hoon jumped up from his seat. The water bottle I was holding spilled and wet the floor and feet, but I couldn’t feel anything. The only sound that lingered in his ear was “Lehman bankruptcy.”

All I heard was the sound of’bankruptcy’ and all I could see was the image of Lehman Brothers headquarters on the screen.

It seemed that Lee Sang-hoon’s heart was coming up through his throat and protruding through his mouth.

“A major foreign press is reporting that the liquidation of Lehman, a Wall Street investment bank with a history of 158 years, is imminent. It is believed that the final settlement of bankruptcy will take place around midnight, and there are reports that Wall Street financial institutions have already begun preparing for bankruptcy, such as preparing for offsetting of closed transactions.”

“Fuck. Bankruptcy?”

Lee Sang-hoon looked up at the ceiling and screamed. The house was reverberating with Lee Sang-hoon’s voice.

“Lehman’s debt is estimated at $613 billion, the highest ever filing for bankruptcy protection. The New York Financial Market announced that it will temporarily open the market from 2:00 to 4:00 local time so that dealers can trade derivatives such as stocks, interest rates, foreign exchange, and futures to reduce Lehman’s bankruptcy losses. . Currently, Lehman is showing a drop of 95% from $82 to less than $4 due to this incident.”

“bankruptcy. bankruptcy. bankruptcy.”

Lee Sang-hoon was unable to come to his senses. It was impossible to tell whether this was a dream or reality because what I had dreamed of manifested into reality. I expected it, but I didn’t know what to do with what turned out to be reality.

“the phone… … . I have to call, where should I do it?”

I felt like I had to talk to someone about this. It seemed that it would only be calm if I shared this feeling with someone. My heart felt like I was going to burst, and my head grew farther.

Lee Sang-hoon picked up the phone and turned the stored numbers.

“Heeyeol? no. If you call her, you’ll be more fussed than me. Not Heeyeol… … . Cho? okay. I’ll have to talk to Joe on the phone.”

I thought that Director Jo would make myself a little calmer.

Follow me.

There were no signals, and Director Joe answered the phone. Beyond the handset, I heard the voice of Director Cho, who skipped greetings.

“This brother also called after reporting the news. Congratulations. You did what you did right.”

As soon as he answered the phone, he said congratulations.

I knew Lee Sang-hoon’s position because he was Cho, who was watching SH Partners’ position in his palm. He was a person who only talked about results rather than interfering with Lee Sang-hoon’s position. Since such a person was celebrating, what he saw was not a lie.

“Thank you. But do you know what happened?”

“It’s exactly what I saw in the news. Financial companies and government officials in the United States faced each other, but there was no answer. In the end, Lehman could not stand first and applied for bankruptcy protection. There was a story that there was already a run out of liquidity and it was impossible to go past the weekend. But I didn’t know that the debt would exceed $600 billion, three times that of the $200 billion we figured out. It would have been a real big deal if I took over.”

Director Cho, who was at the center of the Lehman acquisition process, even smiled in his voice as if recalling the time. From his words, I felt that the current situation was rather fortunate.

“Iknow, right. What do you think will happen in the future?”

“A story from the United States is that the BoA and Merrill Lynch, who have left the Lehman acquisition, have entered into negotiations. There is a story that Merrill Lynch, who judged that they would fall if it went like this, grabbed the BoA and saw Lehman collapse, and that the acquisition will proceed in the form of funding the BoA. And AIG is also preparing a self-help book right now. There is a story that if you do something wrong, the embers will spread to AIG.”

“AIG too? If you go to AIG, isn’t this a different class?”

In the case of Bear Stearns and Lehman, direct damage to consumers was not large. In particular, in Korea, it was so unfamiliar that few individuals contracted Lehman’s products.

However, there were many people who signed up for AIG insurance in Korea as well as AIG is considered as the world’s largest insurance company. The scale was also the size of Lehman’s double, so the aftermath wasn’t the place to end as it shook the market.

“If the AIG collapses, the Great Depression can be ridiculously serious. Therefore, there is a story that they submit a plan to sell their subsidiaries to the government and apply for bailout from the government. It is said that the first request for emergency assistance was $40 billion. AIG is so large that it is impossible to negotiate acquisitions, so it cannot be saved unless the government comes out.”

“It’s upset.”

“It was upset. I was going to take over such a place… … . Now every time I hear the news and the news from our people in America, it’s getting goosebumps. From yesterday past midnight, the news came in an emergency and I stayed up all night.”

Lee Sang-hoon learned that a big deal had happened in the United States while he was drunk and fell asleep.

“Lee brother. Can I tell you a more funny story?”

“Yeah? A funny story?”

“Neither is the bank of Korea upset right now.”

“The Bank of Korea? What happened?”

“This is Off the Record. You can’t go anywhere and talk.”

Lee Sang-hoon was curious about what Jo Young-jin, who usually did not put conditions on talking with himself when he was talking with himself, was cracking down so far to talk.

“You know, I’m not a speaker.”

“Hhhh. I know. You only talk to this brother on your own. Nothing else, they say the New York Office of the Bank of Korea is in a riot.”

“Is the Bank of Korea New York Office? Does it have anything to do with the Bank of Korea and Lehman?”

“It does matter. a lot. Do you know it is a REPO? It is a repurchase conditional bond.”

“Repo? no. I don’t know. I can only hear the name and imagine.”

It was the first time Lee Sang-hoon heard of it because it was not a transaction between individuals.

“If I explain in detail what REPO is, the story will be longer… … . To put it simply, there is a bank invested in Lehman’s REPO now. I can’t retrieve this now, so it’s called frantic.”

“You invested in Lehman?”

“Well, I must have invested before this. And because of the investment that did not know that this would happen, it is impossible to say what he invested, but he has not recovered the investment yet. Of course, it was too easy whether it was because he knew it would be taken over by the KDB or because Lehman believed it would not collapse. The head of the Korean bank has done something that cannot be seen.”

Lee Sang-hoon was thinking that it wasn’t negligence beyond the ease. It was hard to understand that Lehman hadn’t recovered the money until Lehman filed for bankruptcy where he should be more aware of Lehman’s risk than anyone else.

Everyone knew that Lehman was working tomorrow. Even if I didn’t know whether it would go bankrupt like today, it would be natural to recover the money if it was in a dangerous place, but if I didn’t do it, I thought there was a problem.

“Well, it’s not that they don’t really understand. If you liquidate in the middle, you have to pay a fee. But that amount is a problem.”

“If the Bank of Korea was enough to invest… … . Isn’t it a small amount?”

“This is Article 7. Article 7. Hahaha. Does this make sense? There is currently 7 trillion won of the Bank of Korea in Lehman.”

“how much? Article 7?”

It wasn’t a regular bank, but a Korean bank, so I thought it would be extraordinary. However, I couldn’t even imagine it would cost a trillion or two pennies.

“Now, the desks at Lehman headquarters are crowded with employees of financial companies from all over the world, so they can’t even get into the office, and they’re running around.”

“Where did the director hear such a story?”

“I guess these cubs are calling here and there to get a connection to the office if they were in a hurry. It wouldn’t be enough to hide it, but it was very poop. So, I heard it over.”

“Are you really saying that Lehman really didn’t know it would be like this?”

“I do not know. I think I wasn’t interested more than I didn’t know. There are thousands of pages of reports that we reported to the Korea Development Bank every day and even the last negotiations broke down. I don’t know whether the KDB didn’t speak or whether the Bank of Korea didn’t listen to the KDB, or where the problem was, but the Bank of Korea was in trouble.”

“It’s Chuseok, so it’s not that I missed it for a break, right?”

“That also makes sense. Hahaha. I missed it for a holiday. This is also amazing.”

Jo Young-jin was smiling, but Lee Sang-hoon could not. This is because it was a fact that proved how problematic the government system was.

“Well, anyway, it will work. Anyway, it’s worth congratulations to this brother. It will be worth seeing tomorrow.”

“Thank you.”

“I am more expert in the stock market than me, so just refer to my opinion. Don’t release that position easily. It will not end with Lehman bankruptcy.”

“It doesn’t end with Lehman?”

“Because Lehman went bankrupt, wouldn’t the aftermath be crazy? What our company pays most attention to is the exchange rate. You know? What is the exchange rate right now? The exchange rate swells, the US consumption market swells, and the Korean market swells in the aftermath… … . Whatever it is, won’t there be a big wave once? If an earthquake occurs in the depths of the sea, a tsunami must hit the shore once.”

Jo Young-jin was laughing at the story of a harpoon. Somehow, he seemed to see now as an opportunity.

Lee Sang-hoon said he knew and hung up Jo Young-jin’s phone.

korean novel God of stocks chapter 411

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