God of Corporate Hunting - Chapter 215



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◈ Episode 215 Credit Suisse (3)

Yoon Se-bin wasn’t easy either.

“I have attached the investment performance from my time as head of the PE division of Korea Bank to the recent establishment of the asset management company. The most important core in an investment bank is investment performance. I have achieved considerable results so far. It will be the same in the future.”

The newcomer who was looking through the documents made a surprised expression. The UBS management team was in an uproar.

The newcomer, who had regained his composure, asked again.

“But isn’t this because the scale is small? Or is it because of the unique characteristics of Korea? Looking at the world, there are quite a few investors who have made extraordinary profits in a short period of time. However, it is rare for someone to make profits in the long term.”

“The scale is not small. There are investments as large as 1 billion dollars. And the profits have been consistent, not just once or twice. Of course, I don’t think that this kind of rate of return can be achieved with a larger amount or over a longer period of time. However, what is interesting to note is that there have been no investment failures.”

“Oh, I see. What is the reason?”

Yun Se-bin, who briefly locked eyes with Nam Woon-myung, answered confidently.

“Isn’t it a system that is organized and has a unique feel as an investor?”

“What?”

“World-class investors introduce various techniques, but even if you follow those techniques, the profits are different, right? You can’t ignore their innate sense. I…… no, I think our consortium has the ability to avoid risk internally.”

The newcomer nodded and asked.

“Is that also the case with Silicon Valley Capital, which was recently acquired?”

“Currently, Silicon Valley capital is quickly normalizing. I believe it will prove to be a great investment performance in the future.”

“Is Credit Suisse also in the same position? Simply to make a profit?”

“Credit Suisse needs to be managed. Although we have run small organizations so far, I don’t think it’s any different for large organizations.”

Various questions continued to be asked.

Yoon Se-bin conveyed Credit Suisse’s vision.

He argued that stability is as important as the size of a financial institution. He said that large size does not guarantee safety, and that the larger the size, the more difficult it is to deal with problems like this one.

Credit Suisse has branches all over the world, and each branch has been carrying out its own investment business. It presented a vision to reorganize the organization by taking the independence of each branch to the next level so that investment failures in one place do not spread to others.

“How are you going to restructure?”

“We will consolidate and close branches that are being managed arbitrarily. There is nothing we can do about branches that are underperforming. This will result in a restructuring of personnel, but we will end it in a way that minimizes it.”

“Will that solve the crisis? UBS is currently planning to lay off more than 30% of Credit Suisse’s staff.”

“The core of this crisis is due to bad investments, not the fault of the employees. The person who approved the investment is the final decision maker, so it is not the fault of the person in charge alone. We have considerable know-how in that area.”

Yoon Se-bin’s confident attitude seemed to have caught on, as the UBS executives, including Saen, responded positively.

“Let’s take a short break and then resume.”

Break time passed quickly.

Since Yun Se-bin handled things so well, there was nothing Nam Woon-myung could do to help.

During the break, they reviewed their strategy, fixed the shortcomings, and prepared for their next speech. Jo Ha-neul requested the necessary materials from the Seoul headquarters.

When the meeting resumed, Saen said,

“It’s great in many ways. However, the biggest concern is that I have no experience in managing a large bank. If I can improve on that, I think it could be a great deal.”

“How can I improve it?”

“We want major banks to join the consortium.”

Perhaps it was a natural request for UBS.

The risk was too great to bring in Korea Asset Management, which had no experience in managing a bank, as the largest shareholder.

“Would it be Korea’s Korea Bank?”

It was the only card Yoon Se-bin could play.

The newcomer waved his hand.

“Korea Bank is a commercial bank, not an investment bank. It has very little investment experience. However, it has the advantage of maintaining a large-scale banking organization. Rather than that…….”

The newcomer, who was flipping through the documents, stopped at one part.

“Currently, the major LPs of Korea Asset Management include Temasek, the Singapore sovereign wealth fund, and Abu Dhabi Investment Authority, the UAE sovereign wealth fund. It is a great advantage to have been recognized for our investment capabilities by these two places. We want to invest in places with such abundant funds. Is that possible?”

Before the problems broke out, Credit Suisse’s largest shareholder was the National Bank of Saudi Arabia.

“Want to invest in the National Bank of the UAE?”

“Yes, it would be better if it included the National Bank of Saudi Arabia.”

Their demands have become clear.

This means that national banks from multiple countries, including foreign national banks, should form a consortium to pursue the acquisition.

Yoon Se-bin sighed in disappointment.

How can we get the national bank of the country involved, let alone a private bank?

In particular, the Saudi National Bank refused to provide any additional support when this incident occurred. It is unlikely that the National Bank, which had done so, would be interested in Credit Suisse again.

I didn’t expect it to be an easy acquisition, but the difficulty level was just too high.

When Yun Se-bin shook her head, Nam Woon-myung asked.

“What will happen to the takeover price if we bring in the national bank?”

“We will hand it over to you for the amount that UBS acquired. You know that the amount is ridiculously cheap. That’s how urgent Credit Suisse was.”

The amount is just 3 billion Swiss francs, or 4.2 trillion won.

Credit Suisse’s share price plunged 30% at the time of the incident and is now more than 60% below that value.

In effect, you’re buying it for 10% of what Credit Suisse was worth a few months ago, and less than 5% of what it was worth at its peak a few years ago.

It was certainly an absurdly cheap amount, considering that the Swiss National Bank had provided a whopping 54 billion Swiss francs in emergency support to supplement liquidity and that a massive bond write-down of up to 17 billion dollars had been made.

Another advantage that could not be ignored was that most of the hidden bad debts were revealed while UBS was pursuing the merger.

It is an attractive proposal in many ways, but realistically, there are difficult obstacles…

“Okay. Let’s give it a go.”

Nam Yun-myeong stepped forward boldly.

It’s not Yoon Se-bin who doesn’t know his intentions.

Yoon Se-bin also agreed.

“Let’s try adding the national banks of the UAE and Saudi Arabia.”

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The meeting is over.

* * *

The three of them returned to the hotel and put their heads together.

“There’s no way that’s possible.”

Yoon Se-bin sighed and expressed his absurdity.

“We can’t argue with that. It’s because we are unknown.”

As always, name value is important. In front of global banks, Korea Asset Management and Mega Asset Management were nothing more than pyramids.

The Swiss authorities would not be comfortable entrusting such a large bank to them. If it collapses again, it could become the epicenter of a global financial crisis.

It’s not just a problem within Switzerland.

“What should we do now?”

Yoon Se-bin asked for his opinion.

Nam Woon-myung read a strong desire for achievement in Yun Se-bin’s dark eyes. He wanted to make her wish come true.

Nam Woon-myung decided that it was not something that could be done if the two of them worked hard.

“Let’s give it a try. Fortunately, we have a connection with Saudi Arabia and the UAE. Right now, time is of the essence, so we have no choice but to split it up and take charge of each side. Which one will you be responsible for?”

Yoon Se-bin, who had been thinking hard, answered.

“I will go to UAE and meet Ashur.”

It’s not a reckless heading to the bare ground, since he has a connection with UAE Vice President Assur.

“Okay, I’ll take charge of Saudi Arabia.”

Saudi Arabia has a connection with Daehan Marine through the floating city of Oxagon. Although it is not him, Bae Joo-hyun has built up quite a connection with Saudi politics. It may be possible to try using that connection.

So I set the mission and packed my bags.

I need to fly to the Middle East right now.

Yoon Se-bin muttered as if he was displeased.

“I didn’t want to meet Ashur again…….”

“Do you hate Ashur?”

“That’s not it. It’s just… ever since then, I’ve been feeling a little uneasy.”

“cheer up.”

Nam Woon-myeong thought that Yun Se-bin’s worries were for nothing.

* * *

I met Bae Joo-hyun at Saudi Riyadh Airport.

While Nam Woon-myeong was on his way to Switzerland, he urgently called Bae Joo-hyun to Saudi Arabia.

Of course, Bae Joo-hyun has been visiting Saudi Arabia as if it were her home recently, so it wasn’t an unreasonable business trip.

Next to Bae Joo-hyun, his assistant, Manager Lim Jong-wook, was following him like a shadow.

“Why do you want to meet me in Saudi Arabia? It’s not fun here. It’s a country where you can’t even drink alcohol. Next time, I’ll go to Korea and have a drink and women…….”

In Bae Joo-hyun’s daily life filled with alcohol and women, Arab countries are boring places.

“I stopped by to take a look at the floating city.”

“Ah! There! There’s nothing to see there, it’s still a construction site.”

Despite the grumbling, Bae Joo-hyun took him to the floating city scene.

A huge island floating in the sea came into view. It is a huge artificial island and industrial city 17 times the size of Yeouido.

On this artificial island that is barely taking shape, we can discover the amazing will of mankind to overcome nature.

“This is how it works!”

I had seen it in many documents, but seeing it in person was a different feeling. I was filled with pride at the fact that Daehan Marine Engineering was carrying out such a large-scale construction project.

Perhaps Bae Joo-hyun also felt great pride here and worked even harder at management.

After following Bae Ju-hyeon around the site and exchanging greetings with the dispatched workers, Nam Woon-myeong brought up the matter.

“Do you know anyone at PIF, the Saudi sovereign wealth fund?”

“To PIF?”

Bae Joo-hyun, who had been rolling her eyes, smiled faintly.

“Is it there?”

“Of course. Who am I? It’s already been a year since I started eating Saudi Arabian rice!”

It’s been a long time since I first met Bae Joo-hyun.

That means it’s been that long since he returned to this world. I’ve been so busy with my day that I’ve forgotten the passage of time.

While he was overcome with emotion, Bae Joo-hyun continued speaking.

“Of course, I don’t know the richest person in the world or the most powerful person.”

The Saudi royal family owns a whopping 2700 trillion won in oil money! Of that, the Saudi sovereign wealth fund, PIF, manages approximately 800 trillion won.

“Then who can communicate with me?”

“Mac Crain. He was once called the right hand man of the powerful.”

I remember hearing the story of Nam Woon-myung and Mackline.

McClain, a Citigroup alumnus, first got his start in the world of power when he listed Saudi Aramco, a state-owned company, on the New York Stock Exchange. Since then, he has led Saudi Arabia’s transition away from oil and expanded his investments around the world.

He also had a close relationship with Credit Suisse. He had arranged for PIF to invest in Credit Suisse.

Of all people! Credit Suisse, in which he invested so much, recently went into crisis and suffered huge losses, so I wonder if McClain can still exert influence. It would be good if he wasn’t kicked out.

Although it is only a loss of about 2 trillion out of 2700 trillion, it is a scratch on Saudi Arabia’s pride. Just a small one.

‘Well, in this neighborhood, 2 trillion is like the price of a piece of gum.’

Suddenly I sighed.

“No one else?”

“McClane is the biggest shot. He’s the only financial figure I know who can talk to the powerful.”

I can’t say no to Bae Joo-hyun who talks like she’s bragging.

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