The Magician’s Memorial - Chapter 262



Only Noblemtl

262. Countdown (1)

Federal Reserve Board of Governors building in Washington.

Today was Saturday, so most employees did not come to work.

Dozens of vans were on standby around the building, and many bodyguards were guarding the building.

I had to undergo dozens of body searches to enter the government building.

Only then could I enter the most secure space in the government building.

“Vice President Kim, welcome back. You had a hard time coming from far away.”

“I am truly honored to be invited to this event.”

All attendees were already waiting.

I can’t believe I can see the people who run the world economy in one place like this.

First of all, the President of the United States, the Chairman and Board of Governors of the Federal Reserve, and the Minister of Finance and officials.

About 20 people were gathered.

I was assigned a seat across from the Federal Reserve Chairman, receiving harsh looks from them.

Before we even sat down, President Bush started the meeting.

“Now that Vice Chairman Kim has arrived, let’s continue what we were saying. Vice Chairman Kim says the subprime mortgage crisis is serious, but why are the Federal Reserve and the Treasury Department saying there is nothing wrong?”

“The Federal Reserve’s position is clear. The U.S. financial system is more reliable than any other country. It is clear that real estate prices are being shaken by interest rate hikes, but they are still moving within the expected range and are merely in a phase of adjustment.”

The Fed’s official position has not changed at all.

This was the Fed that said this before the regression and a few months before Lehman Brothers collapsed, so it was natural that it still maintains this position.

“This cannot be seen as a simple adjustment phase. We are seeing defaults popping up all over the country, and many banks and mortgage companies are foreclosing on homes.”

“Does that matter? It’s natural for the house to be seized if you can’t repay the loan. From the bank’s perspective, it’s not a big loss since they seized the house instead of the loan!”

“Banks need cash now. Just because they own a lot of houses doesn’t mean they will have cash. And with real estate prices continuing to fall, who would want to spend a lot of money to buy a house!”

My mouth hurt even as I spoke.

I can’t believe I have to say this in front of the people who run the world economy.

“We acknowledge that the real estate market is difficult. However, this is only a real estate crisis and there is no possibility of it spreading to other markets. So, there is no need to take it too seriously.”

“You are too optimistic. I believe that most investment companies on Wall Street will go bankrupt due to this real estate crisis. It is clear that it will have a negative impact not only on the real estate market but also on the American economy.”

It was only for a moment that the conference room became a mess.

Everyone, including those who support the Fed’s opinion and those who do not, chimed in.

However, since there were still more people supporting the Fed, they were on the defensive, and President Bush also seemed to be leaning toward the Fed.

“Well, after listening to the story, it seems like the Fed has a point. I don’t think there’s any need to make too much of a fuss.”

“That’s right! Even if the real estate market deteriorates, it can recover quickly because America’s financial system is functioning properly.”

“I cannot agree with the statement that the American system is working properly.”

Did I touch Yeokrin?

There was a lot of shouting from people supporting the Federal Reserve.

“Are you distrusting America now?”

“It’s not that I distrust the United States, but I distrust the financial system. Can anyone explain why the credit rating of subprime bonds remains the same when mortgage companies are going bankrupt one after another and the amount of defaults is increasing day by day?”

The shouting died down.

Because everyone here agrees that the risk of subprime bonds has increased.

“Credit ratings are not determined in a short period of time. It is a matter for the rating company to carefully decide.”

“How long do we have to wait? Does it take until a few investment banks go bankrupt for our credit ratings to be adjusted? Then why do we need credit ratings?”

“We cannot dispute the rating company’s own regulations.”

“Can’t you do it? Or do you don’t want to do it? Isn’t this a strange situation to anyone? Then shouldn’t the Federal Reserve step in and investigate to see what’s going on inside? Isn’t that why the Federal Reserve exists?”

Was I a little harsh?

The people on the Fed side clenched their fists and looked at me like they were going to eat me.

“We are conducting our own investigation. The results of the investigation will be released soon, so please wait patiently until then.”

“Okay! Everyone, calm down. First of all, shouldn’t we try to resolve the current situation as much as possible?”

The Deputy Minister of Finance intervened.

Unlike Yeonjun, he calmed down the situation in a soft tone and continued talking.

“The reason I brought Vice Chairman Kim here is not only to hear his opinions, but also to make a suggestion.”

“What offer do you mean?”

“Would you like to acquire New Century Mortgage Company? Since it is the second-largest mortgage company in the United States, you could greatly increase your influence on Wall Street.”

Who do you think is a fool?

Acquiring a company that will soon file for bankruptcy?

No matter how poor I was, I had no desire to take over such a company.

To be exact, I didn’t start fishing to catch minnows.

“I’m not very interested in acquiring a mortgage company. I’m sorry.”

“If you are concerned about your debt, there is no need to worry. We will forgive a portion of your debt. We can also provide you with various policy-related help.”

The intention was to throw a bomb at me.

Actually, it didn’t matter if I accepted it.

Of course, the second-largest mortgage company would have a huge amount of debt, but SAVE Investment Company’s financial power was enough to handle it.

“I am grateful that you are even providing debt relief, but I am not very interested in mortgage companies. I am not interested in mortgage companies unless a Wall Street investment company or insurance company comes up for sale.”

“Hmm, you are too greedy. If you eat food that you cannot digest, your stomach will explode.”

“Because my intestines are very strong. I can digest rotten meat well. However, it is not suitable for a company of the size of a mortgage company, so I will decline.”

It let me know that I was targeting bigger prey.

There were people who thought my greed was excessive.

However, you will find out in a year or two that it is not an overindulgence.

“Hmm, let’s discuss the acquisition of the company later. How about considering lowering the interest rate instead?”

“Absolutely not! Real estate is said to be difficult, but if the government steps in and lowers interest rates, all efforts made so far will be in vain. Rather, it will only have the adverse effect of prolonging the difficult situation.”

President Bush seems to be impatient as well.

The interest rate cut card was quietly brought out, and the Federal Reserve strongly opposed it.

But I can’t believe I attend all these meetings.

Is it right for me, a stranger, to attend what is essentially a national conference in the United States?

Just because you have honorary American citizenship doesn’t mean you’re really considered American, right?

“What do you think, Vice President Kim?”

“To tell you my honest feelings, the golden time has already passed, whether to lower or maintain interest rates. Lowering interest rates will have no effect unless the entire financial system is changed.”

“This person! Why does he keep saying things that distrust the American financial system? The Federal Reserve will be responsible for that problem!”

The Federal Reserve raised its voice.

This was what I intended.

They continued to make me angry by poking me where it hurt, and eventually made me say that I would take responsibility for the financial system.

“Then there is nothing more to say. The Fed will take responsibility, so what more can I say?”

“Hmm, Vice President Kim, let’s go now. I listened to your opinion carefully and will try to reflect it in this policy.”

An order was issued from President Bush to congratulate the guests.

His expression looked quite displeased, and he seemed to think he had called me for no reason.

But he was bound to call me again sooner or later. And that too very soon.

* * *

From Washington I returned to Wall Street.

Meanwhile, a team leader urgently ran to me to ask what had happened at SAVE Investment Company.

“How’s things going in Washington?”

“I created the situation just as I wanted. I created an atmosphere in which the Federal Reserve took full responsibility for this incident. But what happened?”

“The representative of Quantum Fund came to visit. I think he came as a representative of Wall Street investment companies.”

“Representative George came to visit? When did he come?”

“We arrived yesterday evening and have been waiting for the representative ever since.”

I think he’s planning on pretending to be Jibakryeong until he meets me.

I had received a lot of help from George so far, so there was no reason not to meet him.

“Where are we waiting?”

“I’m waiting for you in the reception room.”

I dragged my tired body and headed to the reception room.

When I opened the door and entered, CEO George welcomed me warmly.

“Hasn’t it been too long? But wasn’t there a time when we were very active as allies? Why is it so hard to see your face?”

“Strangely, there have been a lot of people asking to see my face these days, so it’s been difficult to find time. So what are you waiting for me for?”

George takes a moment to catch his breath.

He looked as apologetic as possible and got to the point.

“Wall Street investment companies are requesting financial support. Isn’t SAVE Investment Company the company that holds the most cash on Wall Street? Can you provide enough funds to put out an urgent fire?”

“Would there be a request for support from not just one or two Wall Street investment companies? And why is CEO George expressing regret on their behalf? Is the Quantum Fund also in need of financial support?”

I had no intention of providing support to other investment companies on Wall Street.

However, if Quantum Fund asked for help, I was willing to provide support to the extent that it would not go bankrupt.

“Hmm, the Quantum Fund doesn’t really need financial support. Seeing that you weren’t interested in subprime mortgage derivatives at all, we didn’t even touch that area.”

“So where are you requesting support?”

“To be honest, it’s like most investment companies on Wall Street.”

Representative George was truly a great person.

Of course, I distributed a lot of information, but CEO George was almost the only person who used the information I distributed.

In some ways, George was the person who trusted me more than a team leader.

He must have known that I smelled like money because he smelled like money.

“Please tell me that we don’t have the funds to support you right now. By the way, has CEO George also signed up for derivatives insurance?”

“Honestly, I signed up for very little, not a lot. It’s only $100 million.”

“We’re going to have a lot of fun. If this continues, SAVE and Quantum may be the only investment companies left on Wall Street.”

“Then isn’t it good for us? Then I’ll put in a good word to the investment companies on Wall Street. So be sure to call me when you’re having fun.”

Representative George had a different reason for coming.

He announced his intention to join hands with Wall Street investment companies as an excuse.

Of course, the delicious food was ours, and we could share as much of the leftover scraps as we wanted.