The Magician’s Memorial - Chapter 265



Only Noblemtl

265. Countdown (4)

CITI Group, the world’s largest financial group.

Each CITI Group executive was a person of enormous influence.

Wherever I went in the world, I received the best treatment simply because I was an executive of the CITI Group.

Their appearance in the executive meeting room was as calm as sheep in front of a wild beast.

“Did you mess things up just because I wasn’t in the chair? Everyone, if you have any voice, please speak up!”

The only person who screams in the executive meeting room.

It was Sandy Weill, who created the world’s largest financial group.

He resigned from his position as chairman due to corruption charges, but was still leading the CITI Group as the king.

“I’m sorry. The debt ratio has increased significantly due to the deterioration of the real estate market. However, we are reducing costs by reducing staff, and we can reduce the debt ratio by closing overseas businesses and selling subsidiaries.”

“It looks like I’m putting the company and business I’ve built into someone else’s mouth. So who told me to increase the leverage ratio by 25 times for investment!”

The reason CITI Bank got into its current situation was because of leverage.

Since the leverage ratio reached 25 to 30 times, CITI Bank could not overcome the current situation with only its cash assets.

It was Sandy Whale who spoke as if he only found out about it today.

However, leveraged investment would not have been possible without his permission as the king.

Still, no one could refute his words.

“And what about the subprime mortgage bond insurance product? Who approved the insurance contract that pays more than 20 times the amount as insurance!”

“It was decided through an executive meeting. The conditions for insurance payment have not been fully met yet, but if the current real estate market atmosphere continues until next year, the conditions may be met.”

“We signed a lot of insurance contracts with SAVE investment company and fintech bank.”

The status of SAVE Investment Company on Wall Street had increased significantly.

Sandy Weill knew it well because it boasted a higher return on investment than any other investment company and had never made a failed investment.

And there was another reason I couldn’t help but know.

This was because it was the company that Dimon, who was once his student and best partner, belonged to.

The reason I was familiar with fintech banks was the same.

It was impossible to know because it was a bank founded by Dimon independently from SAVE Investment Company.

“SAVE Investment Company and FinTech Bank came to us after identifying the risks of subprime mortgage bonds in advance. It is clear that this was an intentional act to trap us.”

“Don’t Wall Street know that the person who got hit is a fool? Are they going to say that the insurance contract is invalid because they intentionally set him up?”

Sandy Whale roared.

All executives bowed their heads and remained silent.

Unlike other executives, the person who held his head high raised his voice.

“In order to cope with the current situation, we need to secure cash assets as soon as possible. And insurance issues must be resolved before conditions are fully triggered to survive.”

“Is there anyone here who doesn’t know that?”

“Everyone knows the solution, but no one is coming forward. So I will try to solve it. I will meet with SAVE Investment Company and Dimon and negotiate.”

Sandy Weil had a soft look in his eyes, unlike when he dealt with other executives.

Since the executive speaking now was his eldest daughter, Jessica Weil, he could not say anything harsh.

And since he was the child who would succeed him as the head of CITI Group, he was not allowed to criticize in front of other executives.

“Okay, give it a try. If you succeed this time, no one will doubt your abilities.”

“I will definitely come back with good news.”

Jessica was confident.

It was a confidence that came from having known Dimon, who holds a large amount of insurance, since childhood.

There was a time when she really thought of him as her blood brother, and she believed that Dimon thought of her that way too.

* * *

Fintech banks dominate Silicon Valley.

Although the economy was shaken by the real estate market, a lot of money was still flowing into Silicon Valley.

Many startups have received investment through innovative ideas.

Since they did not need to use the huge investment right away, they kept it in a bank and mainly used fintech banks used by big names in the IT industry.

Therefore, it was a fintech bank whose size was growing day by day.

Jessica Weil, who visited a fintech bank for the first time, was surprised by its scale, which was larger than she expected.

“The bank manager is waiting inside.”

“I still make appointments on time.”

She moved to the bank president’s office with confident steps.

Although fintech banks are doing well in Silicon Valley, he was the successor to the world’s largest financial group.

She confidently entered the bank president’s office.

When the door closed and I was left alone with Dimon, I smiled and said words of conversion.

“Oppa! It’s been a while. I really missed you.”

“Hmm, please be polite. This is not a private situation.”

Dimon hit the iron wall.

Seeing Dimon like that, Jessica was beyond shocked and felt betrayed.

How could the person who cared for him so much give him a worse look than others?

“You’ve changed a lot.”

“Thanks to someone, I have changed a lot. Let’s talk about small things later, and for what purpose did you ask to meet me?”

“I came here to ask for help. I want to sell a subsidiary owned by CITI Bank to a fintech bank. I also want to negotiate the termination of the insurance contract.”

Dimon laughed at the current situation.

I can’t believe he was a person who didn’t know how to understand the situation like this.

He tried to push this person out and make him the successor to the company just because they were of the same blood.

“Director Jessica. I understand that you want to sell a subsidiary, but I don’t understand that you want to negotiate the termination of an insurance contract.”

“I will pay five times the premium you have paid so far. Instead, please cancel the insurance. Aren’t you satisfied with these terms?”

Only 5 times the insurance premium?

It was an insurance policy that, if the insurance conditions were triggered, you could receive not just 5 times, but more than 500 times more.

“These are absolutely impossible conditions. If I accept those conditions, the fintech bank’s customers and shareholders will sue me for breach of trust. Please present negotiable conditions. It’s not like I’m playing house.”

“You are talking too harshly. So what are you planning to do? Are you really going to collect all the insurance money? People should have a conscience. Are you planning to ruin the company that my father created?”

Is the conversation meaningful?

I never thought they would just come and attack me without warning.

“When did I even threaten to ask you to sign an insurance contract? You didn’t say anything when you signed the insurance contract, so what are you saying now? I don’t want to hear any more, so please leave. And if you want to negotiate, you need the right conditions and people. Please send it again.”

“Are you saying I’m not a proper person right now?”

“Ask any banker on Wall Street. If the current conditions are normal, they will tell you not to joke.”

Beep! Dimon rang the call bell.

The secretaries and security guards who had been waiting outside came into the bank president’s office and gathered around Jessica when Dimon made a gesture.

“Are you really like this? You can’t do this even if it’s just for old times’ sake.”

“I want you to ask the chairman if he kicked me out like that because of old ties. Just leave.”

Jessica goes out with a sigh.

Looking at her back, Dimon felt bitter.

If I had been working under Sandy Weil until now, I would have had to clean up after such a childish person.

Thanks to Vice Chairman Kim Min-jae, we were able to avoid such a situation.

And he stood in a position where he could look down on Sandy Whale, who had betrayed him.

* * *

The bomb of the subprime mortgage crisis began to explode in huge numbers everywhere.

More than one mortgage company went bankrupt every month, and large financial companies on Wall Street announced large losses.

“Mr. President, Morgan Stanley also announced large losses. The amount amounts to a whopping $3.7 billion.”

“How much is the insurance amount signed with Morgan Stanley?”

“SAVE investment company is worth $10 billion, and fintech bank is over $20 billion.”

“In total, it’s worth $30 billion.”

“Even if the U.S. government provides support, the scale of insolvency is such that it would be difficult to survive. It looks like they will probably try to survive by selling many assets and converting to a bank holding company.”

The problem did not end here.

In the case of Morgan Stanley, it could somehow survive if it received help from the government and improved its structure, but there were many companies that could not.

“Is AIZ the company with the most insurance contracts?”

“Yes, we and the fintech banks combined are more than $300 billion.”

AIZ, the largest insurance company in the United States.

Therefore, it also issued the largest amount of insurance for subprime mortgage bonds.

“You will hear from the U.S. government soon.”

“The moment AIZ collapses, it will be the same as the collapse of the U.S. insurance system. The too-too-big-to-fail principle may not apply to investment companies, but AIZ is different. From the U.S. government’s perspective, it will never allow other companies to go bankrupt. “I don’t think we will let AIZ go bankrupt.”

This was the reason why many insurance contracts were signed with AIZ.

Since it was a company that absolutely could not afford to fail, it was a bargaining chip no different from the Joker.

“The U.S. government must be contemplating which company to save and which to bankrupt.”

“However, we are in a situation where no decision can be made without the consent of us and the fintech bank. The best we can do to save the company is that it will collapse the moment we file an insurance claim.”

From the perspective of a Wall Street investment company, we were the grim reaper.

Places where we lend a hand will be able to survive, but places where we do not will be dragged into the hell of bankruptcy.

“Boss! The U.S. government has requested a meeting. I have received an earnest request to come to Washington with Dimon from the fintech bank.”

David bursts in through the door of the representative office.

With a flushed face, he conveyed the intentions of the U.S. government.

“Now we can conduct proper negotiations.”

“Is it finally time to eat the fruit from the tree you have been watering for years?”

“We just have to pick the fruits we want and put them in the basket.”

“There are so many delicious fruits. I want to eat them all, but it’s too bad I can’t.”

“We only have to eat the tastiest fruits. Shouldn’t other hyenas eat too?”

The U.S. government in its final days.

Since it was the time when influence was weakest, it was okay to make somewhat unreasonable demands.

Since he wanted to somehow prevent a bigger bomb from exploding during his term, he had no choice but to grant our demands.

Of course, if you make unreasonable demands, there will be repercussions.

However, since he had already established a good relationship with the next US president, there was no need to worry about repercussions.