The Magician’s Memorial - Chapter 267



Only Noblemtl

267. Hyenas of Wall Street (2)

Price negotiations that seem to never end.

However, price negotiations ended with Dimon’s decisive words.

“If SAVE Investment Company fails to acquire AIZ, the fintech bank will immediately claim the insurance money signed with AIZ.”

“Hmm, I understand. Then, the Ministry of Finance will help SAVE Investment Company acquire more than 70% of AIZ shares at a price of $4. And we will hold the current management accountable to a certain extent and take measures to prevent them from stealing assets as well as severance pay. I will also take it with you.”

This decision was made because AIZ must be saved.

However, the Federal Reserve was still opposed to SAVE Investment Company’s acquisition of AIZ.

“We will agree to the acquisition for $4. But isn’t the problem after the acquisition? Although SAVE Investment Company is a fairly famous company on Wall Street, we believe it is not good enough to lead AIZ, a huge insurance company.”

“But wouldn’t it be better than going bankrupt?”

“Will AIZ employees just stay still? It is clear that talented employees will move to other places, and if that happens, the company will not be able to run properly. I wonder what the employees will believe and continue to work for the company.”

The Fed’s opinion was not necessarily wrong.

Although it was a SAVE investment company that was producing high returns on Wall Street, it was by no means a large company in terms of company size.

It’s like a shrimp swallowing a whale.

In order to swallow the whale, the shrimp had to increase in size, and the method was already prepared.

“We plan to merge with Taewoo Securities and SAVE Investment Company. And we will merge again with AIZ to ensure that there are no problems with management.”

“And we’ll also provide some help from our fintech bank. We’ll cancel the insurance we have now and take a 15% stake.”

It was an absurd condition.

A 15% stake was only worth $15 billion.

However, the insured amount of AIZ insurance products held by fintech banks was at least $100 billion.

They say they’ll lose $7.5 million, so who can argue with that?

It was a condition that was possible because Dimon and I discussed it in advance.

It was also a condition that could satisfy both the Treasury and the Federal Reserve.

“Thank you for the great decision. Does anyone have any other opinions? The Ministry of Finance believes that if Taewoo Securities and SAVE Investment Company merge, they will be sufficiently capable of managing AIZ.”

“······.”

The Fed said nothing.

Of course, Taewoo Securities was a well-known securities company only in Korea, but it was by no means small when it was merged with SAVE Investment Company.

The only way to save AIZ.

Therefore, the Federal Reserve could not oppose it.

“But I would like to tell you one thing. SAVE Investment Company and FinTech Bank are trying to save AIZ, even at the cost of astronomical losses. I hope the U.S. government will also show minimal effort.”

“We will support not only the debt relief system, but also the injection of bailout funds and the extension of debt maturity. We will also help AIZ stably liquidate the insolvent hedge funds it holds.”

It wasn’t a bad condition.

It would not be possible to acquire a dinosaur called AIZ under better conditions than these.

Of course, AIZ survived before the regression, but it lost its former reputation.

However, by acquiring AIZ early, we were able to maintain our reputation by preventing future problems.

“Let’s move on to the next item. There are several financial companies that are currently at risk of bankruptcy. Bear Stearns, CITI Group, and Lehman Brothers are the most at risk. Your help is desperately needed in this matter as well.”

Bear Stearns, one of the top five investment firms in the United States.

CITI Group, the world’s largest financial group.

Even Lehman Brothers, which boasts history and tradition.

They were all dinosaur-sized companies.

However, that reputation was on the verge of disappearing, and the moment we filed an insurance claim, the companies were destined to go bankrupt.

“SAVE Investment Company has no intention of acquiring other companies anymore. We need to put all our capabilities into AIZ management, just as any company other than the financial sector would do.”

“What about fintech banks? If there is a company that wants to be acquired, we will actively support it at the U.S. government level.”

Dimon paused slightly.

But I already knew what he would decide.

“I am interested in the acquisition of CITI Group. If we receive debt relief and public funding, we can proceed with the merger and acquisition.”

“The Treasury Department agrees with Bank President Dimon. We understand that it also has a close relationship with Sandy Weill, the actual owner of the CITI Group.”

“There won’t be any employee exodus. If the person who was second in command to Sandy Weill becomes the new boss, I don’t think there will be many people who will object.”

There was no one here who did not know the relationship between Sandy Weil and Dimon.

Dimon could have been the second-in-command of CITI Group, but he left and founded a fintech bank.

Everyone recognized his abilities, and the employees of CITI Group, including the Ministry of Finance and the Federal Reserve, believed that they would welcome him.

“Of course, there are some conditions. The current poor management is a management problem, so we must be able to fire everyone and elect new management.”

“We can accept any conditions under those conditions. We will help you remove all executives, even if it means putting pressure on them at the U.S. government level.”

“Is it possible? They are not people who will come down easily.”

Pride in creating the world’s largest financial group.

And people in positions of power never try to give up power.

It was not easy to kick them out and for Dimon to rise to the top of the CITI group.

But the Deputy Minister of Finance smiled as if it were too easy.

“Wouldn’t it be better to give up your position than go to jail? Even if you go to court for what is known now, you will have to spend at least 10 years in jail. But if you come down now, you can spend your old age comfortably with enough money to live on for the rest of your life. “What choice would you make?”

“Anger and greed are never easily discouraged.”

“There is nothing that the National Tax Service cannot defeat. If you just confirm the acquisition of CITI Group, we will begin a tax investigation of CITI Group tomorrow. Wouldn’t your anger disappear after suffering for a few days?”

He was the Deputy Minister of Finance who said scary things with a smile.

The Federal Reserve also expressed no disagreement with this acquisition.

They perceived the fintech bank as a bank that came from the same roots as CITI Group, and seemed to regard it as nothing more than an internal management dispute.

“With the capital power of fintech banks and the size of CITI Group added, our reputation as the world’s largest financial group will continue.”

“We can only settle down stably with a lot of help from the Treasury and the Federal Reserve. We ask for your help.”

“I don’t know what will happen if the regime changes, but I will provide all convenience within this regime.”

The atmosphere in the conference room became much warmer.

Since he had already saved two companies, he seemed to think that he had achieved his own achievement.

“But aren’t you interested in acquiring another company? We will help you achieve a stable acquisition by providing as much public funds as possible.”

“Once again, SAVE Investment Company cannot afford to acquire more.”

“Can’t we move Taewoo Group instead of SAVE Investment Company?”

“Taewoo Group is focused on manufacturing and IT businesses rather than financial companies. If you suggest a company other than a financial company, we will consider it, but it is no longer difficult for a financial company.”

I ate plenty of delicious fruit.

Of course, there were still more fruits left to eat, but I planned to eat fruits available in industries other than the financial sector.

“Fintech banks have no intention of acquiring the company itself. However, they will consider acquiring a subsidiary or some of its assets.”

“I understand. I am very grateful to the two of you who helped me achieve good results from today’s meeting. I will convey today’s results straight to the White House. The President will be very satisfied.”

“But there is one more thing I really want to say. Although we will cancel the insurance contract with AIZ, we do not plan to cancel the insurance contract with other companies. Of course, we will not file an insurance claim right away, but the company went bankrupt even though we did not file an insurance claim. In this case, we plan to claim some of the assets instead of insurance money.”

It took a lot of money to acquire and stabilize AIZ.

There was no intention to pour money from SAVE Investment Company or Taewoong Group into AIZ.

Just by collecting money from other financial companies, it was possible to raise money for AIZ.

“If you want to file an insurance claim and take some of the assets with you after the company goes bankrupt, you should definitely do so. Thank you for not filing an insurance claim right now.”

“And in the case of companies that have invested public funds, we will negotiate the insurance amount. We will receive half of the insurance amount or assets equivalent to it.”

“This administration will never forget the two people who endured great losses. I don’t know who will take over the next administration, but I will also ensure a clear transition.”

There was no need for handover work.

Because I could speak directly to the person who will take over the next administration.

* * *

CITI Group, the world’s largest financial group.

Of course, he maintained good relationships not only with Wall Street, but also with the political world and the White House.

A variety of investigations were coming in all week long, putting such a good relationship to shame.

The first day was at the National Tax Service.

Unlike Korea, the U.S. Internal Revenue Service, which has enormous authority, robbed the CITI Group headquarters.

Next, the police and prosecutors began investigating allegations of embezzlement and breach of trust by management.

A week passed like that.

All executives came to the headquarters exhausted and looking like mummies.

In particular, Sandy Weil, the head of CITI Group, seemed to have no strength to shout unlike usual as he was under intense investigation.

“Chairman, the Treasury Department has come to visit you.”

“Is it the Ministry of Finance this time? It’s really too much to do. I wonder what they’re trying to find fault with this time.”

It was Sandy Whale who had half given up.

If there is hell, wouldn’t it be here?

The kingdom called CITI Group, which I devoted my entire life to building, has now become hell.

So, without taking any action, I got up and just stared at the window.

smart!

Deputy Minister of Finance and officials coming in with a knock.

It was Sandy Whale who narrowed his eyes at that sight.

However, a voice that was so familiar, but not for a long time, made him open his eyes.

“How are you? It took you so long. If you had let me sit in this chair the way it should, this wouldn’t have happened.”

“Daimon?”

Dimon sitting in the chairman’s chair.

He was smiling as he looked at Sandy Weil standing at the window.

It was the moment when the ousted second-in-command finally sat on the throne.

He also usurped the throne with powerful guards called Treasury officials.