To be honest, Lehman Brothers are really unlucky.

The crisis of Lehman Brothers was exposed last year, in September 2007.

On September 11, seven years ago, two planes hit the World Trade Center in New York, located at Lehman's headquarters in the World Trade Center. They suffered heavy losses but also survived.

On the same day seven years later, Lehman's stock price fell below 4 yuan, and once again came the moment of life and death.

At the end of 2007, Lehman's total assets were about US$700 billion, and the company's net value after deducting various liabilities was about US$20 billion, with a leverage ratio of 35 times. And this year, in the first half of 2008, Lehman's mortgage asset problems were gradually exposed, and the losses could reach 10 billion US dollars. The company lost its capital and turned into a net value of US$10 billion to support US$690 billion assets, and the leverage ratio suddenly rose to nearly 70 times.

At this time, Lehman was already in danger. If there was a slight disturbance, Lehman would fall down with a bang.

At this time, the Korean Industrial Bank, which is far away in East Asia, is willing to invest in Lehman. As soon as the news came out, Lehman's stock price immediately stabilized.

The main reason why KDB is willing to play Laleman Brothers at this time is that the boss of KDB was used to be the head of Leman Korea branch and has a lot of feelings for his old boss.

At that time, KDB was willing to sell $26 per share, but Lehman insisted on $28. Dick Ford, the head of Lehman Brothers, was indeed unwilling to "sell it at a low price". After all, Lehman is quite good at making money, with a profit of $4.2 billion in 2007. But this is the terrible liquidity - when the air is exhausted, what's the use of showing your eight-pack abs?

As a result, the delayed transaction finally went wrong. On September 7, 2008, the US government suddenly announced the takeover of the two houses, inserting $200 billion in preferred stock investment into their capital structure.

The next day, South Korean financial regulators expressed their opinions on the oriental tactful way: "KDB should treat the capital injection issue with extremely cautious attitude." Then KDB issued a statement to terminate the negotiations with Lehman. As a result, Lehman's stock price fell sharply. What's more fatal is that no one borrowed money from Lehman and liquidity would be cut off soon.

Looking around, Goldman Sachs, Citigroup is unable to protect itself. **** had just eaten Bear Stearns and would not be interested in Lehman, who was in a similar situation.

There are only two blind dates left, including commercial banks, the relatively simple and honest Bank of America, and Barclays Bank from Great Britain.

That weekend in mid-September 2008 was just an ordinary holiday for many people on this planet, but it was Lehman's life and death.

Before this, Bank of America and Merrill Lynch had been dating for a long time. Merrill Lynch looked at the mortgage assets on its books and knew in his heart that if Bank of America bought Lehman, then the next short-selling target of this financial vulture was himself. Bank of America was also unforgettable to me, sitting upright at the negotiating table and talking to Lehman, but always aimed at Merrill Lynch.

Can this matter be delayed? Without further ado, Merrill decisively approached his body and took the room card handed over by Bank of America at the bottom of the table.

Upon learning about the good things about Merrill Lynch and Bank of America, Treasury Elder Paulson was overjoyed and ordered both parties not to hesitate and to complete the merger and acquisition.

That weekend, Paulson, the old man recruited all the executives of Wall Street giants to the Federal Reserve building and did two things. First, he followed the LTCM crisis in 1998 and asked Wall Street to set up a rescue team to buy Lehman's problematic assets, and then the acquirer bought Lehman's remaining assets; second, he decided to acquire Lehman.

Does Goldman Sachs dare to demolish the old leader's station? It's definitely not. So, the rescue team went surprisingly smoothly. Seeing that Lehman was about to be saved, the merger case was stuck in a seemingly inconspicuous section: Barclays is a British bank. It turned out that according to British regulatory regulations, the merger case must be voted by the shareholders' meeting to count.

This is no different from US regulations, but the following one is very deadly: Before this, Barclays could not guarantee Lehman's transaction because it would constitute a "substantive merger and acquisition". It will take several days for shareholders to vote at the fastest, and Lehman still has to open business during this period. If investors continue to withdraw their investment, Lehman may not be able to survive the merger and acquisition case and will go bankrupt because the transaction cannot be settled.

Once, when Paulson, the old man persuaded Dick Ford, the latter replied, "I have been in charge of Lehman for longer than you are in charge of Goldman Sachs." The meaning is very clear, you are a fucking fuck!

So afterwards, some people said that it was because of Ford's usual arrogance that completely angered Old Paulson. Some people said that Old Paulson just wanted to kill the chicken to scare the monkey and teach the greedy Wall Street a lesson. In short, Old Paulson made a clear statement early on that the government should not pay for Lehman.

Humph, I just want to treat you as a terrifying chicken. What can you do to me? You sister dare to say that old paper, you are so proud of it if you don’t tidy up old paper!

However, Paulson still has to do his face. He asked the British regulators to exempt relevant regulations, but the British shook his head like a rattle: There are enough troubles in our own financial system, so we can open the back door to save an American investment bank? No way!

Now that Old Paulson has something to say, have you read it? I am not a stingy person. I have been asking the British for you, Lehman...

However, when Barclays in turn persuaded the US government to change its mind, Paulson's attitude was very firm at this time - our country's financial system cannot be easily destroyed... The implication is very clear, there is no way!

As a result, the fate of Lehman Brothers as a chicken cannot be changed, and the 158-year-old Lehman Brothers finally came to the end of their lives.

The bankruptcy of Lehman Brothers finally made the subprime mortgage crisis rise into a global financial crisis!

The cruelty in the financial market was fully demonstrated in this subprime mortgage crisis.

However, all this has nothing to do with the Dragon Fund. John Paulson was in front of him, and large investment banks such as Bear Stearn, Merrill Lynch, and Lehman Brothers were in back. Even if Old Paulson was very careful to do the work, he didn't have the energy to do these things.

Not to mention, by January next year, O'Haitan will come to power, and Old Paulson's journey to the Treasury Secretary will be completely over. He will also check for a P!

Yang Jing knew these things clearly, but he couldn't say them out now.

Fortunately, the Dragon Fund performed well enough in the subprime mortgage crisis and achieved sufficient profits while ensuring concealment. This is enough.

As for John Paulson, although he made a lot of money during the subprime mortgage crisis, he had $20 billion, and was called "Empty God" by later generations. However, the little money Paulson Fund earned really didn't take the Evil Dragon Fund seriously.

With just $20 billion, there is not even a fraction of the profits of the Dragon Fund...

"Okay, we won't discuss these." Yang Jing clapped his hands, raised his glass again and said, "The Olympics will be held in Yanjing, China next month. Guys, who are you interested in going to see that event with me?"

Henry and the other three also raised their glasses, and after they clinked with Yang Jing and took a sip. Henry smiled and said, "BOSS, are you trying to relax?"

Yang Jing shrugged without comment, "I have been busy for so many years, so I should give myself time to relax. People cannot always be as tight as a bowstring. Relaxing appropriately is good for the body. By the way, Mike has agreed to my invitation. He will fly straight to Yanjing next month, and we will meet. Guys, who would like to follow me to watch the Olympics?"

Henry looked at both sides, hesitated a little before then raised his hand and said, "Please count me as one. I think these little guys can already get out of the army, so I am also going to give myself a vacation."

Cesar grinned and said, "How could such a good thing fall behind me? I'll go too."

Yang Jing looked at David, and David shook his head and said, "BOSS, I think I'd better stare here. There needs to be someone here. And I have no interest in the Olympics, just go and watch it."
Chapter completed!