Rebirth of the Financial Crisis Sweeping the World

Chapter 195 195 Risk everything to do it! Borrow another 10 million shares!

At 7 o'clock in the evening, we had dinner.

Blackshirt Insurance Company headquarters, a dedicated trading room.

There are two operating teams here, one is from a black shirt hedge fund, and the other is from a black shirt insurance company.

Of course, both operating teams are the same and can be swapped and deployed at any time.

Blackshirt Hedge Fund is temporarily placed at the headquarters of Blackshirt Insurance Company. In the future, a dedicated management team will be responsible for Blackshirt Hedge Fund.

Tonight is the day when black shirt hedge funds short Fannie Mae. Everyone is more excited and excited.

Under the command of BOSS, they shorted Asia Financial Holdings, Galaxy Entertainment Group, Lehman Brothers, and tonight they shorted Fannie Mae, the largest mortgage company in the United States!

One of the world's top 500 companies, it dominates companies in more than half of the world.

Zhang Dexi asked excitedly: "BOSS, shall we sell off all 50 million shares tonight?"

This time, I borrowed 50 million shares of Fannie Mae stock for shorting. You must know that the stock price has risen a lot in recent days.

From the lowest price of US$4.3 per share, it has risen to US$7.5 per share today, an increase of 74.4%.

Apparently many institutions have been buying Fannie Mae at the bottom recently.

After all, after the stock price of such a large giant company plummets to a low level, once the company gets out of trouble in the future, the stock price will continue to rise and the income will be very high.

The problem is that the black shirt hedge funds are going short this time when the stock price is strong.

Although there has been a lot of negative news about Lehman Brothers these days, there is still a lot of good news about the two giant mortgage companies, Fannie Mae and Freddie Mac.

Such a big giant company will not go bankrupt.

Therefore, many retail investors and investment institutions like to hunt for low prices.

Now that he wants to short it, Zhang Dexi is still worried.

If Fannie Mae's stock price doubled this time, they would be liquidated.

Wang Guanxi looked at Zhang Dexi's worried look and said with a smile: "Of course, if we can finish the selling tonight, we will finish it tonight. If we can't finish it, we will finish it tomorrow night."

The trading volume of Fannie Mae's stock is very high now, with many people selling and many buying the bottom, but since August 21, the stock price has been rising steadily.

This means that fewer people were selling stocks during this period than buying stocks.

Fannie Mae is the largest mortgage company in the United States.

The market value has shrunk by 85%, and currently there is still US$8 billion in market value.

The lower the stock price, the more institutions like giant companies like bargain hunting. These two mortgage companies almost monopolize the U.S. real estate market.

Their total assets are very, very high, but their total liabilities are also very, very high.

Total assets are shrinking, but liabilities remain unchanged, so net assets are getting smaller and smaller, and so are market values.

Fannie Mae and Freddie Mac's stocks will be ridiculously low in the future.

But it is still a top 500 company.

Why?

Because the revenue is high!

But their stocks are almost worthless!

Why is it worthless?

Because their common stocks do not have any dividends or any income.

You'll know what happened after a while!

Thinking of this, Wang Guanxi was looking forward to it.

Wu Zhankun also said: "BOSS, I heard that India's private pension funds recently planned to increase their holdings in the share prices of Fannie Mae and Freddie Mac.

We borrowed these stocks from Indians, will they specifically target us? "

Although everyone abides by the agreement when lending stocks, after all, Blackshirt Insurance Company is essentially betting against the institutions that lend it stocks.

The Industrial Credit Investment Bank of India borrowed 40 million shares of Fannie Mae stock, which is the largest bettor of Blackshirt Insurance Company.

If the stock price plummets, the black-shirt insurance companies make money, then buy the stocks from the market and return them to the institutions that borrowed the stocks.

This Indian was treacherous. He had been tricked by an Indian once before and lost a lot of money.

He clearly remembered that Wing Lung Insurance was short on a stock and then borrowed Indian stocks to do so.

But the Indians are buying and defending the stock!

After a long period of back and forth, the Indians began to push up the stock, causing Wing Lung Insurance to liquidate its position and lose a lot of money.

Thinking of this, Feng Shaokun continued: "Boss, the Indians are not honest. We have to be careful. I was cheated by an Indian businessman last time."

Then he briefly talked about what happened to him and said angrily: "This Indian has no moral ethics!"

"Indians don't follow stock ethics?" When Wang Guanxi heard this, he was stunned and said: "If they want to do it, just come over and I will kill these scumbags who don't follow stock ethics."

These bastards actually play like this, borrowing your stocks to go short, and you keep buying them, blowing me out of my position. They are obviously trying to trick me!

Of course, you can't borrow too much stock. If the other party wants to start a war with you, that would be bad.

Of course, under normal circumstances, few people would do this.

However, the stock market is unpredictable, and few people dare to play this way with stocks with larger trading volume, because it will kill themselves.

You can short-sell the stocks of large companies, but you don't mind short-selling the stocks of small companies, because you can use funds to maintain the stock price, drag down the short-sellers, and wear out the short-sellers.

If Indian Sandeep Batra doesn't behave ethically, Black Shirt Insurance Company will kill him.

Thinking of this, Wang Guanxi said: "Let them come!"

At this time, CEO Huang Shaokai also said: "BOSS, I think they will definitely increase their holdings and then fight us."

During the day today, Sandeep Batra, Asia Pacific President of ICICI Bank, wanted to invest in Blackshirt Insurance Company and Blackshirt Investment Bank, but was rejected.

Then he asked BOSS Wang Guanxi to go see him in person, and then BOSS slapped him directly from the air.

When he went to reply to Sandeep Batra, the reply Sandeep Batra was really angry and said unpleasant words, which meant that you don't know how to praise me, which made me very angry.

This arrogant look also made Huang Shaokai very angry, but in order to borrow stocks and make money from short selling, he still endured it and did not have an attack.

Thinking of this, he continued: "Boss, that Sandeep Batra is a very arrogant person who must repay his flaws. I think he might really fight me hard.

Although his ICICI Bank will not take action personally because of the agreement, he may let other financial companies fight with me."

Wang Guanxi listened to Huang Shaokai's words and felt that they made sense, so he just came.

This time, Blackshirt Insurance Company shorted 50 million shares of Fannie Mae. How could it do this if there was no high-level taker?

Some institutions are buying at high prices, while Black Shirt Insurance Company is shorting at high prices. This way they hedge against each other, and the Black Shirt Insurance Company's opening price is also much higher.

Now Fannie Mae's stock price has risen to $7.50 per share, which looks very low.

Compared with last year's $75 per share, it is really, really low.

But this US$7.5 per share is the highest price in the future.

If Indians want to come and work, they are welcome.

Wang Guanxi said: "Let them come, call them and tell them that we will short 50 million shares tonight. We dislike it less and want to short more.

Ask them if they have any stocks left to lend us. Anyway, we only have US$387 million in funds.

If they are dissatisfied that our margin is not enough, doubling the interest rate is not a problem. "

Wang Guanxi’s Black Shirt Hedge Fund only has US$387 million in capital, and the other party can usually only borrow stocks of similar value, but not more.

Of course, Wang Guanxi would be very happy to borrow more from Indians.

It's only around 7 p.m., so it should still be late. After all, the U.S. stock market doesn't open until 9:30.

"Yes, BOSS." Huang Shaokai immediately called Sandeep Batra, Asia Pacific President of Industrial Credit Investment Bank of India.

The call was quickly connected, and Huang Shaokai couldn't wait to say: "Mr. Batra, we still need Fannie Mae stocks. Can you borrow them from us?"

On the phone, Sandeep Batra asked: "50 million shares are not enough?"

Huang Shaokai nodded and said: "Well, it's not enough. We plan to sell them all tonight. 50 million shares are really not enough, although we only have US$387 million in funds now.

But we hope to borrow more stocks, and doubling the interest rate is not a problem.”

Sandeep Batra shook his head and said: "You must come up with more funds. I still have 10 million shares of Fannie Mae stock here, which is worth US$75 million based on the current stock price.

You have to put up $75 million in assets as guarantee."

Huang Shaokai said immediately: "We have no assets as collateral now. Can you lend us the remaining 10 million shares at twice the interest?"

Sandeep Batra shook his head and said: "No, you have to use assets as security. I think Black Shirt Insurance Company and Black Shirt Investment Bank are good. You can use them as collateral for guarantee!"

The Industrial Credit Investment Bank of India currently holds 10 million shares of Fannie Mae. If Blackshirt Insurance Company wants to borrow, it must pledge its assets.

It would be best if Blackshirt Insurance Company and Blackshirt Investment Bank mortgage it together.

Then they liquidated the positions of Blackshirt Insurance Company, Blackshirt Insurance Company and Blackshirt Investment Bank.

"Let's think about it." After Huang Shaokai ended the call, he came to Wang Guanxi and said, "BOSS, they want us to mortgage Blackshirt Insurance Company and Blackshirt Investment Bank."

Although Blackshirt Insurance Company has a lot of cash flow and Blackshirt Investment Bank has a lot of client assets, the current net assets of the two companies are basically 0.

Wang Guanxi thought for a while and said: "Okay, mortgage it to them and let him borrow the remaining 10 million shares of Fannie Mae."

"Okay, BOSS" Huang Shaokai quickly called Sandeep Batra.

After the call was connected, Sandeep Batra asked on the phone: "How are you thinking about it?"

The call came so quickly, which made Sandeep Batra feel a little disappointed. Maybe the boss behind Black Shirt Insurance Company must be afraid and would not take out the mortgage.

At this time, Huang Shaokai quickly said: "Mr. Batra, we have thought about it carefully. Blackshirt Insurance Company and Blackshirt Investment Bank will mortgage it to you."

When Sandeep Batra heard this, he was immediately overjoyed and said calmly: "Well, I will lend it to you. I hope you will pay the interest on time. We will cooperate happily, my dear friend!"

In fact, he wanted to blow up Black Shirt Insurance Company right away. Now that the other party actually agreed to mortgage it, this was a great surprise to him.

Blackshirt Investment Bank and Blackshirt Insurance Company were obtained effortlessly.

These Chinese people are stupid and greedy in front of him. They are simply looking for death and liquidation!

If you are looking for death, you can't blame them anymore. This time, let India's private pension funds let you liquidate your positions.

Although he wanted to kill Black Shirt Insurance right away, he still had to pretend to be friendly.

Huang Shaokai continued: "Then let's sign the agreement now."

"Okay, I'll send someone over to sign the agreement with you." Sandeep Batra was very happy after ending the phone call, and then asked his lawyers to rush to Blackshirt Insurance Company with the equity agreement.

Then he couldn't help but said: "Our prey has fallen into the trap, haha"

Sandeep Batra took a sip from his teacup and smiled proudly.

Ratan Tata, the heir to the Tata Group, couldn't help but said: "These Chinese people are so stupid. They are finished this time."

Nehru, the vice president of India's private pension fund, also said excitedly: "These people are greedy, stupid, and ignorant. Let's see how we defeat them this time. Blackshirt insurance companies and blackshirt investment banks. Let's take shares together. "

"OK, no problem, I think so too," Sandeep Batra said very excitedly.

After thinking for a while, he continued: "Perhaps we can wait a little longer and let Heishi Investment Bank apply for the brokerage license of Huaxia Lu City, as well as the insurance license."

"At that time we can use these two companies to cut leeks."

"The longer it takes, the more interest they pay."

Nehru said negatively: "It's okay, just blow them up. In fact, Blackshirt Investment Bank and Blackshirt Insurance Company can start business in mainland China even if they don't have a license. This is tacitly agreed.

Although many insurance companies and securities companies in Hong Kong do not have licenses, they have offices in mainland China and can operate business normally."

Ratan Tata also said: "Yes, we will blow up their positions directly, and then take over Blackshirt Insurance Company and Blackshirt Investment Bank."

"Honestly, I don't even want them to live for three days."

"I want to kill them tonight"

"Maybe tomorrow night"

"Or next Monday"

··

Time passed quickly, and Sandeep Batra's lawyers returned, and 10 million shares of Fannie Mae stock were loaned out again.

Blackshirt Insurance Company and Blackshirt Investment Bank also came with mortgages.

He was very excited, happy and excited.

"These Chinese people are so stupid!"

"These two companies are ours," Ratan Tata said with a smile.

"Yeah, I'm going to prepare now. The U.S. stock market is about to open." After saying that, Nehru stood up and came to a computer to open the Indian private pension account.

Team operations are similar to self-operations, except that you don’t need to be so tired when doing team operations.

Blackshirt Insurance Company at the moment.

Wang Guanxi and others were ready.

It is now 9:15, and there are still 15 minutes left for the U.S. stock market to open.

The atmosphere was extremely tense, because this time everything was put on the line, and the Indians would definitely come to stop the black shirt insurance company.

Lose, screwed.

Win, win big, win big.

The horses were breathing heavily!