Rebirth of the Financial Crisis Sweeping the World

Chapter 203 203 A great victory! The Indian giant admits to kneeling down! Keep staking and keep working!

Then Wang Guanxi asked: "Have lawyers been sent to the Industrial Credit Investment Bank of India?"

Previously, in order to borrow 10 million more Fannie Mae shares from the Industrial Credit Investment Bank of India for shorting.

Therefore, Wang Guanxi mortgaged Blackshirt Insurance Company and Blackshirt Investment Bank to Industrial Credit Investment Bank of India.

Now is the time to get the mortgage contracts from Blackshirt Insurance Company and Blackshirt Investment Bank back.

Anyway, after the position is closed tonight, all the stocks will be returned to the Industrial Credit Investment Bank of India, and the contract for the mortgaged equity will naturally be terminated.

Although the black-shirted hedge funds have not closed their positions yet, they can ask their lawyers to prepare first.

CEO Huang Shaokai said quickly: "BOSS, Lawyer Yin Feihong, the executive director of Blackshirt Legal Company, has passed by."

Currently, Heishi Law Firm has many big lawyers who also serve as directors, and there are also many ordinary lawyers below. Now the scale is getting bigger and bigger.

"Well, very good." Wang Guanxi couldn't help but sneered as he thought of Sandeep Batra, Asia Pacific President of Industrial Credit Investment Bank of India, trying to take away Blackshirt Insurance Company and Blackshirt Investment Bank.

Are you worthy?

If it weren't for the purpose of borrowing 10 million more Fannie Mae shares to short-sell and make more money, Wang Guanxi wouldn't bother to do that.

Time is passing by minute by second.

Fannie Mae and Freddie Mac, two of the world's top 500 giants, are the largest mortgage giants in the United States. After the US government announced its takeover, the stock market continued to be sold off at the opening. Its stock price dropped from 1.80 US dollars per share. Stopped falling.

Just 5 minutes later, the stock price fell to $1.10 per share!

It's simply too horrible to look at!

Many bulls have collapsed in their hearts, the stock price has dropped to this point, and many investment institutions holding Fannie Mae stocks have stopped closing their positions.

If the selling continues and the stock price falls below 1.10, it will become worthless. They also believe that the short sellers will close their positions.

Among them, Mosaic Group has temporarily stopped selling. It is not that they are not selling, but they want to slow down and let short sellers close their positions. If the stock price rises slightly, they will close their positions again.

At this moment, Bill Miller, president of Mosaic Group, looked at Fannie Mae's stock price chart and sighed.

This time Legg Mason suffered heavy losses on Fannie Mae. Fortunately, he has not used funds to continue to increase his holdings of Fannie Mae shares in recent days.

At this time a piece of news appeared.

Wall Street Journal: [Legg Mason Group’s heavy position in Fannie Mae suffered a huge loss of more than billions of dollars]

This is bad,

Legg Mason Group's stock price was immediately sold by investors and began to fall from $47 per share.

This time the U.S. government took over the two giant mortgage companies, Fannie Mae and Freddie Mac, the global stock market was rising, and the stock prices of many listed companies were rising. Only the stock price of Mosaic Group began to turn around and fall. It really put Bill M. Le was so angry.

"FUCK!"

He punched the wall hard.

No one likes a company's stock price to fall. Under such a good form of rescue, Legg Mason Group's stock price fell. The stock price is really not optimistic.

He knew that the person who broke this news must want to mess with his company. He secretly guessed that there were financial institutions shorting Fannie Mae to short him, the major shareholder of Fannie Mae!

“Is there really an organization targeting Legg Mason Group?”

He considered financial institutions that might be shorting Legg Mason one by one.

At this time, the assistant hurriedly came over and said: "Mr. Miller, it should be a trader affiliated with Goldman Sachs who is shorting our company's stock."

"It is rumored that they have shorted most of the stocks related to the real estate industry. Fannie Mae and Freddie Mac have also been shorted. We are the major shareholder of Fannie Mae, and individual traders under them may also have shorted our company's stock."

The shares of Fannie Mae that Legg Mason Group bought this time were all purchased with its own funds, in order to allow Legg Mason Group to make huge profits in the future after becoming Fannie Mae's major shareholder.

Unexpectedly, the U.S. government took over Fannie Mae in this way and took away all profits through senior preferred stocks, causing heavy losses to ordinary shareholders and causing Legg Mason Group to suffer a big loss.

Although Legg Mason manages a lot of assets, those are client assets, and this time their own accumulated proprietary assets suffered heavy losses from Fannie Mae.

Fortunately, financial stocks and bank stocks are all soaring today. Among Legg Mason Group's private assets are Bank of America Corporation and Citibank's stocks, which have made a lot of profits on paper, slightly offsetting the losses on Fannie Mae stocks.

But one institution happened to be eyeing Legg Mason, possibly a trader at Goldman Sachs.

It is estimated that short selling began secretly long ago.

“Damn Goldman Sachs!”

Bill Miller's chest rose slightly. Being targeted by Goldman Sachs traders was really not a good thing.

In particular, he holds a large amount of Legg Mason Group shares. If Legg Mason Group's share price falls, his net worth will shrink.

The most important thing is that he mortgaged some of his shares in Legg Mason to Bank of America Corporation, and then invested in a large and very profitable project.

If Legg Mason Group's stock price is shorted by Goldman Sachs, causing the stock price to plummet, the equity he pledged to Bank of America Corporation will be in danger.

To put it simply, the major shareholder of a listed company mortgaged 100 million shares to the bank at a price of 10 U.S. dollars. The stock assets worth 1 billion U.S. dollars obtained a loan of 600 million U.S. dollars. The mortgage price was just 10 U.S. dollars per share. share.

If the stock price drops to $6 per share, or $5 per share, then the bank will come to call for money.

Because when the stock price fell to $6 per share, these 100 million shares were only worth $600 million.

When it fell to US$5 per share, it was only worth US$500 million. After the bank forced liquidation of the stock, the losses caused would be made up by the major shareholders.

This Goldman Sachs bank simply made him hate it.

··

At this moment, at the Asia-Pacific headquarters of ICICI Bank, Sandeep Batra and Nehru looked pale, and neither of them had closed their positions.

Because it can't be settled at all, the market is full of selling orders, everyone is selling, and their hearts are broken and numb.

Industrial Credit Investment Bank of India holds 50 million shares of Fannie Mae, which it bought a long time ago at a cost price of around US$10.00 per share.

At that time, US$500 million was spent, and now the stock price has dropped to US$1.1 per share. The floating losses on the books continue to increase, and now the 50 million shares are only worth US$55 million, a loss of US$445 million. Sandeep... Batra was furious.

"Oh, how can I close my position?"

"The stock price has dropped to US$1.1 per share, what the hell!"

These 50 million shares were lent to the Black Shirt Insurance Company for shorting. Only after the Black Shirt Insurance Company closed its position and returned the 50 million shares to the Industrial Credit Investment Bank of India could Sandeep Batra close the position and sell the stocks. .

But now Sandeep Batra doesn't even want to close his position, his heart is numb, let it be.

And Nehru was even more broken inside, helpless and helpless. Indian private pension funds held 200 million shares, how could they close their positions?

Sell ​​it all?

Then the stock price will drop to US$0.1 per share, right?

This will cause even greater losses!

What’s the point of such a sell-off?

Might as well keep taking it.

Now India's private pension funds have suffered huge losses on Fannie Mae stocks, with a floating loss of US$6.1 per share. For 200 million shares, that is a floating loss of US$1.22 billion!

This is a huge loss. It turns out that his immediate boss, the chairman of India Pension, is very optimistic about him and plans to elect him to become the chairman in the future.

But this performance is really bad. Where is this loss of US$1.22 billion?

His position may be unstable.

He also has competitors in private pension funds in India.

"I was really cheated this time with Fannie Mae." Nehru was furious: "The people on Wall Street also lied to me. They told me it was fine before, but it happened that such a big thing happened!"

Nehru was filled with hatred when he thought of this.

"This time the black shirt insurance company is out of luck."

"Oh no, these Chinese people are so lucky"

This time they blocked the Chinese short sellers of Fannie Mae, wanted to blow them up, and took away the Black Shirt Insurance Company and the Black Shirt Investment Bank. As a result, they suffered heavy losses.

There is really no way to describe how I feel at this moment!

Ratan Tata comforted him: "You two don't need to be discouraged. This time the US government took over Fannie Mae and Freddie Mac, which caused the global stock market to rise sharply. We also made a lot of profits in other places."

"And didn't Blackshirt Insurance Company borrow 1 million shares of American International Group stock?"

"These Chinese people will definitely short AIG. When we stop them again, we will definitely be able to blow up their AIG stock."

This time, the Tata consortium did not hold Fannie Mae and Freddie Mac stocks, so there was no loss. The surge in global stock markets increased their stock assets.

Sandeep Batra gritted his teeth and said: "Yes, Black Shirt Insurance Company also asked us that Industrial Credit Investment Bank of India borrowed 1 million shares of American International Group. They will definitely short-sell American International Group. When the time comes, we will Kill them!"

Nehru also said: "Our Indian private pension fund also holds 1 million shares of American International Group. If they want to short, I can lend it to them, as long as they have the courage!"

Ratan Tata said calmly: "Don't worry, the global stock market is rising. These Chinese people definitely don't have the guts to bet against AIG. They just got lucky with Fannie Mae.

If the U.S. government hadn’t taken over Fannie Mae and Freddie Mac in the form of senior preferred shares, we would have definitely defeated these Chinese people.”

Ratan Tata is absolutely right. If the U.S. government had not taken over Fannie Mae and Freddie Mac in the form of senior preferred stocks, the stock prices would never have plummeted!

At this time, Nehru's phone rang. It was Singhal, the chairman of India's private pension fund, asking him to find an opportunity to clear Fannie Mae's stock.

This time India’s private pension claims compensation,

Nehru said quickly: "Yes, Chairman, I understand."

After ending the phone call, Nehru looked at Fannie Mae's stock price chart with a face full of reluctance. In the next few days, he would look for opportunities to clear out Fannie Mae's stocks, because the chairman has given an order!

This Fannie Mae stock is not worth investing in in the next 20 years, because Fannie Mae has been taken over by the U.S. government for at least 20 years. Ordinary shareholders like them will not receive a single dividend, a penny of dividends, and no management rights.

Such stocks have no value.

So clearance.

This time India’s pension fund is on its knees!

At this time, a female assistant came in and said: "President, the lawyer from Black Shirt Insurance Company is here and said that he will return the stocks to us immediately and contact us about the mortgage agreement."

Sandeep Batra said nonchalantly: "Isn't this why we haven't returned the stocks yet?"

"Let him wait outside and turn on the air conditioner to the coldest setting."

"That's a good idea!"

Now it was Sandeep Batra and Nehru who were filled with rage that could not be released.

This bad breath will naturally come out.

As a result, Yin Feihong, a barrister from Blackshirt Law Firm, was assigned to the reception room, and the Indians turned on the air conditioner to the coldest setting.

But Yin Feihong was so cold that he started sneezing.

"Son of a bitch!"

At the headquarters of Blackshirt Insurance Company, Wang Guanxi saw a large number of buying orders coming in, and the stock price quickly rushed to US$1.30 per share. Obviously, there were many short positions being liquidated.

After all, the stock price is so low. Many short sellers have made profits and want to cash in their profits, so they will close their positions.

Closing a short position is equivalent to buying. The black shirt hedge fund is also short. Wang Guanxi also plans to close the position. He doesn't want to wait any longer. If the stock price continues to fall, he won't make much money.

To put it simply, the Blackshirt hedge fund opened a position at $7.50 per share, shorted 60 million shares, and the stock price fell to 1.30 and 1.00.

But the earnings per share are running low, and Wang Guanxi can no longer waste time on Fannie Mae stocks.

After closing the position, he planned to short American International Group (AIG)

So Wang Guanxi said: "Start closing positions!"

"Yes, BOSS"

Then everyone began to close their positions.

1 million shares!

1 million shares!

1 million shares!

···

Soon the stock price rushed to 1.70, and 30 million shares were sold off.

Wang Guanxi shouted: "Stop first!"

"Yes, BOSS" everyone stopped.

Many stock prices fell sharply again because the bulls began to sell when they saw a slight increase in stock prices.

Soon the stock price fell to 1.30 again, and Wang Guanxi shouted: "Continue to close the position!"

"Yes, BOSS" Everyone closed their positions again, raising the stock price to around 1.70!

The remaining short orders of 30 million shares were also closed.

This time, the opening position is 7.50, and the average closing position is 1.50!

Earning 6 US dollars per share, 60 million shares, that is 360 million US dollars, which means a profit of 2.79 billion Hong Kong dollars.

This time it can be said that I made a lot of money.

This time, the black-shirted hedge fund's short bet on Fannie Mae was blocked by the Indians. After a big fight, it can be said to be a big victory!

Wang Guanxi thought about it. The Indians had been protecting the market and boosting Fannie Mae's stock. Today, Fannie Mae's stock price was so miserable that there must be a loss of more than 1 billion US dollars. There is no doubt about this.

Thinking of this, Wang Guanxi felt very proud.

These scoundrels tried to take away the Blackshirt Insurance Company and the Blackshirt Investment Bank when they tried to stop them. They deserved it.