Rebirth of the Financial Crisis Sweeping the World

Chapter 274 274 Close the position! Hong Kong’s financial sector is in turmoil!

At this time, Wang Guanxi said: "When the U.S. stock market opens tonight, the stock price of Washington Mutual Bank will definitely fall to waste paper. As long as it falls below $0.2, we will start clearing our positions!"

The bankruptcy of Washington Mutual Bank caused a greater financial panic effect. Today, Asia-Pacific stock markets generally fell, and the stock markets in Luzhou and Shenzhen fell by 1%.

Hong Kong's Hang Seng Index fell 1.4%.

Bay Island stock market fell 2.16%.

Japan's benzene stock market fell 0.94%.

South Korea's stock market fell 1.68%.

The Australian share market fell 0.53%.

And when the U.S. stock market opens tonight, needless to say, it will definitely fall!

However, tonight the White House will continue to negotiate a $700 billion financial rescue plan. If the $700 billion rescue plan is passed, the stock market will soar!

However, this uncertainty will cause intensification of financial market shocks, which Wang Guanxi is looking forward to.

Anyway, no matter how the stock market fluctuates, he is a firm short seller, that is, short, not long!

"Yes, BOSS" Everyone looked expectantly.

Blackshirt Insurance Company is now shorting American International Group, totaling 5 million shares, with a position of $388 per share.

Fund No. 2 is shorting Citibank Group, also holding 5 million shares, with a position of $213 per share.

Blackshirt Investment Bank is shorting Washington Mutual Bank, 120 million shares, and the position is at $3.00 per share. Washington Mutual Bank went bankrupt. The financial turmoil is intensifying tonight, because the $700 billion rescue plan is good for the stock market, and The bankruptcy of Washington Mutual Bank is bad for the stock market. This bad news is intertwined with good news. No one knows how the stock market will go tonight.

But one thing that's certain is that Washington Mutual's stock price is going to be worthless.

At this time, Huang Shaokai asked: "BOSS, do we want to clear out the stocks of American International Group tonight?"

Now that the stock price of American International Group (AIG) has fallen very low, it seems that the position can be closed.

Taking advantage of the huge bad news brought about by Washington Mutual Bank, the stock price of AIG Group will definitely fall sharply in the evening, which is a good opportunity to close the position!

Zhang Dexi also said: "This Indian hasn't closed his position yet, Mr. Huang, actually we don't need to be in a hurry."

Blackshirt Insurance Company shorted 5 million shares of AIG Group, of which 2 million shares were borrowed from the Industrial Trust Investment Bank of India and Indian private pension funds. In addition, in order to block Blackshirt Insurance Company, the Tata Group bought 650 shares. million shares of AIG Group stock.

It is the Indians who should be anxious now.

Wu Zhankun also said: "Yes, this Indian must be dying of anxiety, right?"

They have fought many battles with the Indians in the stock market, starting with Fannie Mae, American International Group, Washington Mutual, and then Citibank, and there may be more in the future because they will short more bank stocks, such as Wells Fargo and Bank of America Corporation. , HSBC, Hang Seng Bank, as long as Indians dare to come, then they will continue to do so.

Now that Washington Mutual Bank has gone bankrupt, the stock prices of American International Group and Citibank will plummet.

The Indians will suffer more losses. The Indians planned to negotiate last time, but the settlement price offered by Black Shirt Insurance Company was US$50 per share. As a result, the Indians did not agree and the matter was settled.

American International Group's stock price has fallen below $40 per share, and the Indians will be anxious again tonight.

Wang Juehao said with a smile: "I don't know if the Indians will call us tonight and beg us to close our positions and return the stocks to them."

Last time, Sandeep Batra from Industrial Trust Investment Bank of India called to negotiate and wanted to settle at a price of US$100 per share. He also claimed that the stock price of AIG Group would not continue to fall. It is funny to think about it. Now AIG Group The stock price has dropped to US$39.00 per share, and the Indian's face was swollen.

He guessed that the Indians might come again tonight asking for negotiations.

Bai Weiqiang also smiled and said: "This time the Indians were rejected by us. I wonder if they have the nerve to call us to negotiate this time?"

Wu Zhanhai also smiled and said: "These Indians want to save face and suffer. I don't think they will call."

Lu Jianyan also said: "Maybe the Indians can't resist anymore and may negotiate with us."

Li Guangyu also asked: "If the Indians negotiate with us this time, should we accept it?"

Guan Zhenyi: "If they really call to negotiate, I think it is acceptable."

Wu Hongsheng: "The price is settled at US$35 per share. Let's see if they can accept it?"

Lin Jiyang suggested: "I think the settlement price of US$30 per share is suitable after all."

At this time, Wang Guanxi said with a smile: "Let's wait and see how long this Indian can resist!"

"Yes, BOSS"

Time passes slowly.

Panic over the bankruptcy of Washington Mutual Bank is still brewing, and European stock markets are also falling across the board.

And all kinds of news are coming.

8pm.

[White House Spokesperson: The $700 billion financial rescue plan will be passed]

The White House Chief of Staff: Acknowledging that members of Congress have the right to express their concerns and disagreements, he declared that members of Congress must "adapt to circumstances" and approve the rescue plan aimed at avoiding a recession.

President Bush said: There are differences on every aspect of this rescue plan, but there is no disagreement on the issue that something major must be done. We must pass a plan of salvation.

On Wall Street, the nervousness among financial institutions was clear, especially after Washington Mutual became the largest bank failure in U.S. history.

You must know that in the 2008 Fortune Global 500 ranking, Washington Mutual Bank ranked 318th, with operating income of US$25.531 billion. If you say it is bankrupt, it is bankrupt.

Now the market's concerns about the deepening economic crisis have prompted investors to buy relatively safe government bonds.

The U.S. five-year Treasury bond and the U.S. 10-year Treasury bond will be hot assets tonight.

It's morning in the United States. Although the U.S. stock market has not opened, many people have woken up and begun to pay attention to financial news.

Seeing the bankrupt Washington Mutual Bank, countless American investors were furious, regretful, and at a loss!

"Oh, this Washington Mutual bank is bankrupt when it says it's bankrupt, you bastard!"

"Grass"

"What the hell does this stupid CEO do for a living!"

"Didn't you agree to negotiate with Citibank and Morgan Bank?"

"Fuck, damn, my money is gone"

"Ah!!! I heard before that Washington Mutual Bank would be acquired at a premium, so I mortgaged my house to buy Washington Mutual Bank at a low price. Now it's over!"

···

Not just retail investors, but also Washington Mutual's major shareholders.

Especially its independent shareholder Stephen Frank, who will become chairman of the board of directors of Washington Mutual Bank on July 1 this year.

Less than three months after he took the position of chairman, Washington Mutual Bank collapsed. He was so angry that he couldn't sell it. No one wanted it. Citibank and Morgan Bank both disliked the high price.

And the stocks he holds will become useless paper after the U.S. stock market opens!

10% of the shares!

"Fuck!!" He threw the cup to the ground angrily.

The CEO and executive director Kelly Killinger comforted him: "Frank, please open up!"

He also held a small stake but has sold most of it.

Tiffin Frank sighed in despair: "My God has abandoned me."

At this time, the phone rang, and it was Terry Alonso, CEO of TPG Investment Company (TPG).

Founded in 1992, TPG is a leading global alternative asset management company with more than US$108 billion in assets under management. Its investments cover a variety of asset classes, including private equity, growth funds, real estate, credit and public funds.

According to Private Equity International (PEI) magazine, TPG continuously ranked among the top ten largest private equity firms in the world from 2005 to 2007.

Today, TPG has investment and operations teams in 16 cities around the world, with offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul and Singapore etc.

It owns multiple investment platforms, such as TPG Capital, TPG Asia Capital, TPG Growth Fund, TSSP Special Opportunities Fund, TPG Impact Investment Fund, etc., and has invested in more than 500 companies around the world.

It is one of the first global private equity investment companies to enter the Chinese market, covering financial services, healthcare, consumer retail and technology, media and technology, media, telecommunications (TMT) and other industries.

Such a large private equity fund suffered heavy losses on Washington Mutual Bank this time, because in April, TPG raised US$7 billion in funding for Washington Mutual Bank. This huge investment almost lost all money. It can be seen that How angry is TPG CEO Terry Alonso!

He had just been on a business trip in Asia. He had been busy for two days without rest. When he woke up, he saw the bad news about Washington Mutual Bank!

Terry Alonso cursed into the phone: "You fool, idiot, didn't you say before that Citibank and Morgan Bank would definitely acquire Washington Mutual Bank at a premium?"

Tiffin Frank did not withdraw and was scolded. This was not the first time that he had been scolded.

The two are still friends, and it was Tiffin Frank who originally suggested Terry Alonso raise money from Washington Mutual Bank.

"Terry Alonso, please clear your positions when the stock market opens. Sell as much as you can."

This time Washington Mutual's stock price probably fell to shit at the opening. It would be great to get tens of millions of dollars. The 7 billion dollars was lost. He was very ashamed in his heart, but there was nothing he could do. At this point, there was nothing he could do.

The current share price of Washington Mutual Bank is US$1.70 per share. After the market opens, it may directly become US$0.17 per share, right?

Terry Alonso cursed on the phone: "You fool, can I still get back 70 million US dollars out of my 7 billion US dollars? Tell me?"

Tiffin Frank nodded: "It should be possible"

Washington Mutual Bank has gone bankrupt. It still has so many debts and is insolvent. If it goes into bankruptcy and liquidation, the debts must be repaid first. Basically, the shareholders will lose everything.

So after the stock market opens, sell as much as you can, especially since there are many shorts against Washington Mutual Bank who will close their positions!

For example, Goldman Sachs and Hong Kong’s Black Shirt Investment Bank.

Thinking of this, he said: "Terry Alonso, you can contact Goldman Sachs, Hong Kong's black-shirt investment bank, Standard Chartered Bank, and suggest them to close their positions."

The big short sellers now exposed include Goldman Sachs, Hong Kong’s black-shirt investment bank, and Standard Chartered Bank.

"Okay, then I'll arrange for someone to ask." Terry Alonso ended the phone call, and then asked his assistant to contact Blackshirt Investment Bank, Standard Chartered Bank, and he personally contacted Goldman Sachs!

Soon the call came to Wu Zhanhai, the executive director of Blackshirt Investment Bank.

Wu Zhanhai said to Wang Guanxi: "BOSS, the people from TPG want to negotiate the price with us. They know that we have shorted 120 million shares, and they hope that we can trade with them directly at US$0.3 per share."

Because Blackshirt Investment Bank needs to close its position and close its short position of 120 million shares, it needs to buy 120 million shares of Washington Mutual Bank in the market, while TPG needs to clear all shares of Washington Mutual Bank. , so Blackshirt Investment Bank can directly buy 120 million shares of Washington Mutual Bank from TPG Investment Company, and then return the 1.2 shares of Washington Mutual Bank to Jiehao Financial Group.

However, it was impossible to trade at a price of 0.3 US dollars per share. Wang Guanxi said: "Trading at a price of 0.1 US dollars!"

"Yes, BOSS, I will reply to them immediately." Then Wu Zhanhai replied to Depac Investment Company.

But the other party didn't agree, so I had to give up!

So TPG had no choice but to give 120 million shares of Washington Mutual Bank to Standard Chartered Bank at a price of US$0.3 per share.

The total value is 36 million U.S. dollars, and TPG Investment Company is also satisfied, because the share price of Washington Mutual Bank is destined to fall below 0.1 U.S. dollars per share, or even become 0!

On the Goldman Sachs side, they also reached an agreement to trade at a price of $0.22.

In this regard, TPG also hated Blackshirt Investment Bank!

The US stock market will open soon!

Washington Mutual suffered a stampede sell-off!

The stock price plummeted!

From $1.7 per share, it fell to $0.17 per share in just 5 minutes!

The stock price fell by 90%!

"Damn it, it fell so hard!"

"Wa hahaha!"

“So awesome”

"Fuck, this is absolutely terrifying."

"What a massacre tonight!"

"Industrial Trust and Investment Bank of India and the financial group have lost all their money!"

There is a long negative line in the 5-minute trend chart, like a waterfall falling straight from the sky, with huge energy that can crush everything!

No, it crushed those bulls.

The bulls in the market collapsed so badly, it was like a big fire broke out in a 17th-floor house and they had to jump off the building.

At the Industrial Trust Investment Bank of India, Sandeep Batra looked at the computer screen with a pale face and sweating all over his body. He could not close his position at all!

"Paralyzed, idiot!"

"It's a big loss this time, alas!"

"Damn black shirt investment bank, go to hell"

How did Hong Tianwen, chairman of Jiehao Financial Group, learn that Black Shirt Investment Bank was going to short Washington Mutual? At that time, Washington Mutual’s stock price fell to a historic level. At that time, Sandeep Batra decisively asked Industrial Trust Investment Bank of India to stop the black shirt. Shirt Investment Bank has suffered heavy losses and has basically lost all its money.

Previously, he bought 1.2 shares of Washington Mutual Bank at 3.00 and spent US$360 million. Now he plans to have nothing left.

Nehru of India's Private Pension Fund comforted him: "Sandeep Batra, look at it, you will lose a lot this time, but you can still make it back elsewhere."

"If you look at Citibank's stock, it only fell slightly tonight. Although it fell to $180.00 per share, it fell below this key position."

Compared with the stocks of other banks, Citibank's stock price tonight is relatively strong!

Sandeep Batra took a look at Citibank's stock price and felt a little relieved, as long as Citibank's stock price didn't plummet.

At present, the bulls in the market are clinging to the 180.00 position, and Industrial Trust Investment Bank of India holds 6 million shares of Citibank. He believes that he can make a lot of money in Citibank.

"I hope I can make back the money I lost on Washington Mutual this time on Citibank!"

Nehru said enthusiastically: "It will definitely happen. Don't worry, Citibank's stock price is definitely at the bottom. There is huge room for growth in the future."

Sandeep Batra nodded and said: "This time, let the Black Shirt Investment Bank laugh for a while. Next time, I will definitely kill it, paralyzed!"

At this moment, he was extremely unwilling, very depressed, and full of endless anger. This depression and anger made him uncomfortable, but at the same time, it also strengthened his belief in killing Blackshirt Investment Bank and Blackshirt Insurance Company.

At this moment, in the chairman's office of Jiehao Financial Group, Hong Tianwen's face was as white as paper, and the cold sweat on his forehead came out like spring water.

As he expected, Washington Mutual's stock price plummeted 90% at the opening of the U.S. stock market.

Jiehao Financial Group holds 120 million shares of Washington Mutual Bank, with a position of $3.50 per share, and now it has almost lost all its money.

And he can’t close the position yet!

Why?

Because these 120 million shares were lent to Blackshirt Investment Bank to short Washington Mutual Bank, he could only close the position if Blackshirt Investment Bank closed the position and returned the 120 million shares to Jie Hao Financial Group.

But now Blackshirt Investment Bank is not ready to close the position at all!

He wants to close his position!

You can still get a little money by closing your position now, but if you do it later, you might not even get a penny.

Thinking of this, Hong Tianwen called Wu Zhanhai from Blackshirt Investment Bank.

The call was quickly connected, and Hong Tianwen couldn't wait to say: "Mr. Wu, please close the position, return the stock to me, and settle it at a price of US$0.12 per share?"

Wu Zhanhai was silent for a moment on the phone. He looked at Wang Guanxi and saw Wang Guanxi shaking his head, so he rejected Hong Tianwen.

"Mr. Hong, I'm sorry, we don't plan to close the position just yet."

Wu Zhanhai then turned on the loudspeaker and asked everyone in the trading room to listen to what Hong Tianwen had to say.

On the phone, Hong Tianwen kneeled down and asked: "Mr. Wu, what price can you tell me to settle it?"

Mr. Wu has been replaced by Mr. Wu, and you have been replaced by you. I have great respect.

From the previous talk of killing the black shirt insurance company, blowing up the black shirt insurance company, and acquiring the black shirt investment bank, step by step it has turned into a groveling, supplicant!

This look made the people in the trading room of the black-shirted investment bank burst into laughter.

At this time, Wang Guanxi stretched out five fingers, so Wu Zhanhai said to Hong Tianwen on the phone: "Mr. Hong, please give it $0.05 per share."

Hong Tianwen knelt down and said, "Can it be higher, $0.09 per share?"

Wu Zhanhai refused: "No, Mr. Hong, if your 120 million shares are settled at a price of US$0.05 per share, you can still get US$6 million. If it weren't for your repeated failures to give us money, We won’t give you alms like this.”

Hong Tianwen suddenly became angry and cursed: "Son of a bitch!"

Then hung up the phone!

And Washington Mutual’s stock price continues to fall!

When it fell to US$0.15 per share, Wang Guanxi said: "Close your position, slowly!"

"Yes, BOSS" Everyone began to close their positions!

10 million shares!

10 million shares!

···

The selling in the market is still very fierce, and a large number of longs want to close their positions!

Although Black Shirt Investment Bank is closing its positions and buying stocks from the market, it is not enough to fill the gap between teeth!

Washington Mutual shares continue to fall!

It soon fell to $0.1 per share!

It has become a penny stock!

Keep falling!

0.09

0.08

0.07

0.06

0.05

Finally, Blackshirt Investment Bank closed all the short orders!

The average position closing position is US$0.1 per share, and the profit per share is US$2.9. 120 million shares, which is US$348 million, or HK$2.697 billion.

Including the previous principal of HK$2.9 billion, Blackshirt Investment Bank has a total of HK$5.597 billion!

Wang Guanxi said: "Withdraw 97 million Hong Kong dollars, use 37 million Hong Kong dollars as bonuses, and interest paid to Jie Hao Financial Group, and the remaining 60 million Hong Kong dollars will be used as daily expenses."

This time I borrowed HK$120 million, worth

"Yes, BOSS" Everyone was excited.

Washington Mutual's stock price is still falling because Jiehao Financial Group is liquidating its position!

Eventually the stock price fell to $0.01 per share.

This time, Industrial Trust and Investment Bank of India closed its position on 120 million shares at US$0.1 per share, resulting in a loss of US$348 million.

Jiehao Financial Group was even worse. The position of 120 million shares was closed at US$0.04 per share, resulting in a loss of US$415 million. In total, it lost 3.217 billion Hong Kong dollars!

The interest paid by Blackshirt Investment Bank was obtained, but how could this meager interest be worth the loss of HK$3.2 billion!

Then Blackshirt Investment Bank announced the results!

[Washington Mutual Bank’s stock price fell into pieces, and Blackshirt Investment Bank made a huge profit of 96%]

[Industrial Trust and Investment Bank of India and Jiehao Financial Group lost all their money on Washington Mutual Bank! 】

Hong Kong’s financial sector is in turmoil!

"Damn it, Black Shirt Investment Bank is really awesome!"

"so amazing!"

"Black shirt investment banks are always successful"

“What the Industrial Trust and Investment Bank of India is, it’s bullshit”

"It's really stupid to form a good financial group and go against the black shirt investment bank."

"Yeah, I heard that Black Shirt Investment Bank shorted Washington Mutual Bank's stock because it borrowed money from Jiehao Financial Group, with 2% monthly interest."

"Haha, now it's funny!"