Rebirth of the Financial Crisis Sweeping the World

2.6

2.7

2.8

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$3.0 per share!

Wachovia's stock price actually broke through to the 3.0 level.

There is already a floating loss of US$300 million on the books.

The five people were frightened in their hearts and their faces were pale!

Cold sweat broke out on my back, like spring water gushing out.

"No!"

"Oh no!"

"How can this be?"

"Why is this happening!"

"Ah!! Damn it!"

The stock price is still rising.

3.1

3.2

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It finally hit $3.50 per share!

Their floating losses on their books were as high as US$400 million, and they still had a net worth of US$400 million in their accounts.

It’s half a loss.

The five people's hearts were bleeding and their bodies were shaking again.

I never expected that in the blink of an eye, the U.S. stock market would skyrocket again.

The share price of Wachovia Bank also shot up to $3.50 per share, which really pissed the five of them off.

Li Songwei asked with a pale face: "Our floating losses on the books have reached 400 million US dollars. What should we do? What should we do? What should we do?"

At this moment, he had so much loss on his books that he didn't know what to do, and he was very nervous and anxious.

400 million US dollars.

This is not a small amount, it can kill people. US$400 million is HK$3.1 billion.

In total, each of the five people suffered a loss of HK$620 million.

This time, asking Blackshirt Investment Bank to borrow 200 million shares of Wachovia Bank for shorting has obviously become a wrong decision.

You Zhenxuan said fearfully: "Now that Wachovia's stock price has reached 3.5 US dollars per share, will we be liquidated?"

Originally, they raised US$500 million to short Wachovia Bank, and then last night, something unexpected happened.

At that time, because they were worried about losing too much, they deposited US$300 million, for a total of US$800 million.

But now it has a floating loss of US$400 million.

If Wachovia's stock price rose another $2, their account would be wiped out.

In other words, when Wachovia's stock price rises to $5.5 per share, their accounts will be liquidated.

Of course, before Wachovia's stock price rises to $5.5 per share, they will be required to make a margin call by the custodian bank, but they have no spare funds.

Do you want to go back to the family?

The family will definitely not support it.

In fact, the five of them are all from families listed on Forbes' Rich List in Hong Kong. Although they are not among the top ten financial groups, they are still very powerful families.

They regret in their hearts why they couldn't wait to short Wachovia Bank after borrowing 200 million shares of Wachovia Bank from Black Shirt Investment Bank!

You should wait another day or two before going short.

Jiang Jiwei was furious and cursed angrily: "Paradise, what the hell did this bastard Wachovia take?"

"The stock price has risen so much?"

"Did Wachovia Bank be acquired at a premium? Impossible!"

"Damn it, there's no news right now!"

As he spoke, Jiang Jiwei angrily squeezed the mineral water bottle in his hand and deformed it. The water splashed directly onto the pants of the female secretary not far away.

Then got wet.

The female secretary was so embarrassed that she walked over to Jiang Jiwei and gave Jiang Jiwei a pink punch and said, "Mr. Jiang, how bad are you?"

Jiang Jiwei said indifferently: "Go aside."

The female secretary was immediately frightened and ran away.

"Well, this time Wachovia's stock price has reached 3.5 US dollars per share. If we close the position now, 200 million shares will definitely make Wachovia's stock price continue to skyrocket!" Yue Runlin took out a tissue and wiped it. Wiping the sweat on his forehead, his back was soaked.

Today's Wachovia Bank stock price is too strong, standing at 3.5 US dollars per share. They are losing so much money on their books, which really scares him.

This account holds a short order of 200 million shares. If the position is closed, it will be equivalent to buying 200 million shares in the market.

In this case, Wachovia's stock price will rise to an unknown extent.

To be honest, he regrets it very much now. If he had known earlier, he should not have taken such a big risk to short Wachovia Bank!

It was an extremely wrong and stupid investment. Now all five of them have fallen into the fire pit. How can they climb out of the fire pit?

Can we just stand and be burned to death?

Ju Debiao also said: "Then what should we do now?"

"If we close the position, Wachovia's stock price will continue to skyrocket, and we will have to lose at least US$500 million."

He calculated carefully, if he closed the short position of 200 million shares of Wachovia Bank, he would buy 200 million shares!

If you buy 200 million shares, wouldn't the stock price hit $6 per share?

this is possible.

Of course, many institutions that hunt for low prices will definitely close their positions midway.

If you really calculate carefully, they will lose at least US$3.5 per share after closing the position. 200 million shares is US$700 million.

Their principal is only US$800 million. If they exit now, they may lose US$700 million.

"Sigh, we can't afford the loss between 500 and 700 million US dollars."

"Keep on carrying on, there is still a glimmer of hope."

Negotiations between Wachovia Bank, Citibank, and Wells Fargo are still ongoing, and who knows what the outcome will be.

Previously, Lehman Brothers and Washington Mutual went bankrupt after negotiations.

At that time, before the results of the negotiations came out, the stock prices of Lehman Brothers and Washington Mutual Bank rose. After the negotiations broke down, the stock prices fell into pieces.

"This Wachovia situation is very similar to what happened to Lehman Brothers and Washington Mutual before it."

"We can carry on!"

"If we keep fighting, we will definitely win."

"Nary, this black-shirted investment bank will never have the last laugh."

"This Wachovia Bank must go bankrupt. It must go bankrupt. Damn it!"

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At this moment, Blackshirt Investment Bank, Wang Guanxi and others were extremely excited as they watched Wachovia's share price surge to 3.5 US dollars per share.

"Haha, Li Songwei, You Zhenxuan, Jiang Jiwei, Yue Runlin, and Ju Debiao are finished."

"They may be going bankrupt."

"Wahaha!"

"These grandchildren!"

··

Blackshirt Investment Bank currently has a profit of US$400 million on its books, which is simply exciting to everyone.

I thought it would be good to hit $3.00 per share, but I didn't expect it to hit $3.50 per share.

“It’s incredible”

"It's too fierce, damn!"

"Our enemies are dead this time"

This time, five companies, Yiqun Securities, OP Securities, Dali Securities, Gaoxin Securities, and Fengnian Securities, were completely finished.

Just look forward to their liquidation.

Wang Guanxi said: "You guys keep an eye on the stock price, and if anything happens, report it to me at any time."

After saying that, Wang Guanxi left.

"Yes, boss"

Time passes slowly.

The U.S. stock market is on a tear!

U.S. stocks rebounded strongly on Tuesday after Monday's plunge, with the Dow Jones Industrial Average ranking third in terms of points gain in history.

Investors are optimistic that Congress will reconsider the rescue plan, and the Dow Jones Industrial Average rose more than 500 points during the session.

Frederick Laffey, vice president and senior options strategist at Goldman Sachs: "Maybe the sky is not falling."

As of the close, the Dow Jones Industrial Average rose 485 points to close at 10,850 points, an increase of 4.68%.

The Dow fell 6% this month and 4.4% in the third quarter.

A total of 29 of the 30 Dow components rose, led by financial stocks.

Citigroup rose 15.6%, JPMorgan rose 13.9%, and Bank of America rose 15.7%.

The S\u0026P 500 Index rose 58 points to close at 1,164 points, an increase of 5.27%.

The S\u0026P 500 is down 9.2% for the month and 9% for the quarter.

All 10 major S\u0026P industry sectors rose, led by financial stocks.

The Nasdaq Composite Index rose 98.60 points to 2082.33 points, an increase of 4.97%. The Nasdaq is down 12% for the month and 9.2% for the quarter.

Citibank: The major stock indexes continued to climb in the afternoon, with some investors believing that the stock market will perform better in the fourth quarter than in the third quarter.

The rally was attributed to the prospect of a new U.S. government rescue plan, short sellers closing their positions at the end of the quarter, and positive economic data released today.

Morgan Stanley: The U.S. Securities and Exchange Commission and the Financial Accounting Standards Board are negotiating on accounting regulations for estimating 'reasonable value', which may delay the implementation of very complex accounting regulations for calculating market value, which also provides the market with Upward momentum.

Lane Smith, vice president of Blackshirt Investment Bank: Since the stock market fell so much on Monday, it's easy to understand why bargain hunters are jumping into the market.

I wouldn't be surprised to see a rebound today after the stock market plunge.

U.S. stocks plummeted on Monday as the House of Representatives rejected the Troubled Asset Relief Plan, with the Dow recording its largest single-day drop in history.

As of Monday's close, the Dow had fallen 10.2% in September, a month that has become a watershed for the U.S. financial system.

Ryan Smith analyzed: It is easy to oppose the rescue plan and blame corporate CEOs and Wall Street tycoons, but if the company lacks liquidity and its growth prospects are threatened, it will lead to employee unemployment and slow economic growth.

Events in September included the nationalization of Fannie Mae and Freddie Mac, the largest financial institutions in the United States.

Lehman Brothers, the fourth largest investment bank in the United States, declared bankruptcy.

The U.S. government obtained a majority stake in AIG, which was once a component of the Dow Jones Industrial Average, by providing an $85 billion loan.

Washington Mutual Bank failed.

At the same time, the Treasury had to provide support to financial market funds to prevent liquidity from drying up.

Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke decided to assist troubled financial institutions to prevent the situation from expanding.

The interbank lending rate jumped from 2.56% to 6.87%.

Then Blackshirt Investment Bank and Blackshirt Insurance released another bombshell.

"Wachovia will receive a government guarantee and then be acquired by Citibank or Wells Fargo, and the acquisition price may exceed $6 per share!"

At the closing of the U.S. stock market tonight, Wachovia's stock price has reached US$3.90 per share, and will reach over US$4 per share at any time!

Then it is entirely possible to acquire Wachovia Bank at a premium of 50% on the basis of $4.

Soon the big news came.

Blackshirt Investment Bank really hit the mark.

[The U.S. government will guarantee Wachovia Bank to prevent Wachovia Bank from following in the footsteps of Lehman Brothers and Washington Mutual Bank and causing greater financial turmoil]

Soros Quantum Fund, Soros said with lingering fear: "Fortunately, I closed all the short positions of Wachovia Bank before, otherwise I would have lost a lot of profits."

Yesterday, Soros Quantum Fund took advantage of the fact that Wachovia Bank was about to go bankrupt and the US$800 billion rescue plan was rejected by Congress, and smashed Wachovia Bank, triggering a wave of selling!

Then Wachovia's share price completely collapsed, and then Blackshirt Investment Bank bought the bottom of Wachovia in a big way.

At that time, Soros thought that the people at the black-shirted investment bank were crazy, and they dared to take such a huge risk to buy Wachovia Bank at the bottom!

This is simply gambling with money!

Aren't you worried about losing all your money?

But Soros soon made a conclusion. At that time, he felt that Blackshirt Investment Bank was sure to win by buying Wachovia Bank at the bottom.

So Soros retreated and made $350 million.

Now the U.S. government has really guaranteed Wachovia Bank. Once Wachovia Bank is acquired, it will definitely be acquired at a premium.

“True Black Shirt Investment Bank’s investment vision is indeed sharp”

At this moment, Soros could not help but sigh slightly.

Fortunately, he decisively asked Soros Quantum Fund to clear the short position of Wachovia Bank.

Otherwise, I don’t know how much profit I will lose now.

The vice president on the side, Luojia Powers, said: "Boss, this man in the investment bank in black is very much like you when you were young. He is very courageous and can do things that others dare not do."

Soros was so courageous in the past that he directly attacked the Bank of England and even knocked it to its knees!

Although the boss of the black-shirted investment bank is awesome, he feels he is still not as good as Soros.

Besides, Wachovia's stock price was originally driven by the Soros Quantum Fund, and this black-shirted investment bank was just picking up the slack.

Buying large amounts at low prices, full of gambling, and then got lucky, the U.S. government guaranteed Wachovia Bank.

Soros smiled lightly and said nothing!

And the next day, October 1st.

Hong Kong's financial community has been shocked by Black Shirt Investment Bank!

"Damn it, this black-shirted investment bank is going to make a lot of money again this time."

"Oh my God, Blackshirt Investment Bank bought the stock of Wachovia Bank early, and now I don't know how much money it will make."

"Let me go, this black-shirted investment bank is just picking up money."

"Yesterday on Monday, Wachovia's stock crashed. This black-shirted investment bank bought Wachovia's stock at a very low price. This time it is going to be prosperous."

"Oh, if I had known that Black Shirt Investment Bank was bargain hunting Wachovia Bank on a large scale, I would have followed suit."

"Following the black-shirted investment bank to buy Wachovia Bank at the bottom will not eat meat, but you can also get a lot of broth."

"Oh, I remember that there were five securities companies in Hong Kong that were fighting against the black-shirted investment banks and shorted Wachovia Bank in large sums."

"This time the opponents of Black Shirt Investment Bank will be finished again!"

··

Destroy the Blackshirt Alliance now.

The faces of the presidents of Daoheng Securities, CLSA, Yiqun Securities, OP Securities, Dali Securities, Gaoxin Securities, and Fengnian Securities were extremely gloomy.

The enemy's gain made them extremely angry.

Jiao Xiongbing of Daoheng Securities scolded: "Wachovia Bank is clearly going bankrupt, and now the U.S. government is actually guaranteeing Wachovia Bank!"

"Fuck, this black-shirted investment bank is really fucking lucky."

When Black Shirt Investment Bank bought Wachovia Bank, which was on the verge of bankruptcy, Jiao Xiongbing couldn't be happier.

But now Wachovia Bank has received a guarantee from the U.S. government.

This is simply bad luck.

Previously, Lehman Brothers and Washington Mutual Bank did not receive guarantees from the U.S. government, so no buyer dared to buy them.

Now that Wachovia Bank has obtained a guarantee from the U.S. government, it means that Wachovia Bank is very likely to be acquired at a premium.

Adolf Roguli of CLSA said with envy: "Damn it, Blackshirt Investment Bank has made money again this time, damn it, you idiot!"

Dow Heng Securities and CLSA were long on Hang Seng Bank, but they were still losing money on their books.

And it is not certain whether Hang Seng Bank's share price can still reach above HK$80.00 per share.

Now seeing that the Black Shirt Investment Bank is going to make a lot of money, the jealousy in Adolf Roguli's heart is like a huge wave that cannot be contained.

The other five people were frightened out of their wits.

Li Songwei from Yiqun Securities asked with a pale face: "What should we do now? I can't make up my mind, let's talk about it."

Now they jointly shorted Wachovia Bank, shorting a total of 200 million shares, with a loss of US$480 million on their books.

This is really a loss to my grandma’s family.

Now he doesn't even know what to choose?

Continue to carry on?

Once Wachovia Bank is acquired at a premium, they will be liquidated.

You Zhenxuan of OP Securities said with a blank face: "The share price of Wachovia Bank is about to reach US$4.00 per share."

"And we have a floating loss of US$480 million on our books, and we have US$320 million left."

"If Wachovia's stock price rises another $1.60, our account will be wiped out."

"What should we do now!"

"What should I do!"

Now that Wachovia is guaranteed by the U.S. government, the probability of bankruptcy is less than 20%. Other financial institutions will definitely acquire Wachovia.

Now the negotiations between Citibank, Wells Fargo and Wachovia Bank are definitely going to make big progress.

Jiang Jiwei from Dali Securities said in horror: "Wachovia Bank will definitely be acquired at a premium. Should we close our position after the US stock market opens tonight?"

He felt that Wachovia Bank would definitely be acquired at a premium. If it were acquired at $6 per share, it would be unbelievable.

"It's too late for us to close our positions early, otherwise we will lose not a penny."

Indeed, if you close your position tonight, you may still be able to get some of your money back.

But if there is no institution to hedge against them, they will close the short order of 200 million shares and buy 200 million shares in the market, which will make Wachovia's stock price rise to more than 6 US dollars per share.

The only chance is to negotiate with Blackshirt Investment Bank and settle at a certain price.

Yue Runlin from Gaoxin Securities said unwillingly: "Are we going to negotiate with Blackshirt Investment Bank?"

"This Wachovia Bank may not be acquired at a premium."

"Besides, the current financial crisis is so serious and Wachovia's situation is so bad, it will not be acquired at a high price."

"The acquisition price is at most $4 per share."

Ju Debiao from Fengnian Securities shook his head: "Mr. Yue, don't be too optimistic. The current situation is very unfavorable to us."

"This Wachovia Bank has been guaranteed by the U.S. government."

"We will be acquired by Citibank and Wells Fargo at any time. We can't continue to consume money."

"I suggest you stop the loss and negotiate the settlement price with Blackshirt Investment Bank."

They borrowed 200 million shares from Blackshirt Investment Bank, and as long as they close their positions at the agreed price, they can get some money back.

For example, if they want to realize their losses, Blackshirt Investment Bank also needs to realize their profits.

Their short-selling funds are held in custody by the bank. As long as both parties reach an agreement, they will be settled directly at a price.

What Ju Debiao said is indeed very reasonable.

Others also agreed to negotiate with Blackshirt Investment Bank and agreed on a settlement price.

Although Yue Runlin had some complaints, he was not too opposed to it.

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

"Mr. Wu, we want to talk to you"

"What to talk about?"

"The price at which Wachovia shares settled"

"Okay, wait a moment, I'll talk to the boss"

After ending the phone call, Wu Zhanhai said excitedly: "Boss, Li Songwei, You Zhenxuan, Jiang Jiwei, Yue Runlin, Ju Debiao and others called and wanted to negotiate with us and settle at an agreed price."

"Oh? You want to negotiate with us?" Wang Guanxi chuckled and asked, "What price do they want to settle at?"

Blackshirt Investment Bank went long and had a profit of US$480 million on its books, which was a huge profit of 160%.

Wang Guanxi was very carefree in his heart.

Especially the enemies also surrendered and really begged him for mercy.

Wu Zhanhai said: "Settlement is based on the market price, which is US$3.9 per share. They said that if we agree, we will immediately make a profit of US$480 million."

Li Songwei of Yiqun Securities, You Zhenxuan of Dongying Securities, Jiang Jiwei of Dali Securities, Yue Runlin of Gaoxin Securities, Ju Debiao of Fengnian Securities and others finally surrendered.

But is the settlement price too low, making Blackshirt Investment Bank a fool?

Lu Jianyan said: "Now Wachovia Bank is likely to be acquired at a premium within this week. These guys can't wait to negotiate with us because they must be afraid of liquidating their positions."

Guan Zhenyi also said: "Let's settle at a price of at least 4.5 US dollars!"

Li Guangyu: “Let’s say $4.8 per share.”

Wang Guanxi thought for a while and said: "Settlement at a price of US$5 per share. If the five of them don't agree, forget it."

Anyway, Wachovia Bank is about to be acquired, and it is unclear how much premium it will pay for the acquisition.

However, Wang Guanxi felt that the purchase price could be above US$5.00 per share. Li Songwei and others' attempt to settle at US$3.9 per share was simply a dream.

Impossible to agree.

"Yes, boss, I'll notify them right away." Wu Zhanhai went to call the people from the Black Shirt Alliance.

The call was answered quickly.

Wu Zhanhai said: "Mr. Li, our boss has said that the settlement price is US$5 per share. Please think carefully about it."

"What??"

"Settlement price of $5 per share?"

"$5 per share??? Are you kidding me?"

"Mr. Wu, are you mistaken? The price is so high?"

"The current share price of Wachovia Bank is only $3.9 per share, and you are actually asking for $5 per share to settle the matter?"

Li Songwei, You Zhenxuan, Jiang Jiwei, Yue Runlin, and Ju Debiao were all dumbfounded.

This black-shirted investment bank is so greedy that it wants $5 per share before settlement!

It really pissed them off.

Are you just treating them like stupid pigs?

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