Rebirth of the Financial Crisis Sweeping the World

Chapter 402 402Silicon Valley Bank, short of money

At this time, Wang Guanxi said to the two people on the phone: "Didn't you say before that I couldn't borrow 100 million U.S. dollars due to my credit? Now I have borrowed 300 million U.S. dollars, so slap yourselves in the face, haha."

Jilayu Amin and Feroz Sanghavi will naturally not do it.

"Haha, it's only 300 million U.S. dollars. I, Feroz Sanghavi, can borrow 3 billion U.S. dollars at any time. Are you worthy of showing off in front of me?" Feroz Sanghavi also boasted.

"Wang Guanxi, don't think that with a credit loan of US$300 million, you can bid for Silicon Valley Bank's equity with me!" Jirayu Amin also emphasized: "This Silicon Valley Bank belongs to our United Bank of India."

"Haha, 300 million US dollars, just stay aside!"

Wang Guanxi chuckled: "I have been interested in Silicon Valley Bank for a long time. I will definitely grab it."

How could he give up Silicon Valley Bank to Union Bank of India? This Silicon Valley Bank is also a pawn in his consortium in the United States.

Now during the financial crisis is the best time to acquire banks. If you miss this period, it will be difficult in the future and you will need to spend more money.

This is why Wang Guanxi spent US$750 million to acquire 50% of Huntington Bank from American International Group.

"Haha, grab it? How do you grab it?" Jirayu Amin laughed.

When Wang Guanxi shorted Bank of America, he came to borrow stocks. When he didn't have enough money, he mortgaged Huntington Bank's stocks and borrowed US$500 million from the Bank of Baroda, Indian Overseas Bank and United Bank of India.

Including the original $320 million, the total debt is $820 million.

"Wang Guanxi, sooner or later you will become insolvent. You don't have any extra funds now. Don't try to rob Silicon Valley Bank with me."

Many of Silicon Valley Bank's customers are high-tech companies and they lend money to high-tech companies. It is a well-known lending bank in the technology field.

His family is also a consortium in India. It not only owns Indian Overseas Bank, but also owns high-tech companies. It has invested in many companies in Silicon Valley in the United States.

This time, United Bank of India acquired Silicon Valley Bank, which not only opened up the market in the United States, but also supported family-invested technology companies.

Moreover, Silicon Valley Bank has an international professional team in the technology field, which they also need.

He is bound to win this Silicon Valley Bank.

"Wang Guanxi, I am bound to win. If you don't have money now, don't talk. I'm going to sleep, that's it."

Then the call ended.

Wang Guanxi fell into deep thought,

Now he really has no extra spare funds.

He will not close short positions on Citibank, Wells Fargo, Bank of America Corporation, HSBC!

But now I am short of money and have a lot of debt.

It still owes HK$26.4 billion to Wing Hang Bank.

Bank of East Asia US$750 million.

Bank of Baroda, Indian Overseas Bank, Union Bank of India $820 million.

The shares of Fuji Xun Group were mortgaged to Saudi Prince Alwad.

Huntington Bank's shares were also pledged.

There is also Amazon's equity that has not been pledged.

But this Amazon stake has other uses.

Soon Wang Guanxi will go to the United States to make plans.

Investing in Twitter, Facebook, WhatsApp, Uber, Tesla, and SpaceX also requires a lot of money.

But Wang Guanxi also had no money, so he naturally needed a loan. He pledged his Amazon shares to the bank and then took out a loan to invest in the United States.

“I have no money now”

"Silicon Valley Bank is also very important to me, but we cannot let it be acquired by United Bank of India."

“I have to think of a way to continue borrowing money.”

"Get up tomorrow and let Feng Shaokun and Li Mingbin talk about it."

Then Wang Guanxi took a bath and went to bed.

January 18, Sunday, 1pm.

Wang Guanxi woke up, glanced at the news, and found that data provider Eurekahedge Pte had released a report on the hedge fund industry.

He looked at everything carefully.

At this time, the phone rang. It was Dusty Franco, the head of Legg Mason Group’s Asia Pacific.

Connected.

On the phone, Dusty Franco said: "Mr. Wang, United Bank of India plans to acquire Silicon Valley Bank, a subsidiary of Legg Mason Group. I called you specifically to tell you."

"They have already communicated with our chairman, but I also told the chairman before that you plan to acquire Silicon Valley Bank, so this time you will bid with the Union Bank of India."

Wang Guanxi asked: "How much did they offer before?"

Dusty Franco: "They gave market prices, and our chairman, Mr. Bill Miller, thought of you."

Wang Guanxi said with some displeasure: "If Jilayu Amin hadn't told me that United Bank of India was going to acquire Silicon Valley Bank, I wouldn't have known that you were going to sell the equity of Silicon Valley Bank."

Dusty Franco said in an apologetic tone: "Mr. Wang, I only found out last night. It was very late at that time, so I didn't disturb your rest. I will call you as soon as possible today to tell you this." thing"

Wang Guanxi asked again: "Why do you suddenly want to sell Silicon Valley Bank?"

Dusty Franco sighed: "The recent losses have been quite heavy. Several major customers have just requested to redeem their funds. In addition, our own self-operated assets have also suffered huge losses, so we at Legg Mason Group have no choice. Don’t sell off assets.”

Then he said: "Mr. Wang, do you know that the global hedge fund industry is suffering heavy losses now?"

Wang Guanxi smiled and said: 'Of course I know, I read the report of data provider Eurekahedge Pte. ’

An industry report just released today shows that the global hedge fund industry suffered its largest loss in history in 2008, reaching US$350 billion, as the worst financial crisis since the Great Depression caused returns to plummet and investors withdrew. funds.

Data provider Eurekahedge Pte released a preliminary report today saying that approximately 90% of the above-mentioned US$350 billion was lost in the three months to the end of November last year.

From a regional perspective, hedge funds investing in North America suffered the most serious losses, accounting for approximately US$183 billion.

At the end of 2008, the total global hedge fund industry fell by about 1/5 from the previous historical high of $1.9 trillion to $1.5 trillion!

Legg Mason Group's hedge funds all suffered investment losses, and investors withdrew their funds.

Affected by the credit crisis, hedge fund lenders were forced to call in loans, and some funds had to sell assets at low prices.

Dusty Franco: “Now the global economic growth is slowing down, which has led to the overall decline of the hedge fund industry. Everyone has fallen into a liquidity crisis. We at Legg Mason have also suffered huge losses, as well as redemptions from investors. "Back"

Wang Guanxi nodded: "Yes, especially the scandal of Wall Street swindler Bernard Madoff defrauding US$65 billion, which has made many investors even more doubtful about the reliability of hedge funds."

Dusty Franco sighed: "We at Legg Mason invested in Bernard Madoff and lost more than one billion US dollars, and then one of the companies we invested in invested in Bernard Madoff and lost. 80%!”

"This time we were deceived by the huge fraudster Bernard Madoff. "

"Coupled with the massive redemptions from large customers, now we have to sell assets."

Upon hearing this, Wang Guanxi asked: "Does Legg Mason Group have any good assets to sell besides Silicon Valley Bank?"

Dusty Franco replied: "There are none at the moment. If there are, Mr. Wang, I will let you know as soon as possible."

Then he said: "By the way, Mr. Jilayu Amin from the United Bank of India is coming to our place to bid tonight. Are you free to come over?"

"Well, I will go there then." After ending the phone call, Wang Guanxi opened the stock price chart of Silicon Valley Bank.

Silicon Valley Bank's stock price is at US$22 per share, while the total share capital is 54 million shares, and the market value is currently US$1.188 billion.

If you want to acquire 50% of the equity, it will cost about US$600 million based on the market price.

Now Union Bank of India is bidding and more money is needed.

Damn it, Wang Guanxi has no money now.

There is nothing left to pledge.