Rebirth of the Strongest Tycoon

Chapter 1390 Wells Fargo was hacked

In fact, Wells Fargo doesn't really have more than $10 billion in liquidity on hand.

Before long the yen, the British pound and other currencies, short the dollar, the funds entering the market are basically the principal used.

The main purpose is to preserve the value of funds.

But this time, I want to take over the assets of the Mellon consortium, withdraw the funds in a short period of time, and find other financial companies to cooperate in the situation of leveraged capital allocation.

It's just that these businesses are relatively secretive, and the partners will not go around shouting, so as not to smear their reputation, and no company will dare to cooperate in the future.

Of course, Douglas Mather and others are not clear.

And over the years, Wells Fargo has acquired so many banks, and the assets originally held by the acquired banks have been assigned to the bank's asset management department.

Xia Yu once discussed Wells Fargo's plan with Peter Lynch in detail, and the latter has always followed it.

Therefore, over the years, non-performing loans have been dealt with at low prices in a timely manner, and some lending cooperation with no strategic significance has been recovered after the loan expires and will not be renewed.

Wells Fargo's funds are more about providing consumer loans and microloans to individuals, and then providing financial support to companies under the Polaris consortium. .

It's just that most of the companies in the Polaris consortium are companies with great potential that Xia Yu has tapped. On the premise of not conducting mergers and acquisitions, they generally only provide the most initial expansion funds, and these companies can form an internal virtuous circle.

Therefore, in order to prevent the funds from being idle, Wells Fargo has put a lot of funds into the asset management department for asset investment gains.

Futures, stocks, bonds, etc. are all involved.

This time, to take over the assets of the Mellon consortium, Wells Fargo will sell a lot of funds ahead of time and withdraw a lot of funds.

Of course, there is no need to announce these operations.

Therefore, this made Douglas Mather misjudgment, thinking that Wells Fargo's capital chain is really tight!

And Douglas Mather's method is simple and crude and clumsy, but it is very effective.

That is to let the media question Wells Fargo's capital chain problem and directly make things bigger.

Create panic among depositors and push Wells Fargo to the cusp!

After all, since the bankruptcy of Bao'en Plaza Bank in 1982, there have been bank failures one after another, and the failure of the Bank of Illinois in mainland China, a large bank, has pushed the tide of failures to a peak, causing a series of adverse effects.

In particular, in May of this year, the failure of Maryland's savings and credit institution ultimately cost the Maryland deposit insurance fund and taxpayers $185 million.

Within a month, many banks in Ohio went bankrupt, which directly led to the bankruptcy of the Ohio Deposit Insurance Fund!

The banking industry situation in other states is also relatively rotten.

So much so that by August, the US Federal Savings and Loan Insurance Corporation's original insurance fund of more than 20 billion US dollars was left with only 4.6 billion US dollars.

So much so that the chairman of the Federal Savings and Loan Insurance Corporation, Gray, tried to get support for the company's capital injection in Congress!

As a result, the nerves of many savers have long been tense.

On the morning of November 15th.

The Cleveland News, the largest newspaper in the Cleveland area, issued a piece of news that questioned Wells Fargo's huge operating risks.

The report is not just rhetoric, but seems to be well-founded.

The report also listed a series of recent acquisitions by Wells Fargo, with capital consumption reaching tens of billions of dollars, and asset investment is very disorderly.

And Wells Fargo, as the third largest bank in the United States, is still not listed, the author questioned the operation of Wells Fargo...

The whole article is written in a worried and for the country and the people, which is extremely provocative and infectious.

That morning, after many readers in Cleveland read the newspaper, many people were bewitched.

Some relatively cautious depositors or companies began to apply for funds.

And the reporter of the newspaper specially photographed the crowded scene of a Wells Fargo branch in the Cleveland area.

That night, the Cleveland Evening News put the photo on its front page and wrote a book about the phenomenon.

At the same time, some newspapers outside Ohio, with an artificial push, reported the news.

And in order to avoid liability as much as possible, these evening papers directly reprint the reports of the Cleveland News.

Get this little action done.

Things are escalating fast!

In fact, when the Cleveland News reported the negative news about Wells Fargo, the head of the Cleveland-area branch reported the news.

At around 9 a.m. on the 15th, Wells Fargo President Yarman Simmons got the news.

To this end, Yarman Simmons also specially summoned his subordinates to discuss the matter.

The outcome of the discussions at the time was to temporarily allow other Ohio-wide branches to deploy funds to the branch in Cleveland, while keeping things under control in the Cleveland area.

Wells Fargo headquarters will not specifically refute rumors and avoid taking the initiative to expand things.

Don't have such a big deal, but he took the initiative to attract the attention of the media from all over the country.

Yarman Simmons knows the urgency of the media, sales are the first, and he can't wait to make a big deal, anyway, the consequences have nothing to do with the media.

Of course, he didn't do nothing.

On the one hand, he made people keep an eye on the development of the situation, and on the other hand, he went to the asset management department, so that the staff of the department increased the asset sales that day, and returned more than 500 million US dollars of funds.

This is the safest way. In the final analysis, liquidity is the greatest confidence!

Wait until the bank in the Cleveland area arrives at the time of the mandatory closing time in the afternoon.

Only after statistics did we find that the entire city of Cleveland, including the big town below, had a total of 17 branches, and a total of more than 24 million US dollars of deposits were withdrawn that day!

After seeing this statistic, Yarman Simmons looked very serious.

And with the evening, after the evening newspapers in other regions also reprinted the news, Yarman Simmons knew that things were out of control!

Yarman Simmons asked the think tank to discuss countermeasures.

On the other side, it went directly to the home of Peter Lynch, the chairman of Polaris Capital.

Now that the trouble is clearly aimed at the entire consortium, how to deal with it can only be decided by the consortium level!

...

It was after seven o'clock in the evening at Peter Lynch's house.

"... Chairman, the specific situation is like this."

"Now the newspapers below, there are already newspapers in thirty-five states reporting our negative news."

"Although it is off-duty time now, according to the reports of the employees below, there are still many people queuing up to withdraw money from the ATM machine in our branch. I estimate that our ATM machine will be empty tonight!"

"This matter is very likely to be done by the Cleveland consortium!"

Yarman Simmons reported to Peter Lynch with a solemn expression and expressed his guess.

Peter Lynch nodded slightly. After thinking for a long time, he asked, "Yarman, how much liquidity does the bank have now?"

"Although we have consumed a lot during this period, every day I let the asset management department sell the bonds and stocks that I had invested in before, and I got a lot of money back."

"As of six o'clock tonight, we have $4.7 billion in liquidity in our bank!"

Yarman Simmons reported the situation truthfully.

Peter Lynch frowned slightly, didn't speak, picked up the phone on the desk, and made two calls in succession.

The people who answered the phone were the presidents of Northern Trust Bank and Toronto-Dominion Bank of Canada.

After the call, Peter Lynch said: "For the time being, you can rest assured that Northern Trust and Toronto-Dominion Bank combined can lend $6 billion at any time."

Yarman Simonston breathed a sigh of relief.

With tens of billions of dollars in liquidity, that's really not bad.

It can last for a long time, and during this time, he can also continue to let the asset management department sell funds.

In this way, Wells Fargo's cash flow should be able to stabilize.

"Yarman, go and stabilize the mood of the company's employees. It's too late to deal with it tonight. I'll think about it at night and make arrangements tomorrow!" Peter Lynch instructed Yarman Simmons.

"Okay, Chairman, then I won't disturb you for now."

"I'm going back."

After all, Arman Simmons got up and left.

And Peter Lynch was planning to figure out a general response plan before reporting the situation to Xia Yu.

The encrypted phone in his home rang.

As soon as he answered the phone, it was indeed the boss Xia Yu who called and asked about the specific situation.

Peter Lynch truthfully reported the situation to Xia Yu, and then added his own proposal, but it was directly rejected by Xia Yu.

And Xia Yu proposed a response plan that made Peter Lynch proud.

Or, it should be said that it is a counterattack plan!

Since the Cleveland consortium is behind the scenes, questioning the tightness of Wells Fargo's capital chain, it wants to make Wells Fargo into a whirlpool.

It is useless to refute rumors alone, it cannot convince everyone, and bank deposits will still be lost.

Then just throw a punch and let everyone see if Wells Fargo really has a tight capital chain!