Rebirth of the Strongest Tycoon

After tidying up the room, we had lunch at home by the way. After taking a nap, Xia Yu and Elena went to the Bright Fund Company together.

"Hi boss!"

Seeing Xia Yu and Elena coming together, George Berkeley immediately said hello to Xia Yu, and then nodded to Elena.

"George, long time no see. Has your work been stressful recently?"

Xia Yu asked casually.

George Berkeley smiled and shook his head: "There's not much pressure. With your boss's guidance, it has pointed out the direction for my work. The company won't take detours, it's easier!"

"It's good to relax, think about it when you have time!"

"I see!"

...

While chatting and laughing, a group of people came to the office, and after being seated one after another, someone immediately made tea and made coffee.

After the subordinates who served went out, Xia Yu took a sip of tea and asked quietly, "How is the situation of Standard Chartered Bank and Royal Bank of Scotland?"

With a smile on George Berkeley's face, he said, "Boss, we have acquired a lot of shares in these two banks."

"Among them, 26 percent of Standard Chartered Bank was acquired, 15 percent of the equity was acquired from a shell company from four small shareholders, and the remaining 9 percent was acquired from the stock market."

"Acquired 22 percent of RBS, 16 percent from five minority shareholders, and 6 percent from the stock market."

"Because we have deliberately stretched the time line, the stock prices of the two banks have not risen much now."

After careful calculation, nine months have passed since May last year.

As for the entire acquisition plan, the wholly-owned acquisition of the two banks will be completed within two years. The current shareholding ratio is relatively low, which shows that George Berkeley is cautious.

Xia Yu took a sip of tea, let out a sigh of heat, and asked, "London Gold Futures, Standard Chartered Bank and Royal Bank of Scotland have eaten a lot, right?"

George Berkeley smiled and nodded: "They have eaten a lot. Among them, Standard Chartered Bank has eaten our $2 billion contract, and Royal Bank of Scotland has eaten our $2.2 billion contract."

"As for whether they have taken over the futures contracts of other institutions, I haven't found out yet!"

Xia Yu said with a smile: "It doesn't matter if you don't find out, it's enough for them to take over our contract."

By the end of this month, it will be more than ten days before the international gold price will fall below 600 points.

Standard Chartered Bank and Royal Bank of Scotland took the order above 830 points.

Even if it only fell to 600 points, the decline was more than 27.7%.

This means that by then, Standard Chartered Bank will lose at least more than 550 million US dollars, and the Royal Bank of Scotland will lose more than 600 million US dollars.

It is equivalent to the net profit of each bank in one or two years or two or three years.

As long as this thunder bursts out, it can definitely blow up the stock prices of the two banks, and Standard Chartered Bank will go bankrupt if it is not good.

Thinking of bankruptcy, Xia Yu moved in his heart and asked George Berkeley with concern, "What is the total capital of George, Standard Chartered Bank and Royal Bank of Scotland?"

Although there is only one word difference between the total capital and total assets of a bank, there are essential differences.

Bank capital refers to the self-owned capital invested by the bank's capital owner to obtain profits from the operation of the bank, and the monetary capital concentrated in the bank through various channels.

Bank capital is to bear the unexpected losses of the bank.

In order to prevent loan and investment losses from affecting normal operations, banks shall draw loan loss reserves according to the risk status of loans and investments.

However, the loan loss reserve only covers expected operating losses, and the loan and investment losses that exceed the loan loss reserve are borne by capital.

If unexpected losses exceed capital, the bank is insolvent and will fail.

In the past life, the Bankruptcy of Barings, which resounded all over the world, was forced to go bankrupt and liquidate because the losses exceeded the bank's capital.

In the previous life in 1995, Barings Bank, which had total assets of more than 6 billion pounds and controlled 27 billion pounds of assets worldwide, lost 600 million pounds because of a subordinate's own assertion and high leverage to speculate on Nikkei 225 futures contracts. Well beyond the £350 million capitalization of Barings Bank.

Barings went bankrupt and was eventually bought by ING for a token price of one pound more than ten days later.

Therefore, for banks, bank capital is extremely important. The higher the bank capital, the lower the risk of bankruptcy.

George Berkeley smiled and said solemnly: "The total capital of Standard Chartered Bank is 250 million pounds, and the total capital of Royal Bank of Scotland is even higher, which is 300 million pounds."

The current GBP/USD exchange rate is 1 GBP = 2.29 USD.

The exchange rate information appeared in Xia Yu's mind, and he made a quick calculation in his mind.

Converted into pounds, Standard Chartered lost about 240 million pounds.

The Royal Bank of Scotland lost more than 260 million pounds.

That is to say, when the international gold price falls below 600 points, even if Standard Chartered Bank does not receive gold futures contracts from other institutions, Standard Chartered Bank will lose 96% of its total capital.

If the international gold price drops ten more points and falls below 590 points, Standard Chartered Bank will lose 10 million pounds, and then the total capital of Standard Chartered Bank will be directly in deficit.

Then as long as the Bank of England of the Bank of England is behind, the latter will directly intervene, prohibiting Standard Chartered Bank from engaging in trading activities and forcibly applying for asset liquidation.

Looking at the situation now, the Royal Bank of Scotland is a little better, and it will not go bankrupt.

But Standard Chartered Bank's risk is big!

In fact, Standard Chartered Bank should be lucky now, because the depreciation of the dollar has made the pound relatively appreciate, rising to 2.29 points.

If it was last year, the exchange rate of GBP/USD was 1.92, then when the international gold price fell below 600 points, Standard Chartered Bank would go bankrupt 100%, and even the Royal Bank of Scotland, which seemed to be safe at this time, would go bankrupt!

At that time, it will definitely cause an earthquake in the UK and even the European financial industry.

But even in this situation, the management of Standard Chartered Bank and Royal Bank of Scotland must be frightened, for fear that the international gold price will continue to plummet.

If one is bad, they will all be killed.

If you invest correctly, you can make a lot of money, but if you fail to invest, you must bear the consequences of the failure.

"If you do something, maybe you can make Standard Chartered Bank go bankrupt..."

A thought flashed in Xia Yu's mind.

Then his thoughts diverged, and he thought of the case of Barings Bank's symbolic acquisition of one pound by ING in the previous life, and his heart was just about to move.

Fortunately, reason dispelled his thoughts in time.

If Standard Chartered Bank really goes bankrupt, it will not be a good thing for him, because then it will not be his turn to pick up the body.

After all, this is just an abrupt investment bankruptcy, not because of management or other factors. Just injecting capital can revive the bank and turn it back into a high-quality bank.

But even if Standard Chartered Bank is not bankrupted, this news will be a handle. If it is used well, it can coerce the senior management and shareholders of Standard Chartered Bank to agree to sell the equity to him at a low price, and they will never dare to speak out.

Otherwise, a bad thing is that the share price of Standard Chartered Bank exploded to the bottom, and they suffered even more losses.

"It seems that this time the advantage is greater, so we can't hastily use a method similar to the Chiba Bank."

"Not only can I not take the initiative to expose it, but I have to find a way to cover up Standard Chartered Bank and Royal Bank of Scotland! In order to reach a private transaction!"

Thinking of this, Xia Yu instructed George Berkeley: "George, be careful not to leak these two news, and continue to wait for the price of gold to drop. After it falls to 600 points, you will contact the shareholders of Standard Chartered Bank and Royal Bank of Scotland. Forcing them to sell the equity to us at a low price."

"If this time is successful, the two-year plan can be completed ahead of schedule!"

George Berkeley thinks so too. Although it is insidious to do so, it is in their best interest, saving money and reducing difficulty.

In order not to be bombarded, the shareholders of the two banks will sell their equity to them at a low price, and they have to take the initiative to help solve the trouble of possible government interference.

George Berkeley nodded confidently and assured: "Boss, don't worry, I know what to do, and I will do my best to acquire the two banks completely."

Xia Yu raised his mouth slightly, nodded slightly and said, "Well! I'll wait for your good news!"

Elena, who had been sitting quietly beside her, watched Xia Yu's gestures, and decided the fate of the two banks, and there was a glimmer of confusion in her eyes.

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