Chapter 760 Gloves (Two in One)

Flying from Houston to San Francisco, the two sides are like two different worlds.

The whistles, dribbling sounds, and cheers all disappeared from my ears, and were replaced by bright offices and dense statistical documents.

Fang Zhuo arrived in Silicon Valley at noon. After a simple lunch, the first thing he did was not to inspect Yike's R&D center here, but to hold a small meeting with Kong Yu, the head of MIGA Fund who came from New York, in the office.

Since MIGA Fund and Goldman Sachs got online, it can be said that it has made rapid progress. It not only helped the cooperative banks to package CDO shipments, but also tried to let the institution name and issue a CDO security.

In this process, MIGA Fund was very proud and made a lot of money.

However, as the person in charge, Kong Yu's hair was falling more and more.

Especially after receiving Mr. Fang's order to secretly borrow and find shells in other parts of the world, he suffered from insomnia. First, he was worried about the financial market, second, he was worried about the MIGA fund, and third, he was worried about himself...

From the project manager who walked into the office of Hang Lung 23 with a gasoline barrel to the current well-known fund president on Wall Street, Kong Yu has gained a lot in this process, but he feels more and more that it is not his ability that has reached this level, but the development of the market and some kind of power that has lifted him to his current position.

Knowing too much is not a good thing.

Kong Yu is a little worried that Mr. Fang has let him know too much.

So, he took the initiative to come from New York this time. He originally planned to go to Houston while Mr. Fang's team won the championship, but he didn't expect to come to Silicon Valley after the phone call.

"The profit is good, Goldman Sachs is still strong, this is enough to open a new factory for Bingxin."

Fang Zhuo read the report from the MIGA fund, paid attention to a few key data and praised it.

Then, he put down the file, looked up at Kong Yu, and asked, "Boss Kong, why are your eyes red?"

Kong Yu smiled bitterly and said, "I'm a little stressed."

He came here today to report the situation in the market again, and to see the boss's attitude.

We talked once before in Beijing, and now we have to talk again.

After Kong Yu said this, he paid attention to Boss Fang's expression, and sure enough, he didn't see any surprise, as if the other party knew the purpose of this trip.

"Add some tea." Fang Zhuo gestured to Boss Kong to pour him tea, and threw him a cigarette, "Tell me about the situation."

Kong Yu poured the tea and lit the cigarette, and for some reason he felt much more at ease.

He took two puffs, sorted out his thoughts slightly, and started from Goldman Sachs: "Boss Fang, there is a very important situation. Goldman Sachs seems to have a lot of illegal operations on CDO."

Fang Zhuo nodded slightly, indicating that he was listening.

"Because we have always had a good cooperation with Washington Mutual Bank, in April, considering the good market conditions, I asked the foundation to package some not-so-high-quality loans from several banks into CDOs, and then sell them under the name of Washington Mutual Bank."

"During this process, I found that Goldman Sachs might be doing something similar."

Fang Zhuo interrupted: "It sounds legal and compliant."

Kong Yu shook his head and said: "No, our CDO, whether it is Washington Mutual Bank or MIGA Fund, is very formal and has fulfilled its obligation to inform, but Goldman Sachs' CDO that entered the market under its name..."

He first explained his motives: "Because what Goldman Sachs is doing is somewhat competitive with us, I want to test the waters and see if we can cooperate with Goldman Sachs in the future and issue it under the name of Goldman Sachs. CDO, so after a thorough investigation of Goldman Sachs' CDO, it was discovered that what was packed in it was all garbage among garbage. "

"There are no loans from big banks at all, basically small local banks and small financial institutions, such as Franklin Bank in California, which only requires a 7% down payment for real estate loans, and nearly 40% of the loans are interest first and principal later, and borrowers have to pay a huge balance in a few years. "

"There is a huge bubble here, and CDO is a mixture of bubbles and bubbles. "

Kong Yu finally said solemnly: "And Goldman Sachs concealed the information of the other party that cooperated with it to issue CDO, and the other party that issued CDO was shorting CDO! In other words, they are deliberately creating CDOs that will definitely have problems in order to achieve the effect of shorting. "

Fang Zhuo took a sip of tea, this tea is not bad.

Seeing Fang Zhuo didn't say anything, Kong Yu expressed his opinion: "This is definitely an act of defrauding investors and definitely violates the relevant regulations of the SEC!"

He emphasized: "This is illegal!"

Fang Zhuo thought for a while and said slowly: "So? Should we cooperate with Goldman Sachs or not?"

Kong Yu: "..."

He reiterated: "Mr. Fang, Goldman Sachs violated the law. In particular, if this type of CDO really explodes, there may be serious consequences, which will lead to a severe investigation of Goldman Sachs' violations."

Fang Zhuo nodded: "Goldman Sachs made a mistake."

Kong Yu was about to agree, but suddenly realized the meaning of Mr. Fang's words. For Goldman Sachs, making mistakes is more serious than breaking the law.

He was silent for a while before he recovered, and hesitated for a few seconds, and said: "Mr. Fang, I suspect Goldman Sachs is buying CDS of its own CDO to hedge risks or try to make profits from it."

"Really? Goldman Sachs' operation of eating the front and the back is too wonderful." Fang Zhuo said lightly, "So, Mr. Kong, what is your suggestion for the MIGA fund?"

Kong Yu was stunned.

Today he wanted to use his explosive judgment on Goldman Sachs to test his boss' attitude towards him.

In theory, the two should have an in-depth discussion and even find someone to verify Goldman Sachs' operations. Although it is strictly confidential, there is no impenetrable wall in the world. Even if you secretly investigate, you can find traces. It will be easier for Mr. Fang to take action.

However, Mr. Fang asked what the MIGA fund should do...

What should be done?

CDO should still be sold, right? CDS can also be bought. Even if a default breaks out, it will probably only be localized and will cause market fluctuations.

Kong Yu's thoughts here have a faint sense of intense uneasiness.

Is it possible to make wild guesses about the judgment of the entire financial market?

If the risk of certain CDO bubbles and CDS defaults is put into the entire system, does it seem too radical?

Kong Yu wanted to say that the MIGA fund should proceed cautiously as usual, but he always felt that there was danger coming. However, the direction of the danger was ridiculous according to common sense.

He was speechless for a long time.

"What is the name of the institution that cooperated with Goldman Sachs to issue CDO securities?" Fang Zhuo asked a specific question.

"Copper Capital." Kong Yu replied.

Fang Zhuo recalled carefully and had no impression, but it didn't matter. It was enough for him to have an impression of John Paulson, the prototype of "The Big Short".

Copper Capital did similar things to John Paulson, and the latter was cooperating with Goldman Sachs.

It seems that Goldman Sachs has made a lot of moves in secret.

John Paulson took advantage of the subprime mortgage crisis to short sell, and made a profit of more than 20 billion US dollars.

He personally gained billions, and the bulk of the money was divided among various institutions.

I believe that Goldman Sachs also had a share in this.

Regarding this subprime mortgage crisis, considering the bad reputation of short selling, considering the influence of both overt and covert, and considering that Bingxin still has the constraints of purchasing equipment and introducing technology, Fang Zhuo believes that he should quietly make some equipment money and bottom-fishing money while ensuring his own safety.

John Paulson, who is at the forefront, can become a useful glove.

Many people know John, many people know Goldman Sachs, but how many people know John's fund clients?

For safety, funds need to be transferred several times through channels around the world.

This is exactly the order Fang Zhuo gave to Kong Yu.

In addition, you can also see which companies in need can take the opportunity to short sell.

Fang Zhuo plans to install some plug-ins for Bingxin and Yike this time to accelerate.

There was a silence in the office, but the two people were silent in different moods.

Kong Yu was already a little scared.

"MIGA fund products can be stopped after the delivery to see how much funds can be used." Fang Zhuo drank the tea to the bottom and made a decision that shocked Kong Yu.

"Mr. Fang, we have a lot of high-quality stocks and equity. It will be a loss if we stop." Kong Yu said.

"Didn't you come to me today to worry about the bubble in the market?" Fang Zhuo pointed this out, "Or, do you not trust your own judgment? There are huge risks in the US financial market?"

Kong Yu didn't actually say this, but he had such thoughts in his heart.

I haven't slept well these days. When I heard Mr. Fang say this, I suddenly felt a little dazed. Did I say something similar just now?

Fang Zhuo continued, "I think your judgment is bold and sharp. No matter what the actual situation is, for us, it's just a matter of making more or less money at this time. It's not unacceptable to stop in time."

That's what he said.

But when he thought of the loss, Kong Yu still felt heartbroken.

Fang Zhuo thought for a while: "MIGA Fund will be silent for the time being after the normal delivery. The next step is how to let the funds short the market safely."

Kong Yu had to speak, he considered: "Mr. Fang, I may have been a little reckless just now, and my judgment may also have some problems..."

Fang Zhuo sighed: "Mr. Kong, I know how much you have prepared for today's words when I saw your red eyes. I trust your judgment very much. I always think that you have a keen talent for the market that others can't match."

"The next work will not be particularly complicated, but it requires special caution."

"What we have to do is to short in compliance with regulations, but we just need to pay attention to covering up the whereabouts of the funds."

Fang Zhuo does not intend to let Kong Yu operate the whole process, and different people will be responsible for funds of different sizes.

But as a fund manager who has always been very responsible and whose family is in Shanghai, Kong Yu, who is deeply trusted, will undoubtedly be responsible for the largest part of the funds.

Kong Yu was still shocked when he heard the decision from his boss, but his original fear faded a lot.

His thoughts were intertwined, and he asked again: "What about Chinese stocks?"

"Keep half of Sina's, and treat the others equally." Fang Zhuo said, "Normal financial operations, Sina will not have any objections."

Kong Yu nodded slightly. Regardless of whether he had said anything about financial market risks today, Mr. Fang actually had his own judgment in his mind.

Fang Zhuo pondered again and said: "Add a few more layers of shells, make a few more rounds in Russia and the Middle East, find people from Europe to come to the United States, and remotely find opportunities to cooperate with Goldman Sachs, just like the Copper Capital you just mentioned, learn from it, issue CDO on a small scale, do some small shorts, and make some small money."

Goldman Sachs's boss Paulson is about to be a referee, and there is a very good prospect for cooperation with Goldman Sachs.

Even if Goldman Sachs makes a mistake, the punishment will come only after Paulson's term ends.

The big money can be used to give wings to Bingxin and Yike, and the small money can be used to buy Sony's building. The security is high enough and it will not attract much attention afterwards because of the scale issue.

Kong Yu nodded silently.

The original intention of today was to see Mr. Fang’s attitude, but with the sudden sudden change of MIGA Fund, we still need to digest this decision and the meaning behind it.

Fang Zhuo looked at Kong Yu's complicated expression and asked, "Mr. Kong, is there anything else you need to add?"

"Mr. Fang, I probably need to think about it again. My thoughts are a little confused." Kong Yu said this, but his mind suddenly became clearer. Since Mr. Fang still wants to employ people and still trusts himself, if the American market really When systemic risk occurs, the profits therein are beyond imagination.

He recalled Buffett's famous quote.

Previously, seeing Goldman Sachs' greed frightened him. Now that the fear has passed, it's time to become greedy.

"Okay, don't go back to New York for the next few days. If you need to check for any deficiencies, you should also pay attention to the communication tools." Fang Zhuo said calmly, "You should be separated by a few more layers, although there shouldn't be any personal danger. , but also pay a little attention.”

Kong Yu nodded solemnly.

Soon, he left the office and needed to go back to collect his thoughts.

Fang Zhuo picked up the document again, looked through it once, and then took out a document report from another person from the drawer. He was very pleased to find that Kong Yu's behavior was becoming more and more mature. He used to be a bit of a rat store, but now he is becoming more and more cooperative. Ruled.

Some documents are destroyed and some documents remain.

The office drawers are locked.

Soon, matters about the MIGA fund were put aside, and teams from Qualcomm and Google arrived one after another in the afternoon.

Not many people came from Qualcomm. Including the vice president who went to the stadium to watch the game last time, there were only three people in total.

Google paid more attention to it. Not only founder Larry came in person, but CEO Eric also took people to sit in Yike's R&D center.

After communicating with Larry, Eric originally thought that he did not need to come over to participate in this kind of mobile phone cooperation discussion.

But a new piece of news changed his mind.

Sony rejected Google's acquisition of its Android shares, and this part unexpectedly and reasonably fell into the hands of Fang Zhuo. After all, this person has a close relationship with Sony.

Eric considered the significance of the existence of the Android company and wanted to talk about Google's strong desire to acquire it. The remaining parts were concentrated in Fangzhuo's hands, and he might be able to get it at a high price.

Fang Zhuo's appetite may be bigger than Sony's, but after all, there is a price that can impress him, right?

Eric believes that discussing cooperation on the first mobile phone in the Android camp is a good opportunity for communication.