Chapter 775 Shouting for War and Killing (Two in One)

The displeasure of the President of the New York Federal Reserve was fleeting.

Because of the lighting and the angle of the position at the dinner, only a few people in the circle saw Geithner's expression, and among these people, only Susan from Northern Trust immediately understood the source of President Geithner's mood change.

When Mr. Fang called before, he revealed the names of the fund clients, one of whom was this one.

Susan didn't know the amount of Geithner's investment or the investment method, and she didn't intend to delve into it. She only knew that there was such a thing and that he was also here tonight.

However, although Fuld was an annoying big mouth, he was actually in charge of the behemoth Lehman Brothers.

As one of the five largest investment banks in the United States, Lehman certainly had both the scenery in the market and a series of resources.

In fact, Susan didn't expect this "gorilla" to appear on this occasion tonight. Fuld joined Lehman as early as 1969 and has been in control of the company for 12 years. He seemed to be the two sides of the same coin with this investment bank.

It is said that Fuld is arrogant, self-willed and has many enemies. In fact, under the leadership of the gorilla, Lehman Brothers' stock price rose 17 times.

Last month, Business Week also praised Lehman's head, saying that "Fold reshaped Lehman Brothers' corporate culture and greatly diversified the company's business, which is worthy of learning from Wall Street peers."

With such praise, Lehman Brothers is about to become the largest trader on the London Stock Exchange.

However, although Lehman is at its peak, it has a serious feud with Goldman Sachs.

In 1999, Goldman Sachs encountered a crisis due to the bursting of the Internet bubble. Lehman took advantage of the situation to short Goldman Sachs and sniped the financial backers who lent a helping hand to Goldman Sachs. Both sides were bloodthirsty.

As a result, although Lehman moved up one place in the investment bank ranking, Goldman Sachs quickly recovered under Paulson's wrist.

Then... this year, Paulson became the 74th financial steward.

When the news came out, many people, including Susan, were waiting to see the show.

Susan didn't think that Paulson would forget the bloody conflict in just a few years.

And tonight, although Summers had only a normal relationship with Goldman Sachs and Paulson, another big man, Rubin, was different. He was from Goldman Sachs before he became the 70th financial steward.

Rubin worked at Goldman Sachs for 26 years, and the "Goldman Sachs" label on him had long been indelible, and he himself had no intention of clearing the label.

With such a chief consultant of the New York Economic Institute, "Gorilla" Fuld should avoid him as much as possible.

Or, is there any unusual relationship between Fuld and Summers?

Susan had a lot of thoughts in an instant, and she felt that according to Fuld's stubborn personality, maybe it was "If you invite me, then I will come" and "Why should I, Fuld, not dare to come" as a reason for doing things.

Fuld's comparison between MIGA and Lehman Brothers did not stop because of Geithner's arrival. The former even nodded and greeted the latter, and then continued to talk.

Susan saw this scene and knew that Fuld was definitely not aware that Geithner was also one of MIGA's clients.

She suppressed her smile and considered letting the right person come forward to curb the analysis and poaching of the gorilla.

But it was really hard to find the right person. The gorilla was one of the most powerful people on Wall Street. Even Geithner was listening with a smile on his face. Others around him, such as Kane of Bear Stearns, were of equal status, but it was good enough that he did not follow suit and look down on MIGA, let alone speak out in support.

Susan's eyes turned and saw Kong Yu, the Oriental president of MIGA in the distance.

This status was not right, but at least he was a candidate. You couldn't let Mr. Fang, who was chatting with Rubin, Summers and others, come over to quarrel, right?

She moved her feet, pretending to change a glass of red wine, and waved to the Oriental man who had been alert to the opportunity of the whole audience.

Kong Yu saw the signal from the top circle of Wall Street, his eyes lit up, and he walked over quickly.

However, when he approached, Northern Trust, a big customer, had already stood back in the circle without any expression.

Kong Yu did not lose his composure. His heart had turned cold in countless late nights when Mr. Fang made a big bet based on the market situation. Now he just accepted Mr. Fang's order to recruit customers.

The president of MIGA Fund quietly found a small empty seat and soon understood Ms. Susan's intention. Northern Trust had not come in yet. Maybe now he would also look at his performance to solve the doubts about the future of MIGA Fund?

"Hahaha."

Kong Yu first took out his mobile phone and sent a quick text message to Mr. Fang, and then he fearlessly laughed as an opening remark.

Others are afraid of the head of Lehman Brothers, but he doesn't care!

Kong Yu is not even afraid of gasoline, but he is afraid of messing up Mr. Fang's business tonight!

More than a dozen empty shell SPVs have been registered in the Cayman Islands and Jersey through different channels!

The credit default swaps (CDS) of major insurance companies have been tracing the combination of RMBS and CDO layer by layer!

Who is afraid of whom?

The laughter of the Oriental people really interrupted Fuld's instructions.

Fuld only knew one Oriental person at the charity dinner today, Fang Zhuo. Seeing such impolite laughter, he immediately said unhappily: "What are you laughing at?"

"I am Kong Yu, the president of MIGA Fund." Kong Yu first introduced himself to a circle of big shots, and then immediately moved out an existence that could be equivalent to Lehman Brothers. "I heard Mr. Fuld talk about the business of MIGA Fund, and I couldn't help but feel sorry for him. It’s funny that you have outdated news. We are no longer just underwriting, but are now conducting the issuance of CDO securities with Goldman Sachs!”

MIGA Fund is indeed engaged in this, but that was before, and now it is just a pretext for talking about it.

From the perspective of financial products, it is still not as good as Lehman Brothers' CDO, but MIGA Fund is barely a first- or second-tier player.

When Fuld heard "Goldman Sachs", he didn't expect to be refuted by the owner of the fund. He didn't get angry. He just said contemptuously: "You guys issued it together with Goldman Sachs? You spent a lot of money to get Goldman Sachs to put its name on it, right?"

This really hit the spot.

Not all CDO securities can easily find buyers. With the name of Goldman Sachs as a signature, it is easier to sell and make profits.

Goldman Sachs has a market price of 10 million to 15 million U.S. dollars. This price can get it stamped and certified.

Don’t think it’s too expensive. It doesn’t matter. If you don’t have the connections, you won’t be able to spend the money even if you want to.

Everyone present was an expert, and when they heard Fuld say this, they all smiled knowingly.

Kong Yu said calmly: "MIGA Fund and Goldman Sachs have always had a very in-depth cooperative relationship. Last year, Mr. Paulson and our boss invested in two well-known banks in China."

He pretended to ponder: "Oh, yes, we are also cooperating with Deutsche Bank and Bank of Washington. Now, we all maintain a happy consensus in the securities market. The size of the MIGA fund is certainly not as large as that of Lehman, but it is beneficial to the interests of customers." Has the highest confidence on Wall Street.”

Kong Yu raised his voice slightly and asked a question: "Lehman sells CDO securities to customers. Even if the profit is high, can it still be more profitable than us allowing customers' funds to participate in the securitization process?"

Fuld laughed loudly: "Let customers' funds participate in securitization? It can only be said that your customers are indeed very courageous."

Kong Yu also smiled: "There are risks, but there are also satisfying profits. MIGA Fund has proven our ability to balance the two in the past. If Mr. Fuld believes that the securities market selected by MIGA Fund has made our clients have the courage, That’s fine, then I’m afraid we have to worry about Lehman even more.”

He shrugged: “After all, Lehman was much bigger than our fund.”

Fuld looked at the strange oriental man. He couldn't say he was angry for a small person, but he was still a little angry.

The people around him looked at this scene and were a little surprised by the Oriental's clear and well-organized protection of his own fund. Many people were respectful to the gorilla.

Susan, who brought Kong Yu here, even admired the MIGA Fund CEO for being neither humble nor overbearing.

Fuld took a sip of the wine in his glass, reached out and waved to Benjamin, the vice president of Lehman who was not far away, and then smiled disdainfully and said: "Do you think I don't know what kind of junk securities the MIGA fund does? You and Lehman talks about scale and risk?”

Benjamin, the vice president who is familiar with the business and competitors in the market, walked quickly.

At this moment, Fang Zhuo walked over slowly and asked with a smile: "What? Can't you talk to Lehman?"

He put his hand on the shoulders of Benjamin, who had just stood still, and turned him around with a little force. The latter maintained his unconscious respect for wealth and gave up his position without resistance.

Fang Zhuo nodded to the group of people, continued to look at Fuld, and said, "Lehman still won't let me speak?"

Fuld didn't bother to blame himself for being interrupted by the MIGA fund's little guy. He just kept talking about the topic and said lightly: "Of course not. I was just talking about the risks of junk securities engaged in by the MIGA fund."

This is true without using Benjamin to provide data support.

The CDO securities cooperated by MIGA Fund and Bank of Washington learned from the latter. Bank of Washington likes to package some junk subprime debt. This is the power of example.

Fang Zhuo heard this and said in surprise: "Are there still junk securities? Aren't there only two kinds?"

He looked around at potential customers and said with a smile: "There are bonds that can help customers make money, and bonds that cannot help customers make money. MIGA Fund operates the former."

Fuld was stunned for a moment, this statement made some sense.

There must be junk bonds among bonds, but if you can sell junk bonds, you will turn risks into greater profits.

He looked at the oriental rich man in front of him and said without any verbal argument, "It seems that it is necessary for Lehman Brothers to set standards and teach customers in the market how to identify junk securities."

This sentence made the faces of several people watching change slightly.

Funds like MIGA are destined not to be compared with Lehman and Goldman Sachs, and the number of securities they handle will not be too many. If Lehman is widely advertised to talk about the quality of securities and conduct sales sniping, this may really cause trouble.

However, Fuld is the gorilla who can do such a thing. He has never been merciless. When he stabbed Goldman Sachs, he rushed to kill him.

Such a situation, such a few words of swords and swords, is likely to cause huge losses of actual interests. Isn't the price of the big boss's dispute a bit high?

Susan from Northern Trust couldn't help but frown, and regretted calling Kong Yu over. The excitement had escalated too much.

Phipps of Bessemer Securities looked at the Oriental Rich Man with interest, wanting to hear his response.

However, before Fang Zhuo could speak, President Geithner, who was silently sipping red wine, said slowly: "Don't set such a standard for one company. Otherwise, if you set one today and it sets another tomorrow, what will happen to the stability of the securities market?"

Fold looked at the short Geithner with some surprise, and said: "Market stability means that users will not suffer losses due to junk securities."

At this time, another voice sounded from the side: "Are the topics of drinking and chatting so serious now?"

Summers, the host of the charity dinner, arrived.

Fang Zhuo said lightly: "Lehman wants to set standards for the quality of securities. It sounds like Fuld has some misunderstandings about our MIGA fund."

Summers took everyone's expressions into his eyes, smiled, and said in surprise: "The different risks and returns of the same RMBS (mortgage-backed securities) in our market cannot satisfy you guys?"

Even for the same bond, different people can choose different grades of it to get different returns and bear different risks.

Fuld wanted to speak, but heard Summers continue: "It seems that the first thing we did when we established the New York Economics Institute was to explore the US bond market. If the market mechanism can be improved, I must go to Paulson and ask him to support us as soon as possible."

When the head of Lehman heard Paulson's name, he frowned and choked on his words.

Fang Zhuo praised Mr. Sa for his sense of ownership in his heart, and then he saw Rubin, who had been chatting before, coming over.

He made way for the big man.

Rubin was not polite. After he stood still, he saw Fuld of Lehman for the first time and said something that was unexpected to Fang Zhuo: "Although I don't know what you are talking about, when I saw Fuld, the gorilla, I knew he couldn't do anything good."

The nickname "gorilla" is mostly a derogatory term for competitors in the industry. Lehman's internal and friends generally praised him as "King Kong".

When Lehman shorted Goldman Sachs, Rubin had already left Goldman Sachs and entered politics. Fuld actually did not have a head-on confrontation with him.

Although Rubin's tone was a bit joking, the attitude of this kind of person has been quite obvious.

First it was Geithner, then Summers, and now Rubin, and Paulson's name was mentioned in the middle.

No matter how arrogant and tough Fuld was, he felt that something was wrong.

He reached out to take the wine glass that had been put down, revealing an indescribable smile: "It was just a joke, you guys are shouting for war and killing."

Fold's tongue stirred the red wine in his mouth, and he still had a strong heart after all. He felt that the previous sentence was a bit weak, and said again: "Look at you, Lehman is not afraid of shouting for war and killing, today I just came to see the New York Institute of Economics, I admire Summers' economic knowledge very much."

Fang Zhuo smiled and said: "Yes, me too, Mr. Summers and Mr. Rubin have unparalleled charm, which makes me fall for them."

He mentioned Rubin, who was not mentioned by Fuld. Although Mr. Summers did have a family background and was better at economic theory, Rubin was standing next to him.

Susan of Northern Trust watched enough of the excitement, and finally made a round, raising her glass: "Cheers to the establishment of the New York Institute of Economics."

Cheers!

Cheers to the loose New York Institute of Economics, which is beginning to take shape and will eventually be squeezed into a ball by the financial crisis!