The Millennium Semiconductor Survival Guide.

Chapter 358 NewPay in action

History has been completely changed by him. Originally, the financial crisis would end this year, but there will still be aftermath of the financial crisis next year, but those are all minor problems.

From financial practitioners to specific industries and individuals, they will slowly enter a period of confidence restoration and slowly rebuild good expectations for the economy.

Now Zhou Xin cannot guarantee that the financial crisis will end this year. The Occupy Wall Street movement began to rise last year and was suppressed for a period of time. This year, as the subprime mortgage crisis evolved into a financial crisis, it began to break out on Wall Street again.

The collapse of Lehman Brothers gave organizers of the Occupy Wall Street movement even more legitimacy to their actions.

Wall Street has reaped too many benefits in the past few decades. For every dollar earned by the labor force, Wall Street has to earn 1 cents of it, and the federal government takes another 70 cents. They can only get one-tenth of their own labor surplus.

Especially the workers in the Rust Belt who lived through the 80s and [-]s are the main force behind the Occupy of Wall Street.

In the past, everyone could support a large family by working alone, but now working alone can barely support himself.The reason why there is such a big difference is precisely because Wall Street is at work.

They don't care whether their ideas are correct, or whether the theory that they can only get 1 cents for one dollar of labor value is supported by actual data. They only start from their individual feelings and attribute all problems to Wall Street.

Of course, whether Wall Street has deprived a large amount of labor surplus through capital operations, this kind of behavior obviously exists, and every time someone goes bankrupt during a financial crisis, there are also people who make a fortune from this.

During the financial crisis in the 70s, stock investor Warren Buffett bucked the trend and acquired a large number of bankrupt small companies. When the Nasdaq bubble burst at the turn of the century, Wilbur Ross also made large acquisitions and restructured the steel industry.

This is just a typical case. They took advantage of the Fed's policy plan to save the financial crisis. They expected that the financial crisis would pass sooner or later, and then found banks to obtain low-cost funds, and relied on these funds to acquire low-priced high-quality assets. When the financial crisis passed, these High-quality assets will bring them stable cash flow, which is more than enough to cover their liabilities.

Therefore, not only ordinary people are exploited by Wall Street, but entrepreneurs in traditional industries also face exploitation. Every wave of financial crisis is like surviving a disaster for them. If they fail to survive, they will face class slippage.

Internet finance has caused the financial crisis to affect more ordinary people. More middle class people have returned to poverty because they were involved in the subprime mortgage crisis. After returning to poverty, they turned to support the Occupy Wall Street movement. Obama's coming to power cannot bring gains to Occupy Wall Street. ease.

The popularity of smartphones has allowed the Occupy Wall Street movement to spread widely on mobile social media, allowing Americans to support their actions through actions or psychology.

This also makes the Occupy Wall Street movement seem far away from ending.

Historically, the Occupy Wall Street movement was forcibly ended by the Amerikan police who used riot police to clear the area. But now that Obama has just come to power, it is impossible for him to use such drastic actions to affect his reputation when he first came to power.

Unless he doesn't want to continue to choose after four years.

Occupying Wall Street is a loss and a negative impact on America's image, but overall, it is a good thing for Obama and the Donkey Party. Both the financial crisis and Occupy Wall Street were caused by Bush and the Elephant Party.

The longer Occupy Wall Street continues, the more severe the blow will be to the image of the Opposition Party. In the mid-term elections two years later, the Elephant Party will suffer even greater losses.

Therefore, from the perspective of two-party politics, there is no rush in New York under the control of the Donkey Party. The interests of the American faction and party now far outweigh the national interests.

Zhou Xin's intuition told him that there might be a problem, because according to common sense, Merrill Lynch's piece of cake would not be NewPay's turn.

He hoped to get a more accurate judgment, but felt it would be a pity to let it go in vain.

Therefore, Zhou Xin called Wu Shiqiang to serve as his adviser. He still wanted to ask as many other people's opinions as possible.

Wu Shiqiang worked at Americen. Although he was a minor player in Bank of China, after so many years of experience, even if he was placed on Wall Street, he would be considered the number one person in terms of ability and experience.

People are determined by experience, and talent is only part of it. There is not much difference in talent between individuals, and Wu Shiqiang's talent is not bad either.

"Affected by the financial crisis that evolved from the subprime mortgage crisis, analysts believe that the neon economy may face a more serious decline in the fourth quarter of this year. The neon economy and fiscal policy minister Kaoru Yosano publicly stated the neon economy at a press conference on the 19th. There are no signs of a trend reversal yet.

He also believes that under the current background of world economic slowdown, the neon economy will further decline in the future, and hinted that the neon economy may experience negative growth in fiscal year 2009. "

"Data recently released by Eurostat show that the EU economy has officially entered recession in the third quarter of last year and is still facing further decline this year."

The financial news on Shenhai TV on the TV is filled with a strong signal of crisis. All media are exaggerating the atmosphere that the current environment is not good and everyone needs to prepare their psychological expectations.

Your life is difficult, not because of you, but because of the bad environment. Don’t be too pessimistic, life will still have to go on.

But when you want to ask whose fault it is and what can be done to change such a crisis, don’t say that the media doesn’t know. Even if they know, they won’t tell the truth.

"This is probably the situation. I want to hear your opinion." Zhou Xin asked.

Because Zhou Xin was in Zhangjiang, Wu Shiqiang spent most of his time in Shenhai and only went to Yanjing when necessary. After hearing this, he realized that his boss was obviously tempted by the acquisition.

If he hadn't been tempted, Zhou Xin would not have come to ask his opinion.

In Zhou Xin's huge career map, his status is not even among the top five.

“I think it depends on price, how supportive the Fed is willing to be and what’s really going on at Merrill Lynch.

We need to know Merrill Lynch's current risk exposure and potential future risks, we need to know its assets and liabilities, and we need to have an understanding of its liquidity.

I think we can agree verbally first, then put forward our conditions, and then find an accounting firm to conduct a comprehensive audit of Merrill Lynch. "

At this point in time, accounting firms are almost out of money. Such a large order can be ranked among the top four major annual projects.

“Then there’s the price, whether Merrill Lynch’s price is appropriate, and whether there’s room for negotiation.

I think there is actually a lot of room for negotiation, otherwise Paulson would not be so anxious.

In addition, I also asked someone on the way here. There are many reasons why Merrill Lynch does not want to sell to Bank of America, and price is only one of them.

There are also 1.7 wealth advisors at Merrill Lynch. To put it bluntly, they are sales and consultants. Bank of America will lay off all these people. Bank of America has its own wealth advisors, and they don't need the people from Merrill Lynch.Including Merrill Lynch's headquarters, there will also be a major blood change, the people who work will be retained, and the leadership will all be cleaned. Even if it is not cleaned now, it will be cleaned after a while.

Bank of America only wants the name Merrill Lynch and its assets and liabilities. Bank of America will kill Merrill Lynch's people if they can.

The two sides were in a stalemate over the price, and a large part of the underlying factor was that Merrill Lynch's management didn't want to sell. "

Wu Shiqiang’s inside information is true. After Bank of America acquired Merrill Lynch, it first purged all the management and then the grassroots employees. Finally, in 2013, Bank of America directly disbanded Merrill Lynch and only retained it. As a name for retail brokerage and investment banking business, it swallowed Merrill Lynch completely.

Even in 2019, Bank of America announced that it would phase out Merrill Lynch, a brand that had lasted for 104 years.

"The last thing is the support from the Federal Reserve. Merrill Lynch wants US$1000 billion. That's impossible. No one can buy Merrill Lynch with US$1000 billion in cash at this point in time.

Neither Goldman Sachs nor JP Morgan can do it. They all need the support of the Federal Reserve.

If NewPay wants to acquire Merrill Lynch, it will also need the support of the Federal Reserve. It depends on how strong the Fed's support is. "

After hearing this, Zhou Xin had a complete idea and nodded: "Okay, I understand."

"Damn O'Neal, who asked him to make such a decision? How could Merrill Lynch be acquired like this, or by Bank of America?"

Merrill Lynch's acquisition by Bank of America is somewhat similar to CITIC Construction's acquisition by Huaguo Bank. If it were not for administrative intervention, this would be something that neither party would accept.

“When the subprime mortgage crisis was so obvious, and Goldman Sachs executives were canceling their vacations to deal with the subprime mortgage crisis, where was O’Neal? He was on the golf course swinging round after round by himself.

This is a problem with his professional attitude. He has caused irreparable losses to Merrill Lynch. Now he wants to solve the problem by selling Merrill Lynch. This is impossible. "

"Bank of America even made an insulting offer of US$500 billion, and O'Neal actually moved in order to solve the problem!"

On Merrill Lynch's internal board of directors, the directors learned very late that O'Neill planned to sell Merrill Lynch to Bank of America, and everyone was dissatisfied with this decision.

Because the price is too low, and it was you, O'Neal, who dug the hole, and we have to bear the loss?Isn't this funny?

O'Neal is the CEO of Merrill Lynch. Since he became CEO in 2004, he has driven all the previous executives out of Merrill Lynch and formed a team of his own.

As for why the board representatives allowed him to do this, it was because during his tenure at Merrill Lynch, he laid off 2.4 employees, shut down businesses in South Africa, Maple Leaf Country, Kangaroo Country, Neon and New Zealand, and reduced the trading volume of U.S. stocks. 75%, all but eliminating underwriting of commercial paper, short-term financing and agency bonds.

This is to reduce expenditures. Kaiyuan is heavily involved in arbitrage on subprime loans and hedge funds, which brought huge profits to Merrill Lynch during the 04-06 period. At that time, no one thought these were non-performing assets.

Various means have made Merrill Lynch's financial data extremely beautiful. This is the source of O'Neal's power, and it is also the straw that destroys him now.

Unable to tolerate O'Neal's behavior any longer, board representatives joined forces to oust him from Merrill Lynch, in the same way he had ousted previous executives.

Driving O'Neal away won't solve the problem, and Merrill Lynch is still on the verge of crisis.

“NewPay emerges as potential buyer of Merrill Lynch

According to the latest news, after Merrill Lynch made its offer, Bank of America's willingness to acquire Merrill Lynch significantly weakened. When the bankruptcy of Lehman Brothers became a reference case for Merrill Lynch, Wall Street analysts believed that Merrill Lynch would compromise and accept Quote from Bank of America.

At this time, NewPay chairman Peter Thiel said in an interview with the Wall Street Journal that NewPay was very interested in Merrill Lynch, and NewPay hoped to help its Internet financial business enter a new level by acquiring Merrill Lynch.

According to an internal executive at Merrill Lynch, Merrill Lynch did have contact with NewPay after expelling Stan O'Neill, and the two parties are currently preparing for the first formal negotiation. "

For Merrill Lynch, the end of NewPay is good news. With one more buyer, they will have more bargaining power.

Otherwise, the lessons learned from Lehman Brothers will be right in front of us. Standard & Poor's just downgraded Merrill Lynch's stock, and Merrill Lynch, which is riddled with negative news, really can't hold on anymore.

Due to the good news that NewPay was willing to acquire Merrill Lynch, Merrill Lynch's stock finally stabilized. Even if the S&P downgraded, it could not prevent Merrill Lynch's stock from bucking the trend and rising in the red.

"We believe the acquisition of Merrill Lynch will help NewPay better understand what front-line investors want.

NewPay has always communicated with investors through mobile applications and web pages. Compared with specific people, such a corporate image has no warmth.We hope to further improve our Internet financial system through the acquisition of Merrill Lynch and help more investors. "

“You are right, Merrill Lynch’s fixed income division is experiencing huge losses due to mortgage bond and subprime mortgage bond loan products, which is an uncertain factor.

So we only have an intention now, and the specific intention to acquire can only be determined after detailed communication between us and Merrill Lynch. "

"From my personal perspective, we are optimistic about this. Merrill Lynch suffered heavy losses due to the subprime mortgage crisis. The losses are temporary. We value Merrill Lynch's value more than the losses."

In an exclusive interview with the Wall Street Journal, Peter Thiel conveyed to the outside world NewPay’s optimism about Merrill Lynch.

I am really afraid of not delivering this kind of positive news. I am afraid that other financial institutions will cause trouble and cause Merrill Lynch to go bankrupt. At that time, it will be too late to make any acquisitions.

Don't say it's impossible. Lehman's bankruptcy had a lot to do with Goldman Sachs's refusal to trade with Lehman Brothers. Goldman Sachs's refusal to trade with Lehman Brothers was the straw that broke the camel's back.

After Peter Thiel's public statement, Merrill Lynch instantly became a hot potato, because Bank of America did not not want to acquire Merrill Lynch, they just wanted to complete the acquisition at the minimum cost.

Now that competitors have emerged, Bank of America will naturally increase its offer.

　Procrastination committed. . .

　　
　
(End of this chapter)